The United Arab Emirates' Involuntary Loss of Employment (ILOE) insurance scheme provides short-term income support to private sector and federal government workers who lose their jobs through termination, not resignation. The scheme is designed to offer a financial cushion while workers search for new employment.
Eligibility Requirements for ILOE Compensation
To qualify for ILOE compensation, a worker must have been continuously subscribed to the scheme for at least 12 months before losing their job. All premiums must have been paid in full and on time. Crucially, the job loss must result from termination rather than voluntary resignation.
The scheme explicitly excludes workers who leave voluntarily. Those who resigned, were dismissed for disciplinary reasons, absconded, or filed fraudulent claims are not entitled to any compensation under the ILOE program.
Compensation Amounts and Salary Categories
Once eligible, compensation is set at 60 per cent of the average basic monthly salary earned during the 12 months before job loss. The amount is subject to a cap based on the worker's salary band.
Workers earning a basic salary of Dh16,000 or less fall under Category A, with a maximum monthly payout of Dh10,000. Those earning above Dh16,000 fall under Category B and can receive up to Dh20,000 per month.
Payment Duration and Termination Conditions
Payments run for a maximum of three months per claim. However, payments stop immediately if the worker finds a new job or leaves the UAE, even if the three-month window has not yet closed.
The insurer's obligation to pay compensation ends under several conditions. These include hitting the three-month payout ceiling within a single insurance certificate period, reaching a lifetime maximum of 12 months of compensation across all insurance certificates held during a worker's time in the UAE, or the death of the insured person.
Claim Filing Process and Deadlines
Claims must be submitted within 30 days of the employment contract ending. Where a labour dispute was involved, the 30-day window begins from the date a court resolves the matter. All claims are filed through the official ILOE website.
Understanding these thresholds is important for workers who may have claimed benefits in previous periods, as the 12-month lifetime cap applies cumulatively across all certificates, not just the current one. Workers should track their claim history carefully to avoid exceeding the lifetime limit.
