What is ILOE in the UAE? Everything You Need to Know About Involuntary Loss of Employment Insurance

What happens if you lose your job in the UAE?​
In a country built for ambition, security matters. And while Dubai offers unmatched opportunity, it also leads the region in worker protection, thanks to a nationwide safety net known as ILOE.

Short for Involuntary Loss of Employment Insurance, ILOE is a mandatory UAE insurance scheme that provides short-term financial support to salaried employees who lose their jobs unexpectedly.

Whether you're building your business with Meydan Free Zone or hiring your first employees, understanding how ILOE works helps you stay compliant, protected, and future-ready.

What ILOE Means and Who It Is For

ILOE is a government-backed unemployment insurance plan launched in 2023. It provides up to three months of income to employees who lose their jobs involuntarily, helping them stay afloat while they look for new opportunities.

Key Facts:

• Mandatory for most public and private sector employees (including free zones)
• Applies to employees aged 18–60 with a valid labour contract
• Tied to your Emirates ID, not your employer
• Not automatic, registration and monthly payments are the employee’s responsibility

Note: Business owners, investors, domestic workers, temporary employees, and freelancers on self-sponsorship are exempt from ILOE.

How Much ILOE Costs and What It Covers

The monthly premium depends on your basic salary bracket, and the benefits scale accordingly.

• Benefit: 60% of your average basic salary over the last 12 months
• Coverage duration: Up to 3 months per claim
• Eligibility begins after 12 consecutive months of subscription
• Must be actively registered at www.iloe.ae or via MOHRE-approved channels

Fines for Non-Compliance

Failure to register for ILOE Dubai insurance or keep up with premium payments comes with penalties:

• AED 400 fine for not enrolling before the deadline
• AED 200 fine for missing payments
• These must be cleared before renewing your Emirates ID or applying for future visas

Why ILOE Matters for Entrepreneurs and Employees

Dubai’s pro-business ecosystem is built on balance: opportunity with security. ILOE adds resilience to that foundation.

For employees:

• Provides a safety net during career transitions
• Encourages long-term stability in the private sector

For entrepreneurs:

• Ensures team members are protected
• Reinforces trust and compliance within your business
• Helps maintain operational continuity in dynamic markets

How Meydan Free Zone Helps You Stay ILOE-Ready

While ILOE enrollment is a personal responsibility, Meydan Free Zone helps you meet every requirement that enables eligibility, and keeps your business structure compliant.

When you launch with Meydan Free Zone, you get:

• Trade license in under 60 minutes
• 100% foreign ownership and full profit repatriation
• UAE residency visa processing, including for your team
• Built-in compliance checks (UBO, KYC, CT)
• mPlus support for ongoing admin, visa renewals, and document management

With these in place, your business and your team stay protected, inside a structure designed for long-term growth.

Doing Business with a Safety Net

The ILOE Dubai insurance scheme is more than an insurance policy, it’s part of a bigger vision to build a resilient, inclusive, and future-ready workforce. For founders, it signals a government that values stability. For employees, it’s a lifeline during uncertain times.

At Meydan Free Zone, we give you the structure to succeed in that system, fast licensing, full visa support, and digital compliance tools that keep you protected and focused on growth.

Whether you’re starting solo or building a team, launch your business where innovation and security go hand in hand.

FAQs

1. What is ILOE in the UAE?

ILOE (Involuntary Loss of Employment) is a mandatory insurance scheme that provides financial compensation to eligible employees in the UAE if they lose their job involuntarily. It covers up to 60% of basic salary for a maximum of 3 months.

2. Who is required to register for ILOE insurance?

All salaried employees in the UAE aged 18–60, including those in private and free zone companies, must register for ILOE. Exemptions apply to business owners, domestic workers, temporary staff, and self-sponsored freelancers.

3. How much does ILOE cost per month?

Employees earning AED 16,000 or less pay AED 5 per month. Those earning more than AED 16,000 pay AED 10 per month. Payments can be made monthly, quarterly, or annually.

4. What are the benefits of ILOE insurance?

Eligible employees receive up to 60% of their average basic salary (over the last 12 months) for a maximum of 3 months after involuntary job loss, provided they’ve paid premiums for at least 12 consecutive months.

5. How do I register for ILOE?

You can register for ILOE via www.iloe.ae, the MOHRE app, or approved service channels such as Al Ansari Exchange, Etisalat, and business service centres.

6. What happens if I don’t register for ILOE in the UAE?

Failure to register results in a fine of AED 400. Missing premium payments can lead to an additional AED 200 fine. These penalties must be cleared before renewing your Emirates ID or work permit.

7. Is ILOE linked to your employer or Emirates ID?

ILOE is linked to your Emirates ID, not your employer. This means your coverage continues even if you change jobs, as long as you remain employed and in the UAE.