The UAE Mandatory Unemployment Insurance Scheme


Employees must register by June 30th this year or face being fined. 

Employees based in the UAE, including expatriate staff, must subscribe to the country’s mandatory Unemployment Insurance Scheme by June 30th. The Ministry of Human Resources and Emiratisation (MoHRE) has called on all eligible employees to register for the scheme to their staff – it provides a low-cost job security net for employees should they lose their jobs.

The insurance scheme is also known as the “Involuntary Loss of Employment (ILOE)” scheme and actually came into force from January 1, 2023. All employees must sign up to it by June 30th this year.

Benefits & Penalties

Eligible categories of employees need to pay up to only Dh120 (@US$32) to receive up to Dh20,000 (@US$5,400) monthly financial compensations for up to three months until they find a new job, if they lose their job due to reasons other than disciplinary action or resignation. Eligible employees must sign up for the scheme by June 30, failing which they will be fined Dh400.

Who Is Covered?

While the scheme was earlier available to expatriates and Emiratis working full-time in the UAE’s federal and private sectors, on May 3, Dubai Insurance, the company that manages the ILOE Insurance Pool, posted on its official social media accounts that Freezone employees and semi-government entities can now participate in the scheme.

Who Is Exempt?

Exemptions include investors — the owner of the facility in which he or she works, domestic helpers, employees with a temporary employment contract, juveniles under 18 years of age, and a retiree who receives a retirement pension and has joined a new job.

Premium and Compensation

Eligible employees have been divided into two categories — the first covering those with a basic salary of Dh16,000 or less.

The insurance premium for the insured employee in this category is set at Dh5 per month (Dh60 annually), and monthly compensation is capped at Dh10,000 per month. The second category includes those with a basic salary exceeding Dh16,000, and the insurance premium is Dh10 per month (Dh120 annually) with a monthly compensation of up to Dh20,000.

How to Subscribe?

MoHRE has highlighted “quick and easy steps” to subscribe to the Scheme, which aims to provide a low-cost job security net that supports the career path and living stability of employees in the UAE at no additional cost to employers.

The ILOE Insurance Pool’s website is the preferred channel for the majority of subscribers to date. Other channels available for subscription include the Insurance Pool’s app (ILOE), kiosks, business service centres, money exchange centres such as Al Ansari, and bank smart apps, as well as SMS and telecom bills.

How to Subscribe for Free?

Subscribing to the scheme online can be done in four steps — visit the ILOE website, click on “subscribe here” to access the registration page, select the relevant sector you are employed in; enter your personal identification data, phone number and verification code sent via SMS; choose your preferred payment interval (monthly, quarterly, semi-annual or annual); enter your email address, and move onto the payment gateway to complete registration successfully.

Similar procedures can be used on the ILOE mobile application which is available for both Apple and Android devices.

Signing up for the unemployment insurance plan is free of charge through the ILOE website and app. Both of these platforms are operated by Dubai Insurance.

Other Insurance Subscription Options

Subscribing to the scheme through other channels provided by private entities that have partnered with Dubai Insurance is subject to additional service charges upon subscription, according to the ILOE website.

At Al Ansari Exchange, employees must present their Emirates ID and mobile number and fill up the ILOE insurance form by selecting the policy period (one or two years) and choosing the payment option — monthly, quarterly, semi-annual or annual.

Once the payment is made, the applicant will officially be enrolled in the scheme and receive a receipt confirming the payment.

Registering at Kiosks & Centres

You can also choose to enroll in the ILOE scheme using self-service kiosk machines. Currently, the official subscription channels in the UAE are MBME Pay and UPay. These kiosks are widely available across the country, and you can locate the nearest one by searching for ‘MBME Pay’ and ‘UPay’ kiosks using an online map application.

Enrollment for the ILOE scheme is also possible at Tawjeeh or Tasheel service centres, which are managed by MOHRE. During your visit to a centre, you will be required to provide your Emirates ID and mobile number to complete the subscription process for the scheme. MOHRE website has a list of locations of these centres.

Other Apps

Employees also have the option to enroll in the Unemployment Insurance Scheme using the C3Pay mobile app and card. C3Pay is a product provided by Edenred, an authorised Wage Protection System (WPS) agent regulated by the Central Bank of the UAE.

If you possess a C3Pay card or account, you can subscribe to the ILOE insurance plan directly through the mobile application called ‘C3Pay,’ accessible for both Apple and Android devices.

Compensation Calculation

The compensation is calculated at the rate of 60% of the average basic salary for the last six months before unemployment and paid for a maximum of three months for each claim from the date of unemployment.

Claiming Compensation

The insurance compensation can be claimed as long as the insurer (employee) has subscribed to the Unemployment Insurance Scheme for at least 12 consecutive months. The claim can be submitted within 30 days of job loss and will be processed within two weeks of submission.

The insured’s right to compensation is forfeited if he/she cancels their residency and leaves the country, or joins a new job, within the processing period.

Dezan Shira & Associates has an office in Dubai and assists foreign investors in the UAE market. For assistance in establishing a business in Dubai, and help with HR, Payroll and related HR and tax functions, please contact us at

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