UAE Unemployment Insurance (ILOE) Guide: 60% of Basic Salary, Category A/B Caps & How to Claim
ILOE is the UAE's mandatory unemployment insurance — a small monthly premium that pays out 60% of your basic salary if you lose your job involuntarily. Here's exactly how much, for how long, and how to claim.
Since 2023 most UAE private-sector and federal-government employees must subscribe to the Involuntary Loss of Employment (ILOE) insurance scheme under Federal Decree-Law No. 13 of 2022. In exchange for a small monthly premium, it provides a cash safety net if you lose your job through no fault of your own. Here's how it works.
How much does ILOE pay?
The monthly benefit is 60% of your average basic salary over your last 6 months of work — but subject to a category cap:
| Category | Basic salary | Premium | Monthly payout cap |
|---|---|---|---|
| Category A | ≤ AED 16,000 | AED 5/month | AED 10,000/month |
| Category B | > AED 16,000 | AED 10/month | AED 20,000/month |
You are automatically placed in whichever category matches your basic salary. The 60% figure is what you'll actually receive up to that cap.
Worked example
Sara is a Category A subscriber (basic salary AED 12,000). She's made redundant.
- Monthly benefit = 60% × 12,000 = AED 7,200 (below the AED 10,000 Category A cap, so paid in full)
- Paid for up to 3 months = 3 × 7,200 = AED 21,600 total for the claim
If Sara's basic were AED 18,000 (Category B), 60% would be AED 10,800 — under the AED 20,000 cap, so she'd get the full AED 10,800/month. Our UAE ILOE Calculator applies the right category and cap automatically.
How long does it pay out?
- Up to 3 consecutive months per claim, or until you start new work — whichever comes first.
- Lifetime aggregate cap: across your entire UAE working life, total ILOE payments (from any number of claims) cannot exceed 12 monthly benefits.
- The first payment is typically disbursed within about 14 days of an approved claim.
Who is eligible?
To claim, you must:
- Have subscribed and paid ILOE premiums for at least 12 consecutive months before claiming.
- Have lost your job involuntarily — redundancy, company closure, non-renewal by the employer and similar.
- File your claim within 30 days of your employment ending.
- Not be in an excluded group: business owners/investors, domestic workers, under-18s, or retirees drawing a pension who take new work cannot subscribe.
When you CAN'T claim
ILOE only covers involuntary job loss. You cannot claim if you resign voluntarily, or if you're terminated for a disciplinary reason or gross misconduct. Miss the 30-day claim window and the claim is also lost.
ILOE is NOT your gratuity
This trips people up: ILOE and end-of-service gratuity are completely separate. Gratuity is paid by your employer based on your years of service (see our UAE Gratuity Calculator). ILOE is a government-mandated insurance payout funded by your own tiny premium. If you're made redundant with over a year of service, you can be entitled to both at the same time — the gratuity from your employer and the ILOE benefit from the scheme.
Quick reference
| Item | Rule |
|---|---|
| Monthly benefit | 60% of avg basic (last 6 months) |
| Category A cap | AED 10,000/month (basic ≤ 16,000) |
| Category B cap | AED 20,000/month (basic > 16,000) |
| Max duration | 3 months/claim |
| Lifetime cap | 12 monthly benefits total |
| Min subscription | 12 consecutive months |
| Claim window | Within 30 days of job ending |
| Excludes | Resignation, misconduct dismissal |
Scheme parameters were last verified July 2026 — always confirm current rates at iloe.ae, as they can be revised administratively. Source: official ILOE portal (iloe.ae) and the U.AE government portal, as documented on our UAE ILOE guide.
Frequently asked questions
Who is eligible to claim UAE unemployment insurance (ILOE)?
You must have subscribed and paid ILOE premiums for at least 12 consecutive months, lost your job involuntarily (not by resignation or disciplinary termination), and not be in an excluded category (business owner/investor, domestic worker, under 18, or a pensioned retiree in new employment). You must also file your claim within 30 days of your employment ending.
How much does ILOE pay per month?
60% of your average basic salary over your last 6 months of work — capped at AED 10,000/month if you're a Category A subscriber (basic salary AED 16,000 or below) or AED 20,000/month if you're Category B (basic salary above AED 16,000).
What is Category A vs Category B in ILOE?
Category A covers a basic salary of AED 16,000 or below (premium AED 5/month, payout capped at AED 10,000/month). Category B covers a basic salary above AED 16,000 (premium AED 10/month, payout capped at AED 20,000/month).
How long does ILOE pay out for?
Up to 3 consecutive months per claim, or until you start new employment — whichever happens first. Across your entire UAE working life, total ILOE payments cannot exceed 12 monthly benefits in aggregate.
Can I claim ILOE if I resign?
No. ILOE only covers involuntary loss of employment. Voluntary resignation and termination for disciplinary reasons or gross misconduct are not covered.
Is ILOE the same as my end-of-service gratuity?
No — they're completely separate. Gratuity is an end-of-service benefit paid by your employer based on your years of service. ILOE is a government-mandated unemployment insurance payout, funded by your own small monthly premium, that only applies if you lose your job involuntarily. You can be entitled to both at the same time.