ILOE Insurance UAE 2025: Guide to Eligibility, Benefits, Plans, and Claims

Namaste dosto! If you’re working in the UAE, the Involuntary Loss of Employment (ILOE) Insurance Scheme is a must-know safety net. Introduced under Federal Decree-Law No. 13 of 2022, this mandatory program protects you financially if you lose your job due to reasons beyond your control, like layoffs or company downsizing. In 2025, ILOE remains a key part of UAE’s labor welfare system, offering cash benefits to help you stay afloat while job hunting. In this guide, I’ll break down the eligibility, benefits, plans, and how to claim ILOE insurance in simple steps. Let’s dive in!

What is ILOE Insurance?

The ILOE Insurance Scheme is a government-backed program designed to support UAE employees in the private and federal sectors who face unexpected job loss. It’s not for resignations or disciplinary dismissals but for situations like redundancy or economic layoffs. By paying a small monthly premium, you’re covered for up to three months of cash benefits, giving you financial stability during tough times. This scheme boosts workforce confidence and aligns with UAE’s vision for a secure labor market.

Why ILOE Insurance Matters

Before we get to the details, let’s see why ILOE is a big deal:

• Financial Safety Net: Get up to 60% of your basic salary to cover expenses while jobless.

• Mandatory Compliance: All eligible employees must enroll to avoid fines (AED 400 for non-registration).

• Wide Coverage: Applies to UAE nationals and expats in public and private sectors.

• Peace of Mind: Focus on finding a new job without immediate financial stress.

Now, let’s explore the eligibility, benefits, plans, and claims process for 2025.

Eligibility for ILOE Insurance

Not everyone qualifies for ILOE. Here’s who can enroll and who’s exempt:

Eligibility Criteria	Details
Eligible Employees	UAE nationals and expats in private or federal sectors with a valid work permit from MoHRE.
Minimum Subscription	Must pay premiums for 12 consecutive months without a gap longer than 3 months.
Exclusions	Business owners, domestic workers, temporary contract workers, juveniles under 18, retirees with pensions who joined new jobs.

Note: Golden Visa holders need a Labour Card from their employer to qualify. If your details aren’t found, contact MoHRE or your HR department.

ILOE Insurance Benefits

ILOE offers cash benefits to help you manage expenses during unemployment. Here’s what you get:

Benefit	Details
Monthly Compensation	Up to 60% of your average basic salary (based on the last 6 months before job loss).
Duration	Paid for up to 3 consecutive months per claim.
Lifetime Cap	Maximum of 12 monthly benefits over your entire UAE work life, regardless of claims.
Category A	For salaries up to AED 16,000: Up to AED 10,000/month.
Category B	For salaries above AED 16,000: Up to AED 20,000/month.

Example: If your basic salary is AED 10,000, you could receive AED 6,000/month for 3 months (AED 18,000 total per claim). Payments stop if you find a new job.

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ILOE Insurance Plans and Costs

ILOE premiums are affordable and based on your salary. You can choose a payment plan that suits you, but as of July 2025, quarterly and monthly options are discontinued for new registrations.

Plan	Salary Range	Premium Cost	Payment Options
Category A	Up to AED 16,000	AED 5/month	Annual or biennial (1 or 2 years)
Category B	Above AED 16,000	AED 10/month	Annual or biennial (1 or 2 years)

Payment Channels: Pay via the ILOE portal (www.iloe.ae), MoHRE app, bank ATMs, Al Ansari Exchange, or authorized service centers. A 5% VAT applies to premiums. Non-payment for over 3 months cancels your policy, with a AED 200 fine.

How to Claim ILOE Insurance in 2025

Filing a claim is straightforward if you meet the eligibility criteria. You must act within 30 days of job loss. Here’s how:

Steps to Claim ILOE Insurance

Step	Description
1	Ensure your ILOE policy is active and premiums are paid for 12 consecutive months.
2	Confirm your job loss was involuntary (e.g., layoff, not resignation or misconduct).
3	Gather documents: Emirates ID, termination letter, recent salary slips, and travel report (from GDRFA or Dubai NOW app).
4	Visit www.iloe.ae, the ILOE app, or call 600 599 555 to submit your claim.
5	Upload documents in PDF format and submit within 30 days of termination or labor dispute resolution.

Processing Time: Claims are reviewed within 14–30 days, and approved funds are transferred within 2 weeks to your bank account. If denied, contact claims@iloe.ae or MoHRE for clarification.

Tips to Avoid Claim Rejections

• Submit on Time: File within 30 days of job loss to avoid automatic rejection.

• Provide Complete Documents: Missing files like your termination letter or Emirates ID can delay or cancel your claim.

• Stay in UAE: You must be legally present in the UAE when filing.

• Avoid Fraud: Claims involving deceit or fictitious employers are rejected.

• Check Policy Status: Ensure premiums are up-to-date to keep your policy active.

Frequently Asked Questions (FAQs)

1. Is ILOE insurance mandatory?
Yes, it’s mandatory for private and federal sector employees. Non-compliance incurs a AED 400 fine.

2. Can I claim if I resign?
No, ILOE covers only involuntary job loss, like layoffs, not resignations or disciplinary dismissals.

3. How do I pay ILOE premiums?
Use the ILOE portal, MoHRE app, bank ATMs, or Al Ansari Exchange. New policies in 2025 require annual or biennial payments.

4. What if my claim is denied?
Contact ILOE at claims@iloe.ae or MoHRE at 600 590 000. You can appeal or escalate to regulatory authorities.

5. Can I re-subscribe if my policy is canceled?
Yes, you can re-subscribe with a new policy, but you’ll need to pay any pending fines.

Final Thoughts

Namaste dosto! The ILOE Insurance Scheme in UAE for 2025 is a vital lifeline for employees facing unexpected job loss. With affordable premiums starting at AED 5/month and benefits up to AED 20,000/month, it’s a smart way to stay financially secure. Enroll via www.iloe.ae or the MoHRE app, keep your premiums paid, and know the claim process to avoid hiccups. For more details, contact MoHRE at 600 590 000 or visit their website. Stay protected and focus on your career with confidence!

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