Imagine: you work in the UAE, have a stable job and everything seems to be going well. But suddenly the risk of dismissal appears on the horizon. It is for such situations that the ILOE (Involuntary Loss of Employment) unemployment insurance program was created, which allows you to receive monetary compensation if you suddenly lose your job for reasons beyond your control, Khaleej Times has reported.
ILOE was launched by the UAE Ministry of Human Resources and Emiratization, and subscription to this program is mandatory for both citizens and expats in the public and private sectors. This requirement is in effect from January 2023, so if you have not yet subscribed or forgotten to renew your policy, you will face a fine of 400 dirhams. It sounds daunting, but stay positive: renewing your ILOE is not at all difficult, and today I will explain in detail how to do it to avoid unnecessary expenses and maintain peace of mind.
How to renew your ILOE insurance
- 1. Go to the official ILOE website: https://www.iloe.ae/
- 2. Find the red “Subscribe/Renew here” button and click on it.
- 3. Select your category in the “Individual” section:
- Private Sector
- Federal Civil Servant (Public Sector)
- Not registered with MOHRE (free zone workers)
- 4. Click “Confirm” and select your authorization method:
- Login using OTP sent to your phone number
- Login via personal account (if available). If you are authorizing via OTP, enter your Emirates ID, registered mobile number and date of birth in the format requested.
- 5. Make sure all details are up to date and select the policy term, then click “Renew” or “Subscribe”.
- 6. Pay for the policy using your preferred method (bank card) and your insurance will be extended for another year after the transaction is successful.
If you encounter any technical difficulties or errors during any of these steps, please call ILOE Customer Service at 600599555. The cost depends on your base salary:
- Category One (base salary AED 16,000 or less) – AED 5 per month (AED 60 per year).
- Category Two (base salary above AED 16,000) – AED 10 per month (AED 120 per year).
How to use insurance
Those who have worked under the ILOE policy for at least 12 months and who have been dismissed for non-disciplinary reasons and not of their own free will can take advantage of the insurance. If this happens to you, you have 30 days from the date of dismissal to file a claim:
- Through the electronic portal of the insurance pool
- In the smart application
- Through the ILOE call center
The insurance company must pay the funds within two weeks from the date of application, and the maximum duration of payments is three consecutive months.
- The amount of compensation is 60% of the average basic salary for the last six months.
- Category A: maximum 10,000 dirhams per month.
- Category B: maximum 20,000 dirhams per month.
However, not all residents need an ILOE: the program does not apply to investors or business owners, domestic helpers, minor workers (under 18 years old), part-time workers, and pensioners who already receive a pension and have a job at the same time. However, if you work full-time in the public or private sector, including the Freezone, it is worth taking out or renewing an ILOE policy in a timely manner – and then you will not be afraid of any penalties.