UAE Unemployment Insurance: Easy Guide on Subscription and Claims

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Unemployment Insurance Scheme in the UAE

The United Arab Emirates is renowned for its progressive approach towards welfare policies, and the Unemployment Insurance scheme (ILOE) is another innovative step towards ensuring economic security for its citizens and residents. The scheme is an insurance or social security system designed to provide financial support for those who lose their jobs due to termination by their employers. Its principal aim is to sustain a reasonable standard of living for unemployed individuals and cultivate a competitive knowledge economy by attracting and retaining top international talent.

Eligibility Criteria for Unemployment Insurance

The Unemployment Insurance scheme applies to UAE Citizens and Residents employed in both the Federal government and the private sector. However, not everyone falls under the umbrella of this protective scheme. It does not cover certain categories of workers:

  • Investors and business owners who manage their own businesses
  • Domestic workers
  • Employees working on a temporary basis
  • Juveniles under the age of 18
  • Retirees who are receiving a pension and have subsequently joined a new employer

Understanding Subscription Fees and Cash Compensation

The scheme has a simple structure with two categories based on the worker’s basic salary:

  1. Workers with a basic salary of AED 16,000 or less will pay a monthly insurance premium of AED 5, totaling to AED 60 annually. Their compensation must not exceed AED 10,000 per month.
  2. Workers with a basic salary exceeding AED 16,000 will have to pay AED 10 per month, equating to AED 120 annually. The compensation for these individuals must not exceed AED 20,000 monthly.

Necessary Documents for Enrollment

To subscribe to this scheme, individuals must possess their Emirates ID or Unified Number along with a valid UAE mobile number.

Flexible Payment Options

Payment options for the insurance premiums are highly flexible, allowing workers to pay on a monthly, quarterly, half-yearly, or annual basis, depending on what best suits their financial circumstances.

Subscribing to the Unemployment Insurance Scheme

The subscription process has been streamlined through multiple channels including the ILOE portal (, ILOE app, Al Ansari Exchange, SMS, Bank Apps and Kiosks (UPAY), and ATMs (C3 PAY).

Filing a Compensation Claim

When it comes to claiming compensation, workers must submit their claim within 30 days from the date of unemployment. This can be done through the insurance pool’s e-portal, smart application or call center. After receiving the claim, the insurance company has two weeks to transfer the compensation to the insured’s account. To be eligible for the compensation, workers must have paid the monthly premium for at least 12 consecutive months.

The insurance providers are mandated to process claims in accordance with the terms and conditions of the insurance policy and the applicable legislations of the Central Bank of the UAE. Compensation will be paid from the date the worker loses their job and will be paid for three months or until the worker finds a new job, whichever comes first.

Suspension of Compensation

In certain circumstances, the insured worker might lose their eligibility for compensation. These include:

  • Dismissal from work for disciplinary reasons under the UAE’s Labor Law in the private sector (Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relationship and its amendments) and the Human Resources Law in the federal government, in addition to any applicable legislations.
  • Fraud or deceit involved in the claim.
  • Employment in a fictitious establishment.


The UAE’s Unemployment Insurance scheme is an innovative and vital step towards ensuring financial security and stability for its workers, thereby further enhancing its reputation as a nation that values and prioritizes the welfare of its residents and citizens.

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About M. AMEEN

Mohammed Ameen is a passionate blogger, writing since 2012 about expat life in the Middle East. His posts offer practical tips, guides, and keen observations to help fellow expats navigate life in the Middle East.