All About ILOE Insurance in the UAE

ILOE insurance in the UAE is an important financial protection for workers who lose their jobs suddenly, like when a company downsizes. This insurance is for everyone working in the UAE, both citizens and people from other countries. It helps by giving money based on what the employee usually earns. It is a rule that companies have to follow, so employees do not have to worry about money if they are out of work. It also makes the job market more appealing and helps keep the economy stable.

We are here to help you learn about ILOE insurance. We will explain what it covers, why it is good for businesses, how much it might cost, and how to ask for benefits if you need them. Our goal is to make sure you know about this important protection for UAE businesses, so you can feel secure that your business is protected from sudden stops in work.

What Is ILOE Insurance in the UAE?

ILOE Insurance in the UAE is a financial protection program for employees who lose their jobs due to reasons beyond their control, such as company layoffs, but not for disciplinary actions or resignations. It is available to both Emirati and expatriate workers across various sectors.

The insurance offers a monthly cash benefit of up to 60% of the employee’s average basic salary from the last six months before the job loss. This benefit is provided for a maximum of three consecutive months per claim, as long as the worker has paid the monthly premium for at least 12 consecutive months.

The program is divided into two categories based on the employee’s basic salary:

• Category A: For salaries of AED 16,000 or below, the monthly premium is AED 5 plus VAT, and the compensation benefit can be up to AED 10,000 per month.
• Category B: For salaries above AED 16,000, the monthly premium is AED 10 plus VAT, with a compensation benefit of up to AED 20,000 per month.

The policy period can be for one or two years, and the full VAT amount is added to the first installment/payment. Workers can subscribe to the scheme via the ILOE Insurance Pool website, its app, or other channels announced by the Ministry of Human Resources and Emiratisation (MoHRE).

How Much Does ILOE Insurance Cost?

The cost of ILOE Insurance in the UAE depends on the employee’s salary. Here are the details:

• Category A (Basic Salary AED 16,000 or below):Monthly insurance premium: AED 5 (equivalent to AED 60 annually).
• Maximum compensation benefit: AED 10,000 per month.
• Maximum consecutive months for a claim: 3 months.
• Category B (Basic Salary Above AED 16,000):Monthly insurance premium: AED 10 (equivalent to AED 120 annually).
• Maximum compensation benefit: AED 20,000 per month.
• Maximum consecutive months for a claim: 3 months.

Workers can choose to pay the premium monthly, quarterly, half-yearly, or annually. The insurance period can be for 1 year or 2 years, and the full VAT amount is added to the first installment/payment.

What Does ILOE Insurance Cover?

ILOE Insurance in the UAE provides essential coverage for employees who face unexpected job loss due to circumstances beyond their control. Here are the key aspects of what it covers:

Financial Safety Net:

• ILOE (Involuntary Loss of Employment) insurance acts as a financial safety net for workers who experience sudden unemployment due to reasons such as company layoffs or redundancy.
• It ensures that employees are not left vulnerable during periods of job loss.

Eligibility:

• The insurance scheme caters to both UAE nationals and expatriates working in various sectors.
• To be eligible, workers must have paid the monthly premium for at least 12 consecutive months.

Compensation Benefit:

• The insurance offers a monthly cash benefit based on a percentage of the employee’s average basic salary from the last six months before job loss.
• Category A: For salaries of AED 16,000 or below, the maximum compensation benefit is AED 10,000 per month.
• Category B: For salaries above AED 16,000, the maximum compensation benefit is AED 20,000 per month.

Claim Process:

• Workers can claim benefits for a maximum of three consecutive months after losing their job.
• The claim process involves submitting relevant documents to the ILOE Insurance Pool via their website, app, or other authorized channels.

Economic Stability and Job Market Attractiveness:

By providing this mandatory insurance, the UAE aims to enhance economic stability and make the job market more appealing to both local and international talent.

How Do I Get an ILOE Certificate?

To get an ILOE (Involuntary Loss of Employment) Certificate, you need to follow these steps:

• Visit the official ILOE website.
• Subscribe or renew your policy through the ILOE Portal.
• If you are eligible, you can submit your claim for compensation if you have lost your job due to reasons other than disciplinary action or resignation.
• Ensure you have paid the monthly premium for at least 12 consecutive months to be eligible for the claim.
• You can also find a user manual on the ILOE Portal that guides you through the process.

People May Ask

What is ILOE Insurance?

ILOE Insurance is a special program in the UAE that gives money to workers who lose their jobs but not because they quit or did something wrong.

Do I have to join the ILOE Insurance?

Yes, if you work in the private sector or for the federal government in the UAE, you need to have this insurance.

What happens if I do not pay for the ILOE Insurance?

If you do not pay the insurance fee for more than 3 months, your policy will be canceled, and you might have to pay a fine.

Can I join again if my ILOE Insurance is canceled?

Yes, you can start a new insurance policy if your old one gets canceled because you did not pay.

How much money can I get from ILOE Insurance?

You can get up to 60% of your average basic salary from the last 6 months before you lost your job. The maximum amount you can get each month depends on your salary.

How long can I get money from ILOE Insurance?

You can get money for up to 3 months for each time you lose a job.

What if I work on commission?

If you earn money based on commission, you can choose which category you fit into for the insurance if your basic salary is not fixed.

How do I ask for money from ILOE Insurance?

You can ask for money through the ILOE portal, their mobile app, or by calling their help center.