Job Loss Insurance Compensation UAE: A Helpbook for UAE Residents

How Much Does Job Loss Insurance Pay in UAE?

Ideally, you are compensated for 1o0% of your basic salary in case you lose your job involuntarily. To receive job loss insurance compensation UAE, you need to have the mandatory ILOE (Involuntary Loss of Employment) scheme subscription followed by a voluntary job loss insurance plan.

Here is how you receive compensation for involuntary job loss in UAE —

ILOE Insurance Compensation Amount UAE

The ILOE scheme is bound to cover 60% of your basic salary for 3 months.

Let’s say you earn AED 10,000 per month as your basic salary. You will receive AED 6,000 per month for 3 consecutive months (from the date of unemployment) under this scheme as ILOE insurance compensation amount in UAE.

However, keep in mind that there are certain limits on the amount that you receive as per your income —

• Basic salary up to AED 16,000 — Up to AED 10,000 per month
• Basic salary of more than AED 16,000 — Up to AED 20,000 per month

What happens to the remaining 40% of the compensation? Read on to find out

How is the Amount Payable Under Job Loss Insurance UAE?

The remaining 40% of the amount is payable under job loss insurance in UAE. It is paid by the insurance company from whom you buy the plan.

Continuing the example above, if your salary was AED 10,000 before the job loss, the ILOE will pay out AED 6,000. Your voluntary insurance policy will pay the remaining AED 4,000 of your basic salary.

Note that you need to subscribe to the mandatory ILOE scheme to buy a voluntary job loss insurance plan in UAE. Get the best job loss insurance plan only on Policybazaar.ae!

Frequently Asked Questions