When ILOE compensation stops in the UAE and what affects your eligibility
The key rules, limits and situations that end ILOE compensation
Dubai: The UAE’s Involuntary Loss of Employment (ILOE) insurance scheme provides temporary financial support to private sector and federal government employees who lose their jobs due to termination, not resignation. The scheme is designed to offer short-term income protection while individuals look for new employment.
Here is how the system works, when payouts stop, and what affects your eligibility.
When you can start claiming ILOE compensation
You can only claim unemployment insurance after completing at least 12 months from the date you subscribed to the scheme. This means you must be continuously enrolled and paying premiums for a full year before becoming eligible for compensation.
When unemployment insurance payouts stop
The insurer’s obligation to pay compensation ends in specific situations. These include:
Reaching the maximum payout limit within a single insurance certificate period, which is three months of compensation
Reaching the overall maximum of 12 months of compensation across all insurance certificates during your employment in the UAE
The death of the insured person, with coverage ending from the date of death
Compensation also stops if you find a new job or leave the country, even if the three-month payout period has not been completed.
How much compensation you can receive
The payout is calculated as 60 per cent of your average monthly basic salary during the 12 months before job loss. The amount you receive depends on your salary category and is subject to caps.
Category A: Basic salary of Dh16,000 or less
Maximum monthly compensation: Dh10,000
Category B: Basic salary above Dh16,000
Maximum monthly compensation: Dh20,000
Payments are made for up to three months per claim, or until you secure new employment or exit the UAE, whichever happens first.
Eligibility requirements for ILOE
To qualify for compensation under the scheme, you must:
Be subscribed to the unemployment insurance scheme for at least 12 consecutive months before job loss
Have paid all insurance premiums in full and on time, according to your payment schedule
Have lost your job due to termination, not resignation
You are not eligible if you resigned, were dismissed for disciplinary reasons, absconded, or submitted fraudulent claims.
When and how to file a claim
You must submit your claim within 30 days of your employment contract ending, or within 30 days of the resolution of any related labour dispute decided by a court. Claims must be filed through the official ILOE website.
