UAE Unemployment Insurance (ILOE) 2026: How Much You Could Get Paid, Step by Step
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Since 2023, almost every employee in the UAE — federal government and private sector alike — has been required to subscribe to the Involuntary Loss of Employment (ILOE) insurance scheme, established by Federal Decree-Law No. 13 of 2022. It pays you a monthly cash benefit if you lose your job through no fault of your own. This guide explains exactly how the payout is calculated, who qualifies, and what it means for you.
What ILOE actually is
ILOE is insurance, not a government handout and not gratuity. You pay a small monthly premium (AED 5 or AED 10, depending on your salary), and in return the scheme pays you a portion of your salary for a few months if you're made redundant, your company closes, or your contract is not renewed by your employer. It does not pay out if you resign or are dismissed for disciplinary reasons/gross misconduct — this is insurance against involuntary job loss specifically.
Am I eligible?
- You must have paid ILOE premiums for at least 12 consecutive months before your claim.
- Your job loss must be involuntary — redundancy, company closure, non-renewal by the employer, and similar. Resignation and disciplinary termination are excluded.
- You must not be in an excluded category: investors/business owners, domestic workers, workers under 18, and retirees drawing a pension who have taken new employment.
- You must submit your claim within 30 days of your employment relationship ending.
Category A vs Category B
Your subscription category is based on your basic salary:
- Category A — basic salary AED 16,000 or below. Premium: AED 5/month. Maximum monthly payout: AED 10,000.
- Category B — basic salary above AED 16,000. Premium: AED 10/month. Maximum monthly payout: AED 20,000.
The payout formula
If you qualify, ILOE pays 60% of your average basic salary over your last 6 months of work, subject to your category's monthly cap — for up to 3 consecutive months, or until you start new work, whichever comes first. Payment stops immediately once you're re-employed.
Worked examples
Category A example: basic salary AED 10,000/month, made redundant after 2 years of subscription. Monthly compensation = 60% × 10,000 = AED 6,000 (under the AED 10,000 cap, so no reduction). Over a full 3-month claim: AED 18,000 total.
Category B example: basic salary AED 20,000/month, company closes down. Monthly compensation = 60% × 20,000 = AED 12,000 (under the AED 20,000 cap). Over 3 months: AED 36,000 total. A higher earner on AED 40,000 basic would compute to AED 24,000/month uncapped, but is capped down to AED 20,000/month — AED 60,000 over 3 months.
The lifetime cap
ILOE isn't unlimited. Across your entire working life in the UAE, the total benefits you can receive — no matter how many separate claims you make over the years — cannot exceed 12 monthly payments in aggregate.
Timelines
File your claim within 30 days of your job ending. Once approved, your first payment is typically disbursed within about 14 days, with further monthly payments continuing automatically for up to 3 months (or until re-employment).
ILOE vs gratuity — don't confuse the two
Your end-of-service gratuity (see our UAE Gratuity Calculator) is paid by your employer based on your years of service, regardless of why you left. ILOE is a separate government-mandated insurance payout, funded by your own premium, that only applies to involuntary job loss. If you're made redundant after several years of service, you may be entitled to both your gratuity and your ILOE payout.
A note on accuracy
ILOE premiums, category thresholds and monthly caps are set by insurance-scheme regulations rather than being fixed permanently in the underlying decree-law, so they can in principle be revised administratively. The figures above (verified July 2026) match both the official iloe.ae portal and the U.AE government portal — always double-check your exact entitlement at iloe.ae before relying on any figure, including this one.
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). You're placed in whichever category matches your basic salary.
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 working life in the UAE, total ILOE payments (from any number of claims) cannot exceed 12 monthly benefits in aggregate.
Can I claim ILOE if I resign?
No. ILOE only covers involuntary loss of employment — redundancy, company closure, non-renewal of contract by the employer and similar. 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 (see our UAE Gratuity Calculator). 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.