Everything You Need to Know About the UAE's ILOE Insurance Scheme
Everything You Need to Know About the UAE's ILOE Insurance Scheme
Learn how to manage ILOE Insurance in the UAE: online payments, annual renewal, and mandatory compliance.
ILOE Insurance is a mandatory UAE scheme offering unemployment compensation to eligible employees through a low-cost monthly premium. Learn how to enrol, renew, and remain compliant to avoid fines and protect your income.
If you're an SME leader or HR manager in the UAE, understanding the Involuntary Loss of Employment (ILOE) scheme isn't optional, it's a legal and strategic necessity. With enrollment deadlines passed and renewal cycles underway, falling behind could mean fines or lost coverage.
In January 2025 MOHRE confirmed that the scheme already protects about 9 million subscribers, reflecting its critical role in the UAE labour market. Here’s how to stay on the right side of the law, and turn compliance into a retention win.
What Is ILOE Insurance?
The ILOE (Involuntary Loss of Employment) insurance is a government-mandated safety net designed to provide financial support to workers who lose their jobs involuntarily.
Introduced under Federal Decree Law No. 13 of 2022, the ILOE initiative came into effect on 1 January 2023, giving employees until 1 October 2023 to enrol. The goal? To offer peace of mind through a compensation system that delivers 60% of an employee’s basic salary for up to three months after involuntary termination.
- Categories & costs:
- Category A (basic ≤ AED 16,000): AED 5 + VAT per month
- Category B (basic > AED 16,000): AED 10 + VAT per month
How to Pay ILOE Insurance Online
Paying your ILOE subscription is simple, here’s a step-by-step guide to stay compliant. The fastest way to pay or catch up on premiums is MOHRE’s ILOE Quick Pay portal.
- Visit ILOE Quick Pay on the MOHRE e-services site.
- Enter Emirates ID or UID and verify with the OTP sent to your phone.
- Select “Pay Premium” or “Pay Fine” as applicable.
- Choose frequency (monthly, quarterly, semi-annual or annual).
- Confirm payment: a receipt and updated certificate arrive instantly by SMS/email.
How to Renew ILOE Insurance
Every policy runs for one or two years. Renew before expiry or within the three-month grace period to avoid automatic fines and coverage lapses.
When to Renew:
- Renewal is due 12 months from your initial subscription date
- Reminders are not always automated, track your timeline manually
Renewal Options:
- ILOE.ae Portal: Log in and click 'Renew'
- MOHRE App: Navigate to Insurance tab → Renewal
- Service Centres: Provide Emirates ID + mobile verification
Quick renewal steps
- Log in at ILOE.ae and click “Subscribe/Renew”.
- Confirm employment sector, Emirates ID and mobile OTP.
- Select one-time two-year renewal (recommended).
- Pay via card, Apple Pay or local bank transfer.
- Download the new certificate; calendar the next due date.
Use a company-wide tracker for HR to manage staff renewals efficiently.
Is ILOE Dubai Insurance Mandatory?
Yes, ILOE insurance is mandatory for all eligible employees across Dubai and the UAE. All Emirati and expatriate workers must subscribe within four months of their start date
Failure to enrol or renew is considered non-compliance under federal law. However, there are a few exemptions:
Exempted Categories:
- Domestic workers
- Temporary contract workers
- Investors/business owners
- Juveniles under 18
- Retirees with pensions re-entering workforce
The scheme applies regardless of visa type, free zone employees must also comply.
Non-compliance can lead to:
- AED 400 fine for non-enrolment.
- AED 200–500 additional fine when premiums lapse > 90 days.
- MOHRE blocks visa or labour-card services until fines are cleared.
HR managers should regularly audit employee statuses to ensure mandatory enrolments are complete.
Benefits of ILOE for SMEs and Employees
For employees, it’s financial safety; for businesses, it’s legal compliance and talent confidence.
Employer Advantages:
- Avoid regulatory penalties
- Enhance your EVP (Employee Value Proposition)
- Promote financial security and trust
Employee Protection:
- Smooth transition between jobs
- Emergency income stream
- Psychological security in uncertain times
The ILOE scheme is a cornerstone of the UAE's evolving labour framework. For SME owners and HR leaders, the key is proactive compliance, don’t wait for reminders. Use this guide to:
- Review enrolment status
- Set up auto-renewals
- Educate your team
- Avoid fines and delays
Need help auditing or managing ILOE compliance across your team? People Partners offers tailored HR support to ensure you're covered.
ILOE Insurance is a mandatory UAE scheme offering unemployment compensation to eligible employees through a low-cost monthly premium. Learn how to enrol, renew, and remain compliant to avoid fines and protect your income.
If you're an SME leader or HR manager in the UAE, understanding the Involuntary Loss of Employment (ILOE) scheme isn't optional, it's a legal and strategic necessity. With enrollment deadlines passed and renewal cycles underway, falling behind could mean fines or lost coverage.
In January 2025 MOHRE confirmed that the scheme already protects about 9 million subscribers, reflecting its critical role in the UAE labour market. Here’s how to stay on the right side of the law, and turn compliance into a retention win.
What Is ILOE Insurance?
The ILOE (Involuntary Loss of Employment) insurance is a government-mandated safety net designed to provide financial support to workers who lose their jobs involuntarily.
Introduced under Federal Decree Law No. 13 of 2022, the ILOE initiative came into effect on 1 January 2023, giving employees until 1 October 2023 to enrol. The goal? To offer peace of mind through a compensation system that delivers 60% of an employee’s basic salary for up to three months after involuntary termination.
- Categories & costs:
- Category A (basic ≤ AED 16,000): AED 5 + VAT per month
- Category B (basic > AED 16,000): AED 10 + VAT per month
How to Pay ILOE Insurance Online
Paying your ILOE subscription is simple, here’s a step-by-step guide to stay compliant. The fastest way to pay or catch up on premiums is MOHRE’s ILOE Quick Pay portal.
- Visit ILOE Quick Pay on the MOHRE e-services site.
- Enter Emirates ID or UID and verify with the OTP sent to your phone.
- Select “Pay Premium” or “Pay Fine” as applicable.
- Choose frequency (monthly, quarterly, semi-annual or annual).
- Confirm payment: a receipt and updated certificate arrive instantly by SMS/email.
How to Renew ILOE Insurance
Every policy runs for one or two years. Renew before expiry or within the three-month grace period to avoid automatic fines and coverage lapses.
When to Renew:
- Renewal is due 12 months from your initial subscription date
- Reminders are not always automated, track your timeline manually
Renewal Options:
- ILOE.ae Portal: Log in and click 'Renew'
- MOHRE App: Navigate to Insurance tab → Renewal
- Service Centres: Provide Emirates ID + mobile verification
Quick renewal steps
- Log in at ILOE.ae and click “Subscribe/Renew”.
- Confirm employment sector, Emirates ID and mobile OTP.
- Select one-time two-year renewal (recommended).
- Pay via card, Apple Pay or local bank transfer.
- Download the new certificate; calendar the next due date.
Use a company-wide tracker for HR to manage staff renewals efficiently.
Is ILOE Dubai Insurance Mandatory?
Yes, ILOE insurance is mandatory for all eligible employees across Dubai and the UAE. All Emirati and expatriate workers must subscribe within four months of their start date
Failure to enrol or renew is considered non-compliance under federal law. However, there are a few exemptions:
Exempted Categories:
- Domestic workers
- Temporary contract workers
- Investors/business owners
- Juveniles under 18
- Retirees with pensions re-entering workforce
The scheme applies regardless of visa type, free zone employees must also comply.
Non-compliance can lead to:
- AED 400 fine for non-enrolment.
- AED 200–500 additional fine when premiums lapse > 90 days.
- MOHRE blocks visa or labour-card services until fines are cleared.
HR managers should regularly audit employee statuses to ensure mandatory enrolments are complete.
Benefits of ILOE for SMEs and Employees
For employees, it’s financial safety; for businesses, it’s legal compliance and talent confidence.
Employer Advantages:
- Avoid regulatory penalties
- Enhance your EVP (Employee Value Proposition)
- Promote financial security and trust
Employee Protection:
- Smooth transition between jobs
- Emergency income stream
- Psychological security in uncertain times
The ILOE scheme is a cornerstone of the UAE's evolving labour framework. For SME owners and HR leaders, the key is proactive compliance, don’t wait for reminders. Use this guide to:
- Review enrolment status
- Set up auto-renewals
- Educate your team
- Avoid fines and delays
Need help auditing or managing ILOE compliance across your team? People Partners offers tailored HR support to ensure you're covered.
FAQs
How to pay ILOE insurance online?
To pay ILOE insurance online, visit the official iloe.ae website or use the ILOE or MOHRE app. Log in with your Emirates ID and one-time password. Select the subscribe or quick pay option, choose your plan and payment frequency, then enter your card details to complete the payment. Once paid, your insurance certificate is issued instantly.
How to renew ILOE insurance?
To renew ILOE insurance, go to iloe.ae or the ILOE mobile app, log in using your Emirates ID, then access the renewal section. Choose your preferred term, either one or two years, select your payment plan, and complete the transaction using a debit or credit card. A grace period of three months is allowed after expiry, but delays beyond that result in fines and reset your eligibility period.
Is ILOE Dubai insurance mandatory?
Yes, ILOE insurance is mandatory for all employees working in the private sector and federal government across the UAE. Failure to subscribe within four months of starting a job or allowing the policy to lapse beyond the three-month grace period can lead to fines and potential delays in visa-related processes.
What insurance covers job loss?
In the UAE, job loss is covered by the Involuntary Loss of Employment (ILOE) insurance scheme. It provides monthly cash compensation for up to 3 months to eligible employees who lose their jobs involuntarily, helping them manage expenses while seeking new work.
