The UAE is globally recognized for its forward-thinking, employee-friendly policies. One of the most significant safety nets introduced in recent years is the unemployment insurance UAE scheme.
Launched by the Ministry of Human Resources and Emiratization (MoHRE), the Involuntary Loss of Employment (ILOE) scheme provides a vital layer of financial security. If you lose your job unexpectedly, this insurance ensures you receive a cash buffer for up to three months, giving you the breathing room to find your next opportunity without immediate financial panic.
Whether you are a new expat or a long-term resident looking to renew your policy, understanding the rules is critical. In this guide, we’ll walk you through everything you need to know about the UAE unemployment insurance scheme—including current costs, eligibility criteria, how to avoid fines, and exactly how to claim your cash benefits.
Let’s dive in.
What is the ILOE Scheme?
The unemployment insurance scheme applies to almost all workers in the UAE, including Emiratis and foreign residents in both the private and federal government sectors. While it was initially rolled out with strict deadlines back in 2023, it remains a mandatory requirement today for obtaining and renewing work permits.
The Core Benefit:
If you lose your job due to termination (not resignation), you are entitled to a cash payment equal to 60% of your basic salary. This is paid for a maximum of three months from the date of unemployment.
Important Note: To qualify for the payout, you must have been subscribed to the scheme for at least 12 consecutive months. This makes timely renewal essential—if your policy lapses, your 12-month counter might reset.
Subscription Plans and Costs
MoHRE has kept the premiums incredibly affordable to ensure everyone can access this protection. The scheme is divided into two categories based on your basic salary.
Category A: Basic Salary of AED 16,000 or Less
- Premium Cost: AED 5 per month (AED 60 annually).
- Maximum Benefit: Up to AED 10,000 per month.
- Total Max Payout: AED 30,000 (over 3 months).
Category B: Basic Salary Above AED 16,000
- Premium Cost: AED 10 per month (AED 120 annually).
- Maximum Benefit: Up to AED 20,000 per month.
- Total Max Payout: AED 60,000 (over 3 months).
Tip: You can choose to pay these premiums monthly, quarterly, semi-annually, or yearly. However, paying the full annual amount (AED 60 or AED 120) in one go is often easier to avoid missing a payment and incurring fines. Note that VAT applies to these payments.
Who is Exempt from Mandatory Subscription?
While the UAE unemployment insurance is compulsory for the vast majority of the workforce, there are specific exceptions. You are not required to subscribe if you fall into these categories:
- Business owners and investors (who own the establishment).
- Domestic helpers/household employees.
- Temporary workers on short-term contracts.
- Juveniles under 18 years of age.
- Retirees who receive a pension and have joined a new employer.
How to Subscribe and Renew Online & Offline
To make compliance easy, the government offers multiple channels for registration and payment. Whether you prefer digital apps or visiting a counter in person, here is how you can apply.
1. The ILOE Official Website & App (Most Recommended)
This is the fastest method and takes less than 5 minutes.
- Visit the ILOE Portal or download the ILOE App.
- Select “Subscribe Here” and choose your sector (Private, Federal, or Freezone).
- Enter your Emirates ID and mobile number to request an OTP.
- Once logged in, the system automatically assigns you Category A or B based on your MoHRE records.
- Select your payment frequency (Annual is recommended to avoid lapses).
- Pay via credit/debit card. You will receive your insurance certificate via email immediately.
2. SMS (For Etisalat Users)
You can subscribe via text message:
- Type: “ID” [Space] “Your Emirates ID Number”
- Send to: 2120
- Note: Costs are deducted from your prepaid balance or added to your postpaid bill.
3. Other Payment Channels
If you prefer not to use the main portal, you can also subscribe via:
- Kiosk Machines: Look for Upay or MBME Pay kiosks in malls and business centers.
- Exchange Centers: Visit any Al Ansari Exchange. Bring your Emirates ID and mobile number.
- Bank Apps: Select banking apps (like C3Pay) have direct integration.
- BOTIM App: Navigate to the “Explore” page and select ILOE.
Kiosk Machines
Employees can also register for unemployment insurance UAE by using official kiosk machines of Upay or MBME Pay. These machines are present at several locations in UAE, which can be located easily through phones.
Phone – ILOE Call Center
If you are not a tech-friendly person, you can directly call the ILOE call center and get your unemployment insurance UAE without any hassle. Here’s how
- Dial the official call center number of ILOE 600 599 555
- Choose language. You’ll be given instructions to perform different actions. Choose the option to talk to the agent (press 3)
- The agent will require the following information for your subscription
Emirates ID, Email, Phone Number, Full Name, DOB, and your labor card or work permit number
The labor card number is assigned officially by MOHRE to all workers in UAE. If you don’t know yours, you can find it by downloading and logging into the MOHRE App. People who work in the free zone may get this number from their respective authorities
- Once details are provided, the agent will access your employment details, including your salary, company, and designation. You’ll be informed of the insurance category you fall in based on your salary amount
- Next, you’ll be asked to choose your preferred payment plans. You can choose to pay your premium monthly, after 3 months, after 6 months or after 1 year
- After that, you’ll receive an email from ILOE containing a payment link and insurance details
- Navigate to the Pay Now tab in the email. It will lead you to the payment page, where you can enter your card details to transfer your premium amount online
- After some time, you’ll receive a payment confirmation email with the official insurance certificate attached
Only selected bank apps and ATMs under the insurance pool companies can be used to purchase job loss insurance in the UAE. One such app is C3PAY by Edenred. If you have a C3 Pay card or account, you can buy your unemployment insurance UAE subscription by using the C3 Pay App as follows.
- Install C3Pay mobile application Android, iOS
- Log in using your UAE phone number and password
- You’ll see the job loss insurance section on the home page. Click on the get insurance button under it
- Choose your payment option and press next. It can be monthly or yearly on the C3PAY app
- Accept terms and conditions. A summary of your payment will show up. Review it and click on Pay Now
- Your insurance charges will be paid, and you’ll get a confirmation notification on your phone number within 48 hours
Al Ansari Exchange Centers and Businessmen Service Centers
Employees can also visit MOHRE-approved exchange centers and service centers in person to get subscriptions to their relevant job loss insurance programs and pay their pending installments. However, note that you must take your Emirates ID and phone number details with you when you go to the centers. The representative there will fill out the insurance form on your behalf and get you registered as per your desired payment plans.
To locate an al Ansari exchange center near you, Click Here
To find a nearby Businessmen service center, Click Here.
BOTIM App
You can also use BOTIM App to sign up for ILOE insurance services. Here’s how.
- Download BOTIM application from Playstore or Appstore
- Open the application, go to the ILOE insurance section under the Explore Page
- Provide your email address and Emirates ID number. You’ll be automatically given the insurance category based on your job details
- Go to the payment page to submit your subscription charges online through BOTIM
Deadlines, Fines, and Updates (2026)
Strict adherence to deadlines is vital. The unemployment insurance UAE last date for initial registration was back in October 2023. Since then, the focus has shifted to ongoing compliance and timely renewals.
Current Fines Structure
- Non-Subscription Fine: AED 400. If you have never registered, or if a new employee fails to register within their grace period (usually 4 months from visa issuance), this fine applies.
- Payment Default Fine: AED 200. If you are registered but fail to pay your insurance premiums for more than three months, your policy is cancelled, and you incur this penalty.
Consequences of Unpaid Fines:
If you fail to settle these fines within three months of the due date, the amount may be deducted from your salary or end-of-service gratuity (Clause 4, Article 9, Ministerial Resolution No. 604). Furthermore, you will be blocked from obtaining a new work permit until compliant.
How to Claim Your Money
If the unfortunate happens and you lose your employment, the UAE unemployment insurance scheme is designed to help quickly.
Eligibility to Claim
- You must have been insured for 12 continuous months.
- You must submit the claim within 30 days of job loss.
- The dismissal must not be for disciplinary reasons or resignation.
- You must be legally present in the UAE.
Steps to File a Claim
- Visit the ILOE portal or app.
- Select “Submit a Claim.”
- Upload required documents (termination letter, visa cancellation paper, etc.).
- Once approved, funds are transferred to your bank account within two weeks.
Important: If you find a new job during the compensation period, the payments will stop immediately.
Conclusions
The unemployment insurance UAE program has matured into a seamless part of working life in the Emirates. It is not just a mandatory fee; it is a genuine safety net that protects your livelihood. By costing less than the price of a coffee per month, it offers significant peace of mind.
Ensure your subscription is active, keep your contact details updated with MoHRE, and if you are ever in doubt, check your status on the ILOE app today.
Link to a guide on “Understanding UAE Gratuity Calculation” or “How to Check Your UAE Labour Ban Status” here for related reading.
FAQ Schema-ready Q&A
Q: What happens if I forget to renew my UAE unemployment insurance?
A: If you miss your premium payments for more than three months, your insurance policy will be cancelled, and you will face a fine of AED 200. You must pay the fine and re-subscribe to be compliant and eligible for future claims.
Q: Is the UAE unemployment insurance mandatory for Free Zone employees?
A: Yes. While there was flexibility during the initial launch, the scheme is now mandatory for employees in the federal government, private sector, and free zones.
Q: Can I claim unemployment insurance if I resign?
A: No. The scheme is strictly for “Involuntary Loss of Employment” (ILOE). Resignations are not covered. You are only eligible if you are terminated for non-disciplinary reasons.
Q: What was the UAE unemployment insurance 2023 deadline?
A: The initial deadline for existing employees to register was October 1, 2023. Employees who missed this deadline were subject to a AED 400 fine. New employees generally have a grace period of 4 months to register.
Q: Can I pay for my unemployment insurance monthly?
A: Yes, monthly payment plans are available. However, many experts recommend paying annually (AED 60 or AED 120) to avoid forgetting a small monthly payment and risking policy cancellation.
