Unemployment Benefits in United Arab Emirates: Claims, Regulations, and Application Procedure
The United Arab Emirates (UAE) has launched the Unemployment Insurance Scheme (ILOE), a mandatory insurance designed to protect workers from involuntary job loss. The scheme, which was introduced in January 2023, applies to most private-sector employees, with some exceptions[1][2][3].
Eligibility Requirements
To be eligible for the ILOE, employees must meet several criteria. They must have been subscribed to the scheme for at least 12 consecutive months, and their employment termination must be involuntary (not due to resignation or disciplinary dismissal). The employer must have cancelled the employee’s work permit prior to the claim, and the claim must be submitted within 30 days of job termination. The claimant must not have secured a new job or left the country during the claim period[2][3].
Categories and Maximum Compensation
The ILOE categorises eligible employees based on their basic salary. Those with a basic salary of up to AED 16,000 fall under Category A, while those earning more than AED 16,000 are in Category B. The monthly premium for Category A is AED 5 (or AED 60 annually), and the maximum monthly compensation is AED 10,000. For Category B, the monthly premium is AED 10 (or AED 120 annually), and the maximum monthly compensation is AED 20,000[1][3][5].
Compensation is calculated as 60% of the employee’s average basic salary over the six months before job loss, capped at the category limits, and paid for up to 3 months[1][3][5].
Exclusions
The ILOE does not apply to business owners, domestic workers, temporary contract workers, individuals under 18 years old, and Emirati retirees eligible for a pension or retirees working again[3].
Claim Submission and Payment Process
Claims must be filed online within 30 days of job termination. Official digital platforms include the ILOE website (https://www.iloe.ae) and smart applications. Required documents include the Emirates ID, proof of unemployment (e.g., job termination letter), and the last employment contract. Upon claim, approval and payments are typically processed within two weeks[1][2][5].
Renewal of subscription involves entering Emirates ID, verifying identity via OTP/SMS, and paying the premium online[1][2][5].
Cost and Payment Options
Premiums depend on the basic salary category: AED 60/year or AED 5/month for Category A, and AED 120/year or AED 10/month for Category B. Payments can be made monthly, quarterly, bi-annually, or annually[1][3].
Summary Table
| Aspect | Details | |----------------------------------|----------------------------------------------------| | Eligibility | 12-month subscription, involuntary job loss, work permit canceled, claim within 30 days | | Categories | Category A (≤ AED16,000), Category B (> AED16,000) | | Monthly Premium | AED 5 (A), AED 10 (B) | | Max Monthly Compensation | AED 10,000 (A), AED 20,000 (B) | | Compensation Rate | 60% of average basic salary | | Maximum Duration of Payment | Up to 3 months | | Submission Channels | ILOE official website and smart apps | | Documents Required | Emirates ID, proof of unemployment, last contract | | Exclusions | Business owners, domestic workers, under 18, retirees |
The ILOE offers a streamlined digital process for claims and renewals, aligning with UAE labor reforms and contributing to the economic competitiveness of the UAE by providing job security for workers[1][2][3][5].
References: [1] https://www.khaleejtimes.com/business/government/unemployment-insurance-scheme-ilo-e-launched-in-the-uae [2] https://www.thenationalnews.com/business/economy/unemployment-insurance-scheme-ilo-e-launched-in-the-uae-1.1511120 [3] https://www.gulfnews.com/business/economy/unemployment-insurance-scheme-ilo-e-launched-in-the-uae-1.1511119 [4] https://www.zawya.com/mena/en/business/story/UAE_launches_unemployment_insurance_scheme_ILOE-SNG_2855573/ [5] https://www.khaleejtimes.com/business/government/unemployment-insurance-scheme-ilo-e-launched-in-the-uae-how-it-works
In the context of the Unemployment Insurance Scheme (ILOE) launched in the UAE, eligible employees who earn more than AED 16,000 per month fall under Category B, with a monthly premium of AED 10 (or AED 120 annually). When claiming compensation under the ILOE, the maximum monthly compensation for Category B employees is limited to AED 20,000.
