UAE Mandates Dh5-a-Month Job Loss Insurance, Offering Up to 60% Salary for 3 Months
Updated
Updated · Emirates 24|7 · May 18
UAE Mandates Dh5-a-Month Job Loss Insurance, Offering Up to 60% Salary for 3 Months
3 articles · Updated · Emirates 24|7 · May 18
UAE workers in the private sector and federal government must enroll in the ILOE unemployment insurance scheme, which pays temporary compensation after involuntary job loss.
Dh5 monthly premiums apply to employees earning under Dh16,000, while those above that threshold pay Dh10; compensation covers 60% of basic salary for up to three months, capped at Dh10,000 or Dh20,000.
12 consecutive months of contributions are required before a claim, and payouts are barred for resignations, disciplinary dismissals, absconding reports or late filings beyond 30 days after termination.
AED400 fines apply for failing to subscribe and AED200 for missed payments; policies cancelled after three months of non-renewal can also void eligibility.
Launched in January 2023 under Federal Decree-Law No. 13 of 2022, the scheme is administered through the ILOE Insurance Pool and can be accessed via the ILOE website, app, banks, exchanges and kiosks.
With millions already paid out, are the low premiums for UAE's job insurance sustainable through a major economic downturn?
By offering a safety net, is the UAE's job insurance accidentally encouraging longer unemployment spells instead of rapid re-employment?
As AI threatens professions, is the UAE's 3-month unemployment benefit enough for workers forced into lengthy reskilling?