UAE ILOE Insurance Scheme: Compensation for Job Loss

The UAE's Involuntary Loss of Employment (ILOE) insurance scheme offers short-term income support to private sector workers who are terminated from their jobs, excluding those who leave voluntarily. To qualify, workers must have been subscribed to the scheme for at least 12 months, paid all premiums on time, and been terminated rather than resigned.

Compensation is set at 60% of the average basic monthly salary earned during the 12 months prior to job loss, with a cap based on salary bands. Workers earning a basic salary of Dh16,000 or less fall under Category A, receiving a maximum of Dh10,000 monthly, while those earning above Dh16,000 fall under Category B, receiving up to Dh20,000 monthly.

Payments are available for a maximum of three months but cease immediately if the worker finds new employment or leaves the UAE. Claims must be submitted within 30 days of the employment contract ending, and the lifetime maximum compensation across all insurance certificates is capped at 12 months.