How to Calculate Your UAE ILOE Payout
Work out what ILOE would actually pay you if you lost your job — the 60% rule, the category cap, and the three-month maximum, with numbers.
→ Open the UAE Unemployment Insurance Calculator
Your ILOE payout is 60% of your recent basic salary, capped by category, for up to three months. Here is the exact calculation.
Step 1 — Find your average basic salary
Take your basic salary (not total package) averaged over your last six months of work.
Step 2 — Apply the 60% rate
Monthly benefit = Average basic salary × 60%
Step 3 — Apply your category cap
- Category A (basic ≤ AED 16,000): benefit capped at AED 10,000/month.
- Category B (basic > AED 16,000): benefit capped at AED 20,000/month.
Step 4 — Multiply by the claim months
Total claim = Monthly benefit × up to 3 months
Worked example
Average basic salary AED 12,000 (Category A).
| Step | Calculation | Result |
|---|---|---|
| 60% of basic | 12,000 × 60% | AED 7,200/month |
| Category A cap | min(7,200, 10,000) | AED 7,200/month |
| 3-month claim | 7,200 × 3 | AED 21,600 |
If your basic were AED 20,000 (Category B), 60% = AED 12,000, under the AED 20,000 cap, so 3 months = AED 36,000. A Category A earner on AED 18,000 basic would be capped: 60% = AED 10,800, but the cap holds it to AED 10,000/month.
Monthly-benefit table
| Average basic | Category | 60% | Monthly benefit (after cap) |
|---|---|---|---|
| AED 6,000 | A | 3,600 | 3,600 |
| AED 12,000 | A | 7,200 | 7,200 |
| AED 16,000 | A | 9,600 | 9,600 |
| AED 20,000 | B | 12,000 | 12,000 |
| AED 40,000 | B | 24,000 | 20,000 (capped) |
Remember: you must have 12 months of premiums, have lost the job involuntarily, and file within 30 days. ILOE sits alongside your gratuity and the rest of your final settlement — it does not replace them.
How the cap reshapes high salaries
For most employees, 60% of basic sits comfortably under the category cap, so the payout is simply 60% of their recent basic salary. The cap only reshapes the figure for higher earners. A Category B subscriber on AED 40,000 basic would, on the raw 60% rule, receive AED 24,000 a month — but the AED 20,000 cap holds it there, an effective replacement rate of 50%. The higher your basic, the further the cap erodes the headline 60%. This is deliberate: ILOE is a safety net, not full income replacement, and it runs for a maximum of three months per claim.
Key takeaways
- Benefit = 60% of average basic salary over the last 6 months.
- Capped at AED 10,000/month (Category A) or AED 20,000/month (Category B).
- Paid for up to 3 months per claim, or until you find work.
- For high earners the cap lowers the effective replacement rate below 60%.
- You must have 12 months of premiums and file within 30 days.
Frequently asked questions
How is the ILOE monthly payout calculated?
It is 60% of your average basic salary over the last six months, capped at AED 10,000/month (Category A) or AED 20,000/month (Category B).
How many months does ILOE pay?
Up to three months per claim, or until you start a new job, whichever comes first.
Does ILOE use basic or total salary?
Basic salary. The 60% is applied to your average basic salary over the last six months.
What if 60% of my salary exceeds my category cap?
The cap applies. A Category A earner is limited to AED 10,000/month even if 60% of their basic is higher.
Related calculators & guides
More UAE employment calculators
Calcnate keeps a full set of law-accurate UAE tools so you can check every part of an exit or contract in one place. Each is built on Federal Decree-Law 33/2021 and the same figures explained above:
- UAE Gratuity Calculator — your end-of-service lump sum on the 21/30-day bands.
- UAE Final Settlement Calculator — gratuity, leave, notice and pending pay combined.
- UAE Notice Period Calculator — notice length and pay in lieu.
- UAE Leave Encashment Calculator — cash value of unused annual leave.
- UAE Probation Period Calculator — the six-month rules and notice.
- UAE Maternity Leave Calculator — the 45+15 day pay split.
- UAE Unemployment Insurance (ILOE) Calculator — your involuntary-loss payout.
Browse everything on the UAE hub.