When Involuntary Loss of Employment Compensation Stops In The UAE And What Affects Your Eligibility

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 rather than resignation. The scheme is designed to provide short-term income protection while individuals look for new employment.

 

Here is how the system works, when payouts stop and what can affect eligibility.

 

When You Can Start Claiming ILOE Compensation

 

You can claim unemployment insurance only after completing at least 12 consecutive months of subscription to the scheme. This means you must remain enrolled and comply with the applicable premium payment requirements before becoming eligible for compensation.

 

When Unemployment Insurance Payouts Stop

 

The insurer’s obligation to provide compensation ends in specific circumstances. These include reaching the maximum compensation limit applicable during the insurance period and reaching the overall maximum of 12 months of compensation across all claims during the insured person’s employment in the UAE. Coverage also ends upon the death of the insured person, from the date of death.

 

Compensation also stops if the insured person secures a new job or leaves the UAE, even if the three-month compensation period has not been completed.

 

How Much Compensation You Can Receive

 

Compensation is calculated at 60 per cent of the insured person’s average basic salary during the six months preceding the loss of employment. The amount is subject to the applicable category and monthly limits.

 

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 available for up to three months for each claim, or until you secure new employment or leave the UAE, whichever occurs first. The aggregate compensation cannot exceed 12 months over the insured person’s entire employment in the UAE.

 

Eligibility Requirements For ILOE

 

To qualify for compensation under the scheme, you must have been subscribed to the unemployment insurance scheme for at least 12 consecutive months before losing your job and must have paid the required insurance premiums according to the agreed payment schedule.

 

You must also demonstrate that you lost your job for a reason other than resignation and must not have been dismissed for disciplinary reasons. An existing absconding complaint, a fraudulent claim, employment with a fictitious establishment, or loss of employment resulting from non-peaceful labour strikes or stoppages can also affect eligibility. The insured person must have legal residence in the UAE.

 

When And How To File A Claim

 

You must submit your claim within 30 days of the termination of the employment relationship or, where applicable, within 30 days of the resolution of a labour complaint referred to the courts. Claims can be submitted through the official ILOE website, mobile application, call centre or other channels approved by the Ministry of Human Resources and Emiratisation.