UAE's New Unemployment Insurance Law : What You Need to Know -

UAE’s New Unemployment Insurance Law : What You Need to Know

Ever have the fear of being terminated without having a back-up plan? Well, the UAE government has a plan for you.

As per the new scheme introduced by the government by Federal Decree Law Number 13 of 2022, the government will endeavour to support you in case of unemployment so that you can avoid the burden of financial obligations and stay afloat while looking for another employment opportunity.

The Ministry of Human Resources and Emiratisation (MOHRE) will play a central and major role in this major project to protect workers’ rights in the UAE. It is the same ministry that will monitor the work of insurance service providers.

Am I eligible under this scheme?

To be eligible under this scheme you should be subscribed for a minimum period of 12 months, You may be eligible under this scheme, if you satisfy the following conditions, if you are already subscribed to this insurance scheme:

  1.     Your dismissal or termination should not be on the grounds of disciplinary action
  2.     In case of fraud, such compensation shall become redundant
  3.     The compensation shall cease once you have been hired by another employer

If you are from any of the following fields of employment this scheme shall NOT be applicable;

  1.     Temporary employment on a contractual basis
  2.     Minors (Under 18)
  3.     Retirees (persons who receive pension or have joined a new employer)
  4.     Domestic workers

How much will I be entitled to as compensation, under this scheme?

Under this insurance scheme, you will be paying out a premium from your existing basic salary to the service provider. Upon availing the benefit from this scheme, you will be entitled to a monthly compensation that will be 60% of your premium. This premium will be applicable from the date of unemployment for a period of 3 months (the compensation shall go up to a maximum of AED 20,000).

The coverage period shall not exceed a period of 12 months during the insured person’s employment in the market.

How can I subscribe to this scheme?

To apply for the ILOE insurance scheme online, you will need to follow these steps:

Go to the ILOE website at

Locate the “Subscribe Here” button, which is red and located in the center of the screen. Click on this button.

This will take you to the ILOE application portal. Under the “Individual” category, choose whether you are a private sector employee or a federal government employee.

To sign in, you will need to enter either your Emirates ID number or your UID number (Unified Identification Number) along with your mobile number. This is to receive a one-time password (OTP) to complete the registration.

After entering your ID or UID number and mobile number, click the “Request OTP” button.

Enter the OTP you receive to log in to your ILOE dashboard.

The dashboard will show you whether you fall under Category A or Category B of the scheme.

Category A includes employees earning a basic salary of Dh16,000 or less, with an insurance cost of Dh5 per month.

Category B includes employees earning Dh16,000 or above, with an insurance cost of Dh10 per month.

At the top of your dashboard, you will see a summary of your personal details. Review these details and check the box confirming that your information is correct.

You can then choose your ILOE plan for either one year or two years. Once you choose the plan, you will have the option to pay the premium on a monthly, quarterly, semi-annual, or annual basis.

After selecting your plan, you will see the inception date, expiry, insurance cost, and the total premium payable. This will be the amount you need to pay per month, quarterly, or annually.

Review the terms and conditions, then check the box indicating that you have read and agree to them.

Click the “Pay now” button to proceed with the payment.

You will have the option to enter your email address (optional) to receive the insurance certificate via email.

You will then be redirected to the online payment channel to enter your credit card details.

A one-time password will be sent to the phone number associated with your card. Enter the OTP to complete the payment.

Once the payment is confirmed, you will receive an insurance certificate via email or you can download it from your ILOE dashboard.




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