UAE unveils 3-step guide to renew ILOE insurance

In the latest update to the Involuntary Loss of Employment (ILOE) insurance system, the Ministry of Human Resources and Emiratization (MoHRE) outlined three key steps for renewing the ILOE insurance subscription. The Ministry emphasized the importance of renewal in ensuring career stability and job security for beneficiaries working in both the federal government and private sectors, including citizens and residents. The system provides financial compensation to insured individuals during periods of unemployment, in accordance with specific conditions and eligibility criteria.

Steps to Renew the Subscription:

The Ministry explained that the renewal process involves:

Once the information is verified, users can view the total renewal amount at the bottom of the page. They must then check the box to agree to the terms and conditions before being redirected to the payment link. Upon successful payment, the user will have the option to download or print the insurance certificate and receipt.

The Ministry noted that the same steps can be followed using the ILOE smart application. For assistance, individuals may contact the call center at 600599555. The Ministry also urged all subscribers to adhere to their agreed premium payment schedule.

The ILOE insurance system is divided into two categories:

To qualify for compensation, the insured must have been continuously subscribed for at least 12 months. Claims are not valid if the insured leaves the country or secures a new job. Compensation is disbursed within a maximum of two weeks from the date of a valid claim and is provided for up to three months. Importantly, compensation is not granted in cases of resignation or dismissal for disciplinary reasons.

The compensation amount is calculated at 60% of the employee’s average basic salary over the last six months prior to job loss.

The following groups are excluded from the ILOE system:

The Ministry highlighted the positive impact of the ILOE system as a key component of labor legislation aimed at attracting and retaining skilled Emirati and global talent, and supporting economic sector growth across the UAE.

The ILOE insurance scheme is a unique and innovative job security framework that places no financial burden on employers. It stands out as a global best practice, offering creative solutions to the challenge of funding social security coverage for workers—an issue that is frequently debated on international platforms.

This system reflects the UAE government’s commitment to developing a competitive business environment and reinforces the country’s position as a preferred destination to work and live. International reports consistently show that professionals from around the world are drawn to the UAE due to its strong security, job benefits, quality healthcare and education, and overall high standard of living.

Implemented under Federal Decree-Law No. 13 of 2022, this unique system offers financial protection to employees who lose their jobs—unless the termination is for disciplinary reasons or due to resignation. Eligible employees may receive monthly compensation of up to 60% of their average basic salary over the last six months, for a maximum duration of three months, provided they have been continuously enrolled for at least 12 months.

To avoid the Dh400 fine for not subscribing to the ILOE system, employees in the private sector, federal government, and semi-government entities must enroll within four months from the date of obtaining their work permit.

Additional Details:

The General Pension and Social Security Authority typically imposes a 2% penalty for each month of delay in payment of insurance contributions, starting from the day after the due date.

Example:

If an employer delays payment for three months, a 6% penalty will apply on the total outstanding contribution amount.