Your Complete Guide to ILOE (Involuntary Loss of Employment)

Dubai’s job market can be unpredictable, and unforeseen circumstances may sometimes lead to job loss beyond your control. It can be a great setback for the UAE nationals and expats who do not have a financial backup. However, the UAE government has introduced the Involuntary Loss of Employment (ILOE) Scheme to help you during times of uncertainty. This scheme aims to provide financial stability to residents who suddenly lose their jobs during a transitional period. So, what exactly is ILOE, what are its benefits, and how can you apply for it? In this blog, we will provide you with all the necessary information regarding ILOE (Involuntary Loss of Employment).

What is Involuntary Loss of Employment Insurance (ILOE)?

Involuntary Loss of Employment Insurance (ILOE) is a government insurance scheme to support employees who lose their jobs due to uncontrollable circumstances. The scheme was introduced in 2023 and provides financial assistance to residents searching for new jobs. Government and private sector employees can benefit from this scheme.

Involuntary Loss of Employment Insurance (ILOE) Programme Categories

The ILOE programme has two categories:

Category A

Monthly charges: AED 5 + VAT

Total: AED 60 + VAT per year

Employees with a basic salary of AED 16,000 or less can claim 60% (maximum AED 10,000) for three consecutive months after losing their job. They must have subscribed to this plan for the last 12 months to be eligible for the claim.

Category B

Monthly charges: AED 10 + VAT

Total: AED 120 + VAT per year

Employees with a basic salary of more than AED 16,000 can claim 60% (up to a maximum of AED 20,000) for three consecutive months after losing their job. Just like category A, an employee must have enrolled on this plan for the last 12 months before job loss.

Payment Plans

ILOE offers different payment plans mentioned below:

Monthly: pay every month   

Quarterly: pay in four parts per year  

Semi-annual: pay twice per year  

Annual: pay in full at once

Download the ILOE mobile app or visit the online portal to subscribe to the insurance plan.

How to Pay for ILOE Insurance?

Follow these simple steps to pay ILOE insurance online.

Step 1: Visit the ILOE official website

Step 2: Select 'Subscribe/Renew Here'

Step 3: A new tab will open. Select the 'Individual' tab with your 'Sector', i.e. private or public.

Step 4: You will be directed to the ILOE portal. Enter your Emirates ID number, UAE mobile phone number, and date of birth.

Step 5: You will receive an OTP. Enter the OTP to sign in.

Step 6: Select your insurance amount and payment plan. You can pay with debit or credit cards or other methods.

Step 7: Your subscription will get activated.

Eligibility Criteria to Claim Compensation

To claim compensation, you must have made monthly payments for at least twelve months, depending on your salary. Other important eligibility considerations are:

• Apply for the claim within the first 30 days of termination
• Pay all the insurance premiums on time. Late payments may make you ineligible for the claim.
• Individuals terminated due to disciplinary action or resignation are not entitled to a compensation claim.
• The claim must be legitimate and not fraudulent.
• The applicant must be in the UAE to file a claim.

Once you meet all the requirements, you will receive 60% of your basic salary for the next three months.

Documents Required

You will need to provide the following documents to claim ILOE compensation:

• Termination letter indicating the reason for unemployment
• Employer undertaking 
• Copy of Emirates ID
• Copy of Insurance certificate
• Work permit cancellation document
• Copy of employment letter
• Valid UAE mobile number
• Other supporting documents, if requested by the Ministry of Human Resources and Emiratisation (MOHRE).

Professions Exempt from the Scheme

All Emiratis and residents of the UAE serving in the federal government and private sectors can be a part of the scheme. However, there are some professions which are exempted, such as:

• Individuals holding investment positions
• Domestic helpers like maids and housekeepers
• Individuals working on a temporary basis
• Workers below the age of 18
• Retired employees who receive a pension

Benefits of the Involuntary Loss of Employment Insurance (ILOE) Scheme

Here are the benefits of the Involuntary Loss of Employment Insurance (ILOE) scheme for employees who lose their jobs:

• Individuals can still support their families while looking for a new job.
• Three months is a sufficient time to look for and get hired for a new job.
• It reduces the stress and anxiety of being unemployed.
• Individuals can find the most suitable jobs rather than rushing into any open position that could ruin their careers.
• Employees feel confident that they have support in case of unexpected job disruptions.

Fines Related to ILOE Insurance

Different fines related to ILOE insurance are:

Fine for overdue payments: AED 100 (payable within 30 days

Fine for breaching terms and conditions: AED 500 ( to be paid immediately)

Fine for false claim: AED 1,000 ( to be paid immediately)

Fine for submitting late documents: AED 200 (payable within 15 days)

You can check for fines by using the MOHRE app, which is available on Android and IOS. Fines can be paid with a debit or credit card. 

Conclusion

ILOE (Involuntary Loss of Employment) insurance provides a financial cushion for UAE nationals and residents. It's a lifesaver scheme that helps maintain financial stability during uncertain times. ILOE is a small investment with big benefits, so keep yourself updated on its terms and policies to handle tough times with peace of mind.

At Betterhomes, we know that an unexpected job loss can bring a lot of uncertainty, especially when it comes to your home. Our expert team is here to help you with flexible real estate solutions tailored to your situation. Contact us today for a free, confidential consultation.