The Ultimate Guide to ILOE Insurance in the UAE

The Involuntary Loss of Employment (ILOE) Insurance is a mandatory initiative introduced by the UAE government to safeguard employees against unforeseen job loss. This employment insurance ensures that individuals who experience involuntary loss of employment receive temporary financial support. It allows them to manage their expenses while searching for new opportunities. The ILOE insurance UAE program applies to private and federal sector employees, ensuring a smooth transition during career setbacks.

With the ILOE’s last date for subscription already set, it is crucial for employees to enrol on time to avoid penalties. Many individuals are still unaware of how to pay ILOE insurance online and the ILOE insurance renewal process. In this blog, we will explore the ILOE meaning, eligibility criteria, benefits, subscription process, and penalties for non-compliance. Additionally, we will cover important details such as Dubai insurance ILOE options, ILOE contact number, and how to handle disputes effectively.

What is ILOE Insurance?

ILOE insurance UAE is a government-mandated unemployment insurance scheme that provides financial support to employees who lose their jobs due to reasons beyond their control.

The Involuntary Loss of Employment (ILOE) insurance helps employees receive a portion of their salary for a limited period. It ensures they can meet their financial commitments while seeking new employment opportunities.

The insurance plan categorises employees into two groups based on their salary:

• Category 1: Employees earning AED 16,000 or less must pay an insurance premium of AED 5 per month (or AED 60 annually).
• Category 2: Employees earning above AED 16,000 must pay AED 10 monthly (or AED 120 annually).

The compensation offered through IOLE insurance covers 60% of the employee’s average basic salary for up to three months from the termination date.

This system is designed to provide employees with much-needed financial stability during unemployment, reducing the stress of job transitions while ensuring a strong job market.

What Does ILOE Cover?

Involuntary Loss of Employment (ILOE) insurance provides financial support to employees who lose their jobs for reasons beyond their control. The coverage ensures temporary financial stability, helping individuals manage expenses while searching for new opportunities.

Coverage Includes:

• Job loss due to redundancy, layoffs, or employer bankruptcy.
• Financial compensation of up to 60% of the employee’s basic salary for a period of three months.
• Seamless claim processing, ensuring quick access to financial aid.
• Support for employees in both private and public sectors (subject to eligibility criteria).

Exclusions: What ILOE Does Not Cover:

• Voluntary resignation or leaving the job by choice.
• Termination due to misconduct, disciplinary actions, or legal violations.
• Employees on temporary, part-time, or freelance contracts (only full-time employees are eligible).
• Business owners, investors, and domestic workers (maids, nannies, etc.).

Job loss caused by external factors, including:

• War, civil unrest, or acts of terrorism.
• Natural disasters (earthquakes, floods, etc.).
• Pandemics or government-imposed shutdowns.

Additional Considerations:

• Employees must have been enrolled in the ILOE scheme for at least 12 consecutive months to qualify for benefits.
• Claims must be submitted within 30 days of job loss, and applicants must actively seek new employment during the compensation period.
• The coverage does not replace a full salary but is a temporary safety net to help manage essential expenses. 

By understanding the scope and limitations of ILOE, employees can make informed decisions and ensure compliance with UAE labour laws.

Who Needs to Subscribe to ILOE Insurance?

The ILOE insurance UAE program is mandatory for all employees working in the private and federal sectors. Regardless of nationality, employees must subscribe to ILOE UAE before the last date for unemployment insurance in the UAE to avoid penalties. However, some individuals are exempt from this requirement, including:

• Business owners and investors who own and manage their companies.
• Domestic workers such as housemaids, drivers, and personal assistants.
• Employees under the age of 18 years.
• Retired individuals receiving a pension are still employed.

Failing to enrol before the ILOE last date will result in the imposition of ILOE quick pay fines and other penalties. Additionally, not subscribing may affect employees’ ability to renew their work permits.

Subscription Options for ILOE Insurance

The Involuntary Loss of Employment (ILOE) Insurance is a mandatory scheme in the UAE that provides financial support to employees in case of job loss. Subscribing to the ILOE insurance is a simple process, and individuals can choose from various convenient platforms to register and make payments.

ILOE Portal

The official ILOE Portal is the primary platform for subscribing to the scheme. Users can visit the website, provide their details, and make payments online, ensuring a seamless and secure registration process.

MOHRE App

The Ministry of Human Resources and Emiratisation (MOHRE) App offers another efficient way to subscribe. The app provides direct access to ILOE insurance registration and allows employees to track their employment-related benefits.

Al Ansari Exchange

Al Ansari Exchange branches across the UAE facilitate ILOE insurance registration for those who prefer offline payment options. Employees can visit any outlet and complete their subscription with the help of customer service representatives.

Bank Apps (e.g., C3Pay, Botim)

Many banks and financial service providers, such as C3Pay and Botim, offer ILOE subscription services through mobile applications. This allows individuals to register conveniently via their banking platforms.

SMS (Etisalat)

Subscribers can also register for ILOE insurance via SMS through Etisalat. This method simplifies the process by allowing users to complete their registration with just a few text messages.

Kiosks (MBME Pay)

Self-service kiosks like MBME Pay enable users to subscribe to ILOE insurance easily. These kiosks are located in various malls, metro stations, and public places, making them a convenient choice for quick registration.

Insurance Brokers

Licensed insurance brokers in the UAE also facilitate ILOE subscriptions. Employees can consult these brokers to understand their coverage options and complete enrolment.

By offering multiple subscription options, the UAE ensures employees can enrol in ILOE insurance easily, securing financial protection in case of unexpected job loss.

How to Pay ILOE Insurance Online

To pay for Involuntary Loss of Employment (ILOE) Insurance online in the UAE, follow these steps:

Method 1: Through the ILOE Official Website

1. Visit the ILOE Portal: https://www.iloe.ae
2. Click on ‘Subscribe’ and enter your Emirates ID number.
3. Verify Details: Your employer and job category will be auto-filled.
4. Choose Your Plan: Select the appropriate coverage based on your salary bracket:
5. Category A: Salary ≤ AED 16,000 (AED 5/month)
6. Category B: Salary > AED 16,000 (AED 10/month)
7. Select Payment Mode: Choose monthly, quarterly, semi-annual, or annual payments.
8. Proceed to Payment: Pay using a debit/credit card.
9. Confirmation: You will get an email with the policy details.

Method 2: Through the MOHRE App

1. Download & Open the MOHRE App (Available on iOS & Android).
2. Log in using your UAE Pass or Emirates ID.
3. Go to Services > ILOE Insurance.
4. Select Your Plan and Payment Mode.
5. Pay Online and Receive Confirmation. 

Method 3: Through Bank Apps & Exchange Centres

• Many UAE banks allow ILOE payments through their mobile apps.
• Payment can also be made at Al Ansari Exchange and other authorised payment centres.

Method 4: Through SMS or Kiosk Machines

• Some telecom providers (Etisalat, Du) offer SMS-based payments.
• You can also use the self-service kiosks available in malls and government centres.

Note: ILOE insurance is mandatory for employees in the UAE, and failure to subscribe may result in fines. To avoid penalties, always ensure timely renewal.

ILOE Deadline/Last Date in UAE

The UAE government has set a strict ILOE last date for employees to subscribe to the ILOE insurance payment plan. The final deadline for registration is October 1, 2023. Employees who fail to register by this date will be subject to penalties and potential restrictions on employment services. 

To ensure compliance, employees should complete their ILOE insurance UAE subscription process before the deadline. If you miss the unemployment insurance UAE last date, you may be required to pay an ILOE quick pay fine or face employment restrictions that could affect your future job prospects.

Why is ILOE Insurance Important?

The ILOE insurance program in the UAE is essential for employees who experience involuntary loss of employment. Here’s why it is important:

• Financial Security: It offers temporary income to help employees cover essential expenses like rent, groceries, and utility bills.
• Job Market Stability: Reduces economic stress and allows employees to focus on finding new jobs.
• Affordable Protection: Employees can secure insurance in the UAE without financial strain by paying a minimal monthly premium.
• Legal Compliance: Failure to register results in fines and possible work permit restrictions.
• Economic Growth: Encourages workforce stability, benefiting both employees and employers.

Penalties for Non-Compliance with Insurance Regulations

To ensure compliance with mandatory insurance regulations in the UAE, individuals and businesses must adhere to specific guidelines. Failure to comply can result in financial penalties, legal consequences, and restrictions on work permits and visa renewals. Below are the key penalties for non-compliance:

Non-Subscription to Mandatory Insurance

Individuals or companies that fail to subscribe to the required insurance policies, such as health or unemployment insurance, are subject to a fine of AED 400. This penalty is imposed to encourage compliance with the country’s labour and social security regulations.

Late Premium Payments

If insurance premiums are not paid on time, a fine of AED 200 will be levied. Additionally, if the delay extends beyond 90 days, the insurance policy will be automatically cancelled, leaving the individual or business without coverage. This could result in further legal or financial complications, especially in cases requiring medical treatment or compensation claims.

Fraudulent Claims

Engaging in fraudulent activities related to insurance claims—such as providing false information, exaggerating losses, or submitting fake documents—can lead to legal action. Offenders may face criminal charges, hefty fines, and potential imprisonment, depending on the severity of the fraud. The UAE has strict regulations to prevent insurance fraud and safeguard the integrity of the system.

Work Permit and Visa Restrictions

Non-compliance with insurance regulations can directly impact an individual’s work permit renewal and visa status. Authorities may refuse to renew work permits for employees or issue fines to employers who fail to provide the required insurance coverage for their workforce. This can result in employment disruptions, legal complications, and potential deportation in extreme cases. 

It is crucial for individuals and businesses operating in the UAE to adhere to insurance regulations to avoid these penalties and ensure uninterrupted access to essential services and legal work authorisations.

How to Subscribe to ILOE Insurance?

The Involuntary Loss of Employment (ILOE) insurance is a mandatory scheme under Federal Decree-Law No. 13 of 2022, designed to provide financial support to employees in the UAE who unexpectedly lose their jobs. To ensure coverage under the ILOE insurance scheme, follow these detailed steps:

Verify Your Eligibility

Before proceeding with enrolment, confirm that you are eligible for ILOE insurance. Specific individuals are exempt from this scheme, including:

• Business owners and investors who manage their companies.
• Domestic workers employed in private households.
• Employees under the age of 18.
• Retired individuals who receive a pension and have re-entered the workforce.

If you fall outside these categories, you are required to enrol in the scheme to avoid penalties.

Choose the Right Insurance Category

The ILOE insurance scheme categorises employees into two groups based on their monthly salary:

• Category A: Employees with a basic salary of AED 16,000 or below must pay a monthly premium of AED 5 (plus VAT).
• Category B: Employees earning above AED 16,000 must pay a monthly premium of AED 10 (plus VAT).

Policyholders can discuss additional benefits or higher coverage with the insurer, as Article 11 of Cabinet Decision No. 97/2022 outlines.

Select Your Enrolment Method

There are multiple ways to subscribe to ILOE insurance, ensuring flexibility and ease of access:

• Official ILOE Portal & Mobile App: The quickest way to enrol is by visiting the ILOE official website or downloading the ILOE app from the Apple App Store or Google Play Store. Use your Emirates ID and contact details to register and complete the subscription process.
• Banking Channels: Certain UAE banks provide enrolment options for their customers, allowing direct deductions from your account.
• Exchange Centres & Kiosks: Employees can make payments at exchange houses and self-service kiosks located across the UAE.
• Telecom Operators & Service Providers: Select telecom and authorised service providers also facilitate ILOE insurance enrolment.

Select Your Payment Plan

Once enrolled, you must choose your payment schedule:

• Monthly, Quarterly, Semi-Annual, or Annual Payments: Employees can decide the most convenient frequency for paying their premiums.
• One-Year or Two-Year Subscription: You can opt for a one-year or a two-year insurance plan.
• Multiple Payment Channels: You can make payments through the ILOE website, mobile app, exchange centres, ATMs, banks, or approved service centres.

All payments include VAT and must be made on time to ensure uninterrupted coverage.

Obtain Your Insurance Certificate

Upon successful subscription, you will receive a Certificate of Insurance as proof of enrolment. This certificate can be downloaded from the ILOE website or mobile app. A digital or printed copy should be kept for future reference.

Maintain Your Coverage & Compliance

To ensure continuous protection under the ILOE scheme, adhere to the following requirements:

• Make Timely Payments: Failure to pay your premiums on time may lead to fines and cancellation of coverage.
• Keep Employment Details Updated: If your job status changes, update your details through the ILOE portal.
• Avoid Penalties: Employees who fail to subscribe or maintain their policy may be subject to fines imposed by UAE authorities.

Benefits & Claim Process

If you lose your job involuntarily, you may qualify for financial compensation under ILOE. The key benefits include:

• Monthly compensation for up to three months, depending on your category.
• You can initiate the claim process through the ILOE website or app within 30 days of job loss.
• You must complete a 12-month waiting period from the date of enrolment before filing your first claim.

For a detailed breakdown of claim procedures, visit the ILOE official website or contact their support centre.

By ensuring timely enrolment and premium payments, you can safeguard yourself against unforeseen employment disruptions and benefit from the financial security provided by the ILOE insurance scheme.

How to Claim Your UAE ILOE Insurance?

In the event of involuntary loss of employment, employees can file a claim to receive their entitled compensation. Follow these steps:

Step 1: Check Eligibility

Before submitting a claim, ensure that you meet the eligibility criteria. You must have subscribed to the Involuntary Loss of Employment (ILOE) insurance scheme for at least 12 consecutive months.

Your job loss must be involuntary, meaning your employer must have laid you off rather than you resigning or being dismissed due to misconduct. Additionally, your last employer must have been a registered entity, and you should not have an ongoing employment dispute.

Step 2: Gather Required Documents

You will need a set of essential documents to process your claim smoothly. These include your Emirates ID for identity verification, a termination letter from your previous employer stating the reason for job loss, proof of salary such as bank statements or pay slips, and premium payment records to confirm that your insurance was active before termination. Make sure all documents are valid and up to date to avoid any delays in processing your claim.

Step 3: Submit Your Claim

Once your documents are ready, you can file your claim through multiple convenient channels. The claim can be submitted via the official ILOE portal, the mobile app, or by reaching out to the call centre. 

Ensure you upload all required documents and fill out the claim form accurately. Double-checking your submission can prevent unnecessary delays or rejections.

Step 4: Await Approval

After you submit your claim, the review process begins. The insurer will assess your eligibility and verify the provided documents. Claims are typically processed within 14 days. However, the insurer may request additional documents or clarifications in some cases, so you should check for any notifications.

Step 5: Receive Benefits 

Once your claim is approved, you will start receiving your insurance benefits. You will receive payments every month for up to three months, helping you financially while you look for new job opportunities. The amount depends on your last drawn salary, ensuring temporary financial stability during your transition.

How to Resolve ILOE Disputes

If you encounter issues with your Involuntary Loss of Employment (ILOE) insurance claim, follow these steps to ensure a fair resolution.

1. Contact the Insurance Provider: Start by reaching out to Dubai Insurance or the ILOE call centre for clarification and resolution.
2. File a Formal Complaint: If the issue persists, submit a dispute through the ILOE portal or mobile app.
3. Seek Legal Advice: Consult a legal expert to understand your rights and explore possible solutions.
4. Escalate to MOHRE: If unresolved, escalate the matter by filing a complaint with the Ministry of Human Resources and Emiratisation (MOHRE).
5. Pursue Legal Action: As a last resort, take the dispute to the UAE courts for a final verdict.

Real-Life Example: How ILOE Supports Employees

Losing a job unexpectedly can be stressful, but the Involuntary Loss of Employment (ILOE) scheme helps ease financial pressure by providing temporary income support. Here’s how it works in a real-life scenario:

Scenario:

Sarah, a Dubai marketing professional, has worked at a multinational company for five years. She earns a basic monthly salary of AED 15,000. Unfortunately, the company downsizes and lays her off.

ILOE Benefit:

Since Sarah has been contributing to the ILOE scheme, she qualifies for compensation. The scheme provides 60% of her basic salary for up to three months. This means she receives:

• AED 9,000 per month for three months (60% of AED 15,000)
• A total of AED 27,000 in financial support during her job search

How ILOE Helps Sarah:

• Covers essential expenses like rent, groceries, and utilities
• Reduces her financial stress while she searches for a new job.
• Gives her time to find a role that aligns with her skills and career goals

Without ILOE, Sarah might have struggled to manage her finances while looking for a new job. This safety net ensures employees can maintain financial stability even in challenging times. 

Tip: Employers can educate their workforce on the importance of ILOE, helping employees feel more secure in uncertain economic conditions.

Government Awareness Campaigns

The UAE government has proactively educated employees about the Involuntary Loss of Employment (ILOE) scheme, ensuring they understand its benefits and how to enrol. Several initiatives have been launched to raise awareness and promote participation.

MOHRE Awareness Campaigns

The Ministry of Human Resources and Emiratisation (MOHRE) has conducted nationwide awareness campaigns to inform employees about ILOE. These include:

• Public announcements and advertisements across TV, radio, and social media.
• Direct communication through SMS and email reminders.
• Collaboration with businesses to educate employees on the importance of ILOE.

Online Resources and Government Guides

To make information accessible, the UAE government has provided:

• Official websites (MOHRE, ILOE portal) with step-by-step enrolment guides.
• Frequently Asked Questions (FAQs) to address common employee concerns.
• Educational videos and infographics simplifying how the scheme works.

These efforts ensure that both employees and employers are well-informed, making it easier to enrol and benefit from ILOE when needed. By highlighting these initiatives, you can showcase the government’s commitment to supporting workers’ financial security.

Ensure Financial Security: Subscribe to ILOE Insurance UAE on Time

Subscribing to ILOE insurance in the UAE is a legal requirement and a crucial step toward financial stability. It ensures employees receive compensation for involuntary loss of employment, allowing them to navigate career transitions smoothly. Avoid ILOE quick pay fines by completing your ILOE insurance payment on time and ensuring ILOE renewal before expiry.

For more details or assistance, call +97144081900 or WhatsApp 971507775554. You can also email us at [email protected] for prompt support!

Common Questions and Answers About ILOE Insurance

*Note: The information in this post is for general guidance only and may change due to updates in government policies or regulations.