UAE Unemployment Insurance (ILOE): 2026 Guide
How the UAE's mandatory unemployment insurance (ILOE) works — the tiny premium, the 60% payout, the caps, who is eligible, and how a claim is paid.
→ Open the UAE Unemployment Insurance Calculator
The Involuntary Loss of Employment (ILOE) scheme is the UAE's mandatory unemployment insurance, introduced under Federal Decree-Law No. 13 of 2022. For a very small monthly premium it pays a temporary income if you lose your job through no fault of your own.
Two categories, two premiums
| Category | Basic salary | Premium | Monthly payout cap |
|---|---|---|---|
| A | AED 16,000 or below | AED 5 / month | AED 10,000 / month |
| B | Above AED 16,000 | AED 10 / month | AED 20,000 / month |
You are placed in whichever category matches your basic salary. The premium is trivial — AED 60 or AED 120 a year.
How much ILOE pays
A valid claim pays 60% of your average basic salary over the last six months, subject to your category cap. It runs for up to three months per claim, or until you start a new job — whichever comes first.
Eligibility
- You must have paid premiums for at least 12 consecutive months before claiming.
- The job loss must be involuntary — resignation and dismissal for disciplinary reasons or gross misconduct are excluded.
- You must file within 30 days of the employment ending.
Business owners/investors, domestic workers, workers under 18, and retirees drawing a pension who take new work cannot subscribe.
The lifetime cap
Across your entire UAE working life, total ILOE payouts cannot exceed 12 monthly benefits in aggregate, no matter how many separate claims you make.
How a claim is paid
Once approved, the first payment is typically disbursed within about 14 days. ILOE is completely separate from your end-of-service gratuity — you can be entitled to both at the same time. Rates were last verified in July 2026; because scheme parameters can be revised administratively, always confirm current figures at iloe.ae before relying on an estimate.
Subscribing and staying compliant
ILOE is mandatory for most private-sector and federal-government employees, and non-subscription can attract fines and block certain services, so it is worth confirming you are enrolled and paid up. You can subscribe and pay through the iloe.ae portal, the app, kiosks, or approved channels, choosing monthly, quarterly, half-yearly or annual payments. Miss premiums for more than three months and your subscription can be cancelled, resetting the 12-month clock you need before you can ever claim. Treat the AED 5 or AED 10 monthly premium as a standing item, not an optional extra.
When a claim arises, you file through the same portal within 30 days of the job ending, and payment follows an approved claim in roughly two weeks. Keep your termination documents, since the scheme must verify the loss was involuntary.
Key takeaways
- Two tiers: Category A (basic ≤ AED 16,000) and Category B (above), with AED 5/AED 10 premiums.
- Payout is 60% of average basic salary, capped at AED 10,000 or AED 20,000/month.
- You need 12 consecutive months of premiums before you can claim.
- Only involuntary job loss qualifies; file within 30 days.
- Lifetime payouts are capped at 12 monthly benefits in aggregate.
Frequently asked questions
Who is eligible for UAE ILOE unemployment insurance?
You must have paid ILOE premiums for at least 12 consecutive months, have lost your job involuntarily (not resignation or disciplinary dismissal), not be in an excluded category, and file within 30 days of your employment ending.
How much does ILOE pay?
60% of your average basic salary over your last six months, capped at AED 10,000/month for Category A or AED 20,000/month for Category B.
What is the difference between Category A and B?
Category A is a basic salary of AED 16,000 or below (AED 5/month premium, AED 10,000 cap); Category B is above AED 16,000 (AED 10/month premium, AED 20,000 cap).
How long does ILOE pay out?
Up to three months per claim, or until you find new work. Lifetime payouts cannot exceed 12 monthly benefits in aggregate.
Is ILOE the same as gratuity?
No. ILOE is government unemployment insurance funded by your premium; gratuity is an employer end-of-service benefit. You can receive both.
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.