Pay & Salary

ILOE Calculator (UAE)

Updated November 2026 · Free · No sign-up

Calculate ILOE — the UAE’s mandatory Involuntary Loss of Employment insurance: premiums of AED 5 or 10/month by salary tier, paying 60% of average basic salary (capped AED 10,000 or 20,000) for up to 3 months per claim.

Quick answer: ILOE tiers: basic salary ≤ AED 16,000 → AED 5/month premium, benefit cap 10,000; above 16,000 → AED 10/month, cap 20,000. Benefit = 60% of the 6-month average basic, max 3 months per claim, after 12 consecutive insured months. Non-subscription fines: AED 400.

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The Scheme

TierPremiumMonthly benefit cap
Basic ≤ AED 16,000AED 5/month (+VAT)AED 10,000
Basic > AED 16,000AED 10/monthAED 20,000

Benefit = 60% of the average basic salary over the 6 months before unemployment, paid up to 3 months per claim (lifetime max 12 benefit months across claims). Conditions: 12+ consecutive subscribed months, involuntary loss (not resignation, not disciplinary dismissal), claim within 30 days, and you’re in the country legally seeking work. Mandatory for most employees (federal + mainland private; free zones included — domestic workers and investors variously exempt).

Worked Example

AED 12,000 basic: premium AED 5/month; job loss → 60% = AED 7,200/month for up to 3 months (21,600 total) — against ~AED 180 of lifetime premiums. The cheapest insurance in the Emirates; the AED 400 fine for not subscribing is the expensive version.

Claim Mechanics

Apply via the ILOE portal/app within 30 days of the last working day; payouts start within ~2 weeks of approval, monthly. The benefit stops on new employment or departure. It stacks ON TOP of gratuity and final settlement money — claim all three streams.

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Fine Print

Resignation disqualifies (involuntary only); absconding cases disqualify; the 12-month clock resets on subscription lapses (auto-renew the policy); and the cap means high earners’ 60% truncates — AED 40,000 basic still pays max 20,000. Verify current premium/cap figures at iloe.ae — the scheme has adjusted since its 2023 launch.

Frequently Asked Questions

What is ILOE?

The UAE’s mandatory unemployment insurance — AED 5-10/month premiums paying 60% of average basic salary (capped 10k/20k) for up to 3 months after involuntary job loss.

Who must subscribe?

Most federal and private-sector employees including free zones — fines of AED 400 for non-subscription; domestic workers and some categories exempt.

Does resignation qualify?

No — involuntary loss only (termination, redundancy, closure); disciplinary dismissals also disqualify.

How long until I can claim?

After 12 consecutive subscribed months — then file within 30 days of the last working day.

Does ILOE affect gratuity?

No — it pays on top of your end-of-service gratuity and final settlement; three separate streams.

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✓ Formula verified  •  Last updated: November 3, 2026