The United Arab Emirates has a program that has become a real financial cushion for millions of working people. This is the compulsory Job Loss Insurance (ILOE), introduced in January 2023, a key element of
insurance in Dubai.
It is aimed at ensuring that everyone who has lost their job through no fault of their own can maintain stability, resident status and confidence in the future. For many expats, this system has become a sign of the maturity of the labor market and an example of how the state supports people in transitional periods of life.
Terms of Participation and Program Structure
To participate in the program, it is enough to have a legal stay in the country and an active employment contract. The employee must be registered in the system for at least 12 months without interruption only then does he receive the right to apply for compensation.
The scheme divides participants into two categories: the first with a base salary of up to 16,000 AED, the second above this amount. The monthly premium is a minimal 5 AED for the first category and 10 AED for the second. However, you can also pay once a quarter, six months or a year. The subscription is simple: through a portal, a mobile application, or even a payment terminal.
This flexibility is convenient for both employed professionals and employees working in free economic zones. The main thing is not to miss payments. After all, a delay of more than three months entails a fine of 200 AED. And for the complete absence of registration in the system, a fine of 400 AED is provided.
Right to compensation and exclusions
The main rule is that payments are intended only for those who have lost their jobs through no fault of their own. If the dismissal is related to disciplinary reasons or voluntary withdrawal, the right to compensation is lost. Also, the system does not cover housekeepers, temporary and part-time employees, minors and investors.
After losing your job, you must submit an application within 30 days. This can be done online from the comfort of your home. The application is reviewed within two weeks after submission, and if everything is confirmed, the money is credited to the account.
The amount of payments is fixed at 60% of the average base salary for the last six months. The maximum payout period is three consecutive months. At the same time, the limit is clearly defined: up to 10,000 AED per month for the first category and up to 20,000 AED for the second.
If the participant gets a job again, the payments are stopped automatically. This logic is simple: the system was created not for long-term maintenance, but for support during the search for a new location.
Real Benefits and Additional Types of Insurance
By mid-2025, more than 5.7 million people had already joined the program. For the UAE, this is not just a number, it is an indicator of trust and effectiveness. The system helps not only to survive difficult periods, but also to maintain the status of a resident, visa conditions and confidence in the future.
For those who want to expand protection, there are additional income insurance policies in case of illness or injury. They provide payments of up to 75% of earnings with the possibility of annual indexation by 2%. Waiting periods are usually 3 or 6 months, and the age of participants is limited to 55-56 years with the possibility of extending coverage to 65 years. Such policies are especially relevant for families where one person provides the main income, because they help to avoid financial stress in case of temporary disability.
Financial Stability as the New Normal
Compulsory unemployment insurance in the UAE has become more than just a law it has become a symbol of a new social responsibility. People are no longer left without support, even if circumstances are stacked against them. A transparent payment system, clear deadlines, and affordable contributions make participation easy and profitable.
Each registered participant feels more confident: knowing that their income is protected, they can focus on finding new opportunities. This program has become an example for the region and proved that social sustainability is possible even in a fast-growing economy. There is nothing superfluous in it, just logic, order and caring for a person.
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