Introduction
Job security has become one of the biggest concerns for employees in 2025. While opportunities in the UAE and beyond are abundant, the reality of unexpected layoffs, business closures, or restructuring cannot be ignored. To address this challenge, the Loss of Employment Insurance scheme was introduced as a financial cushion for employees who lose their jobs involuntarily.
This comprehensive guide will walk you through every aspect of the scheme — from understanding its purpose to knowing how much support you can expect, who qualifies, how to file a claim, and what pitfalls to avoid. By the end, you’ll know exactly how the Loss of Employment Insurance works and how it can help you during uncertain times.
1️⃣ 📌 What is Loss of Employment Insurance (ILOE)?
The Loss of Employment Insurance, often abbreviated as ILOE, is a government-backed insurance system designed to provide financial assistance to employees who are laid off through no fault of their own. It was created to reduce the financial shock of job loss, ensuring that workers can still cover their essential expenses — like rent, bills, food, and transportation — while they search for new employment.
In the UAE, this initiative is part of the government’s broader economic reforms to protect employees and build confidence in the labor market. The ILOE system is mandatory for most employees and managed through an online portal.
🔹 Purpose: To provide temporary income support.
🔹 Coverage: Most UAE-based employees (public and private).
🔹 Duration: Limited (typically up to three months per claim).
By design, the Loss of Employment Insurance acts as a short-term bridge, not a permanent solution. It aims to keep employees financially afloat until they find new opportunities.
2️⃣ 🧾 Who is Eligible for Loss of Employment Insurance?
Eligibility is one of the most common questions about the Loss of Employment Insurance scheme. As of 2025, here are the main requirements:
- ✅ You must be working under a valid employment contract.
- ✅ You must have been registered in the ILOE system for at least 12 months.
- ✅ Your job loss must be involuntary — meaning you were laid off due to restructuring, redundancy, or company closure.
- ✅ You cannot have been dismissed for disciplinary or performance-related reasons.
- ✅ You must be legally residing in the UAE with a valid residency permit.
- ✅ You need to file your claim within 30 days of job termination.
💡 Example: If your company downsizes and eliminates your role, you may qualify for the payout. But if you resign voluntarily or are terminated for misconduct, you won’t be eligible.
This ensures that the system supports genuine cases of involuntary job loss and discourages misuse.
3️⃣ 💵 How Much Will Loss of Employment Insurance Pay?
The payout you receive under the Loss of Employment Insurance depends on your salary bracket and contribution history. As of 2025:
- Employees earning AED 16,000 or less may receive up to AED 10,000 per month for a maximum of 3 months.
- Employees earning above AED 16,000 may receive up to AED 20,000 per month for a maximum of 3 months.
The benefit is calculated as a percentage of your basic salary (commonly 60% of your average basic wage from the last six months).
💡 Scenario Example:
If your basic salary is AED 12,000, your Loss of Employment Insurance benefit may be around AED 7,200 per month, capped at three months, giving you a total of AED 21,600 while you look for another job.
This calculation ensures a reasonable level of support without creating dependency.
4️⃣ 📝 How to Register and Keep Your Loss of Employment Insurance Active
Registration is straightforward and can be completed in multiple ways:
- ILOE Portal: Employees can directly sign up at the official ILOE website.
- Exchange Centers / ATMs / Kiosks: Some licensed outlets offer in-person registration.
- Employer-Supported Registration: Some companies assist employees in registering during onboarding.
👉 Registration requires your Emirates ID, mobile number, and payment of the subscription premium.
Premium Rates in 2025:
- Employees earning AED 16,000 or less: AED 5 per month (AED 60 annually).
- Employees earning above AED 16,000: AED 10 per month (AED 120 annually).
To keep your Loss of Employment Insurance active, ensure that your premiums are paid on time. Non-payment could result in penalties or disqualification from receiving benefits.
5️⃣ 🖥️ How to Claim Your Loss of Employment Insurance (Step-by-Step)
Here’s the step-by-step process for filing a claim in 2025:
- File Quickly: Submit your claim within 30 days of termination.
- Use the Portal: Log in to the ILOE portal or app.
- Upload Documents: Include termination letter, last six months’ payslips, Emirates ID, and bank account details.
- Verification: The insurer reviews and verifies your claim.
- Approval & Payment: Approved claims are usually paid within 2 weeks.
📌 Pro tip: Always double-check that your employer has updated your work status in the Ministry of Human Resources & Emiratisation (MOHRE) system, as mismatches can delay claims.
6️⃣ 🚫 Common Exclusions in Loss of Employment Insurance
While the scheme is broad, some cases are not covered under the Loss of Employment Insurance:
- ❌ Voluntary resignation.
- ❌ Dismissal for disciplinary or legal reasons.
- ❌ Fraudulent claims or falsified documents.
- ❌ Temporary contracts without renewal rights.
- ❌ Late filing of claims (beyond 30 days).
- ❌ Gaps in premium payments.
💡 Example: If you stop paying premiums for 6 months and then lose your job, you won’t be able to claim until your payments are up-to-date.
7️⃣ 🔄 What Happens After You Receive Loss of Employment Insurance?
Receiving Loss of Employment Insurance is not the end of the journey — it’s the beginning of your reemployment phase. Here’s what you should focus on:
- ✅ Job Search: Actively apply for jobs and keep records of your applications.
- ✅ Skill Upgrading: Use this period to learn new skills or certifications.
- ✅ Budget Wisely: Plan your finances carefully since the insurance is time-limited.
- ✅ Stay Compliant: Inform ILOE if you secure a new job before your claim period ends.
The system is built to encourage re-employment while preventing misuse of funds.
8️⃣ ✅ Tips for a Smooth Loss of Employment Insurance Claim
To avoid unnecessary delays or rejections:
- ⏳ File within the allowed 30 days.
- 📂 Keep digital copies of all documents ready.
- ✔️ Ensure premiums are up-to-date.
- 📞 Use official portals or call centers for help.
- 📑 Track your claim status regularly online.
💡 Quick reminder: Always use official sources such as the ILOE Portal to avoid falling victim to scams.
9️⃣ ❓ Frequently Asked Questions (FAQs) about Loss of Employment Insurance
Q1: Is the Loss of Employment Insurance mandatory in the UAE?
Yes, all employees in the public and private sectors (except certain categories like investors, domestic workers, and minors) must subscribe.
Q2: How long can I claim the benefit?
Up to 3 months per claim cycle.
Q3: Can I transfer my ILOE coverage if I switch jobs?
Yes, your insurance follows you as long as you remain legally employed and continue paying premiums.
Q4: What happens if I miss a premium payment?
You may face penalties, and your eligibility for future claims could be affected.
Q5: Can expatriates also claim?
Yes, expatriates are fully covered as long as they meet eligibility conditions.
Conclusion
The Loss of Employment Insurance is a powerful safety net for workers in 2025. It doesn’t replace your salary completely, but it gives you breathing space while you plan your next career step. By registering on time, keeping your premiums updated, and knowing the claim process, you can ensure you’re financially supported in case of job loss.
Think of the Loss of Employment Insurance as a backup plan — not a crutch. Use it wisely to protect your financial stability and keep moving forward confidently in your career.
External Links & References
- Official ILOE Portal UAE
- UAE Government: Job Loss Insurance
- Gulf News: ILOE Explained
- Khaleej Times: ILOE Updates 2025
- EY Middle East Insights on ILOE
Also Read: Business Golden Visa in the UAE — The Complete 2025 Guide