UAE Unveils 3-Step Guide to Renew ILOE Insurance
UAE Unveils 3-Step Guide to Renew ILOE Insurance. The Involuntary Loss of Employment (ILOE) insurance system in the UAE has revolutionized job security for employees across the private and federal sectors. Designed to provide a financial safety net for workers who unexpectedly lose their jobs, this mandatory insurance initiative has become a cornerstone of the UAE’s progressive labor policies.
In 2025, the Ministry of Human Resources and Emiratization (MoHRE) released a simplified 3-step guide to renew ILOE insurance, reinforcing the government’s commitment to promoting a stable, secure, and inclusive workforce. Whether you’re a UAE citizen or an expatriate resident, this system is crucial to your employment journey.
What is ILOE Insurance in the UAE?
ILOE insurance is a government-mandated scheme launched under Federal Decree-Law No. 13 of 2022 to support employees during periods of involuntary unemployment. It offers monthly compensation of up to 60% of the average basic salary of the previous six months for a period of up to three months.
The insurance applies to both Emirati nationals and expatriate workers employed in the federal and private sectors, making it a vital tool for promoting job stability and national economic growth.
3-Step Guide to Renew ILOE Insurance
The renewal process for ILOE insurance has been streamlined for convenience. According to MoHRE, you can renew your policy via the official ILOE website or the ILOE smart application using these three simple steps:
Step 1: Submit Identification Details
- Enter your Emirates ID number
- Provide your mobile number
- Add your date of birth
Step 2: Verify Via SMS
- You will receive a one-time verification code via SMS.
- Enter the code to proceed to the next stage.
Step 3: Review and Pay
- Once your information is verified, your renewal amount will appear on the screen.
- Agree to the terms and conditions
- Proceed with online payment
- After successful payment, download or print your ILOE insurance certificate and receipt
How to Renew via the ILOE Smart App
The ILOE smart app offers the same seamless functionality as the website. Users can:
- Log in with Emirates ID credentials
- Complete verification
- Make payments through integrated portals
For support, you can contact the ILOE call center at 600599555.
ILOE Insurance Categories and Premiums
The ILOE insurance system is divided into two main salary-based categories, ensuring affordability for all employees.
| Category | Monthly Basic Salary | Monthly Premium | Annual Premium | Max Monthly Compensation |
|---|---|---|---|---|
| Category 1 | AED 16,000 or less | AED 5 | AED 60 | AED 10,000 |
| Category 2 | Above AED 16,000 | AED 10 | AED 120 | AED 20,000 |
Note: To be eligible for benefits, you must have maintained at least 12 months of continuous subscription.
ILOE Compensation Rules
- The compensation is 60% of your average basic salary over the past 6 months.
- Disbursement occurs within 14 days of a valid claim.
- Benefits are payable for a maximum of three months per claim.
However, you will not be eligible for compensation if:
- You voluntarily resign.
- You are terminated due to disciplinary reasons.
- You leave the UAE.
- You secure new employment.
Who is Exempt from ILOE Insurance?
Certain individuals and employment types are excluded from the ILOE insurance system:
| Excluded Group | Reason for Exemption |
|---|---|
| Business owners and investors | Not under traditional employment contracts |
| Domestic workers | Not governed by MoHRE |
| Temporary contract workers | Not eligible due to nature of employment |
| Individuals under 18 | Below legal working age |
| Emirati pensioners or re-employed retirees | Already receiving pensions or secondary benefits |
Legal Framework of the ILOE Insurance System
The system operates under Federal Decree-Law No. 13 of 2022, which emphasizes:
- The obligation of employers to ensure employee enrollment
- The rights of employees to receive financial support during job loss
- A mechanism to penalize non-compliance by both employees and employers
Avoid the AED 400 Fine for Late Subscription
If you’re newly employed in the UAE, you must enroll in the ILOE system within 4 months of receiving your work permit. Failing to do so will result in a fine of AED 400.
| Penalty | Amount | Deadline | How to Pay |
|---|---|---|---|
| Late subscription | AED 400 | Within 4 months of work permit | Via MoHRE website or app |
Late Payment of ILOE Contributions: What You Need to Know
The General Pension and Social Security Authority imposes a 2% monthly penalty on delayed insurance payments. The calculation starts from the day after the due date.
Example:
- If an employer delays the payment by 3 months, a 6% penalty applies on the outstanding amount.
This rule ensures strict compliance and timely protection for all insured workers.
ILOE Insurance: A Model for Global Job Security
Unlike many global systems, the UAE’s ILOE framework:
- Places no financial burden on employers
- Is accessible online via website and mobile apps
- Offers a clear claims process with guaranteed compensation timelines
This model is now regarded as a global benchmark in labor rights and social insurance systems.
Benefits of the ILOE Insurance System
The ILOE system is not just about monetary relief. It’s part of a broader vision to:
- Protect workers’ dignity
- Promote career resilience
- Strengthen national productivity
Key Advantages:
- Encourages employee confidence
- Supports national economic growth
- Builds a secure, attractive work environment
- Enhances the UAE’s international competitiveness
Enhancing the UAE’s Global Standing
Thanks to forward-thinking policies like ILOE insurance, the UAE is increasingly viewed as a destination of choice for professionals from around the world. Contributing factors include:
- Robust labor laws
- Access to premium healthcare and education
- World-class infrastructure and security
- Transparent and efficient digital services
ILOE Insurance: Summary at a Glance
| Aspect | Details |
|---|---|
| System Name | Involuntary Loss of Employment (ILOE) |
| Law | Federal Decree-Law No. 13 of 2022 |
| Eligible Sectors | Private & Federal |
| Subscription Method | Website or Smart App |
| Premium | AED 5 or AED 10 monthly |
| Compensation | 60% of average salary (up to 3 months) |
| Claim Conditions | 12-month enrollment, involuntary job loss |
| Exempted Groups | Business owners, domestic workers, etc. |
| Late Subscription Fine | AED 400 |
| Late Payment Penalty | 2% per month |
Important Reminders for Employees and Employers
- New employees: Enroll within 4 months of starting work
- Existing subscribers: Renew your policy before expiry
- Employers: Ensure employees are aware and enrolled
- Individuals: Use only official channels for subscription
FAQs: ILOE Insurance UAE
What happens if I forget to renew my ILOE insurance?
If you fail to renew your ILOE subscription, you may become ineligible for compensation in case of job loss. Additionally, late renewal might incur penalties or require re-enrollment.
Can I claim ILOE benefits if I quit my job?
No, the ILOE scheme only supports involuntary unemployment. Voluntary resignation or termination for disciplinary reasons disqualifies you from receiving compensation.
How long does it take to receive the ILOE compensation after filing a claim?
After submitting a valid claim, the compensation is disbursed within 14 days. Ensure your details are correct and your subscription has been active for at least 12 continuous months.
Conclusion
The UAE’s ILOE insurance system is a pioneering initiative that empowers employees by offering financial stability, even in times of unexpected unemployment. By following the updated 3-step renewal process, and staying informed about eligibility, benefits, and penalties, every worker can take charge of their career resilience.
