Insurance against job loss

The Unemployment Insurance scheme is a form of insurance/social security that provides Emiratis and residents working in the federal and private sectors, financial support if they lose their jobs, as a result of termination by their employers. It aims to ensure continued decent living for the unemployed, and achieve a competitive knowledge economy by attracting and retaining best international talent.

U.Ask

Insurance against job loss

What is the Unemployment Insurance scheme?

It is a scheme aimed at compensating the insured person with a cash amount for a limited period in case of unemployment.

  

Scope of application of the scheme

All employees in the federal government sector and the private sector are required to participate in the scheme by purchasing an insurance policy that covers them in case their service ends according to the established eligibility criteria. The following categories of workers are excluded from the scheme: 
a. investors (the owner of the establishment where they work)
b. domestic workers
c. employees with temporary contracts
d. juveniles (those under the age of 18)
e. Emirati citizens who have met the conditions for retirement or retirees who receive a pension and have joined a new job.

 

Objectives of the scheme

The objectives of the Unemployment Insurance scheme are to:

  1. provide a social protection umbrella for workers, ensuring a decent life for them and their families until an alternative job opportunity is found.
  2. ensure the availability of income for the insured person for a limited period of up to 3 months during unemployment.
  3. encourage Emirati citizens to enter the private sector and benefit from government support and empowerment.
  4. enhance the competitiveness of Emirati talent in the labour market and make the labour market in the country more attractive.
  5. attract the best global talents and skilled workers and retain them in the labour market in the country.

 

Subscription value

The worker is required to pay the insurance premium for a basic insurance package as per the categories mentioned below.

  • First category - If the worker’s basic salary is less than 16,000 AED, then the premium is no more than 5 AED per month.
  • Second category - If the worker’s basic salary is more than 16,000 AED, then the premium is no more than 10 AED per month.

 

Workers on commission-based pay (a percentage of sales or profits) may choose either subscription category, if their basic salary is not defined in the employment contract.

Compensation
The insured worker is eligible for 60 per cent of the subscription salary for a period of 3 months, with a maximum of:

  • 10,000 AED per month for the first category and
  • 20,000 AED per month for the second category.

 

Channels for subscribing and paying premiums

There are nine channels for subscribing to and paying the premiums for the Unemployment Insurance scheme. They are:

  1. the official website of the Involuntary Loss of Employment Scheme
  2. the ILOE app available on Google Play and App Store
  3. contact centre of ILOE
  4. business service centres (Tasheel and Tawjeeh)
  5. ATMs and kiosks (MBME PAY, C3PAY5, UPAY)
  6. exchange companies (Al Ansari Exchange centres or app)
  7. mobile applications of some banks
  8. SMS to du and Etisalat
  9. the BOTIM app available on Google Play and App Store.

 

These channels are in joint co-operation with Ministry of Human Resources and Emiratisation and ILOE.

 

How to claim compensation?

In order to claim compensation, 

  1. the worker (insured person) must submit a claim to the insurance service provider within 30 days from the date of the end of the employment relationship after which,
  2. the service provider will review the claim and respond; ensuring compensation is paid within two weeks of the submission date.

 

Conditions for claiming compensation

To ensure that the insured person receives the insurance coverage, the following conditions must be met:

  1. The insured person must have been subscribed to the scheme for at least 12 continuous months.
  2. The insured person must have paid all insurance premiums according to the schedule chosen.
  3. The insured person must prove that he/she is unemployed for reasons other than resignation.
  4. The insured person must not have been dismissed from his/her job for disciplinary reasons according to the labour law and human resources law in the federal government, or other relevant legislation.
  5. The claim must be submitted within 30 days from the end of the employment relationship or the resolution of the labour dispute.
  6. The insured person must not have an ongoing work absence complaint.
  7. The claim should not be based on fraud or deceit, or if it is proven that the employer is fictitious.
  8. The job loss must not result from strikes or non-peaceful protests, regardless of whether he/she caused damage.
  9. The insured person must be present in the country.

 

Compensation will be suspended if the worker/employee finds a new job during the period of eligibility for compensation.

 

Fines for not subscribing to the unemployment insurance scheme 

A worker who does not subscribe to the Unemployment Insurance Scheme will be fined 400 AED.

A worker who does not pay the premiums will be fined 400 AED.

 

Related links:

 

References

For more information on the regulations and provisions governing the scheme, read:

  1. Federal Law Decree No. 13 of 2022 Regarding Unemployment Insurance scheme (PDF, 1 MB) 
  2. Cabinet Resolution No. 97 of 2022 Concerning the Procedures and Controls for Implementing Unemployment Insurance Scheme (PDF, 779 KB)
  3. Ministerial Decision No. 604 of 2022 Regarding the Unemployment Insurance scheme (PDF, 500 KB)
  1. Ministerial Decision No. 340 of 2023 Regarding Amendments to the Penalties Associated with the Unemployment Insurance scheme (PDF, 1 MB).

 

Watch this video explaining the Unemployment Insurance Scheme.

 

 

Source: MoHRE

Updated On :

13 Aug 2025

Prev topic

Insurance against defaulting/non-compliant employers

View all Services

Next topic

Health insurance for private sector employees and domestic workers