Table of Contents
- ILOE claim rules in one table
- Who can claim ILOE compensation after losing a job?
- Can I claim ILOE if I resigned?
- How much ILOE compensation will I get?
- How to claim ILOE compensation: 6 steps
- When does ILOE compensation stop?
- Why ILOE claims get rejected
- Can I claim ILOE a second time?
- ILOE is separate from your final settlement
- What HR teams should do when letting someone go
- Get terminations and final settlements handled cleanly
- FAQs on ILOE compensation after job loss
Last updated: 12 November 2026 | Reviewed by: M. A. Farahat, ACPA, CFE, CICA
If you lose your job in the UAE and have subscribed to ILOE (the Involuntary Loss of Employment scheme) for at least 12 consecutive months, you can claim compensation of 60% of your subscription salary for up to three months, capped at AED 10,000 a month in the first category (salary of AED 16,000 or less) and AED 20,000 in the second. Submit the claim on iloe.ae or the ILOE app within 30 days of your employment ending, and the insurer pays an eligible claim within two weeks, under Cabinet Resolution No. 97 of 2022. Resignation, disciplinary dismissal and an absconding report all disqualify a claim, and payments stop if you start a new job.
The 30-day window is the step people miss. The weeks after a termination go on job hunting, visa questions, and the final settlement, and ILOE only comes to mind after the 30 days have run out. Submitting the claim costs nothing and doesn’t commit you to staying unemployed, so file it in the first week.
ILOE claim rules in one table
| Rule | What applies |
|---|---|
| Compensation | 60% of the subscription salary, paid monthly |
| Monthly cap | AED 10,000 (first category) or AED 20,000 (second category) |
| Duration per claim | Up to 3 months from the date of unemployment |
| Lifetime limit | 12 monthly payments across your whole UAE working life |
| Minimum subscription | 12 consecutive months, with premiums paid |
| Claim deadline | 30 days from the end of employment, or from the court ruling on a labour complaint |
| Payment timing | Within 2 weeks of an eligible claim, to the account you nominate |
| Where to claim | iloe.ae or the ILOE app |
| Legal basis | Federal Decree-Law No. 13 of 2022 and Cabinet Resolution No. 97 of 2022 |
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Who can claim ILOE compensation after losing a job?
Under Article 8 of Cabinet Resolution No. 97 of 2022, all of these must be true:
- You subscribed to ILOE for at least 12 consecutive months before losing your job.
- Your premiums are paid up on the schedule you chose.
- You didn’t resign. The scheme covers involuntary job loss only.
- You weren’t dismissed for a disciplinary reason.
- There’s no absconding (work abandonment) report against you.
- The claim isn’t fraudulent, and the employer isn’t fictitious.
- The job loss wasn’t the result of a strike or non-peaceful protest.
- You’re legally resident in the UAE.
Subscription itself is compulsory for federal government and private-sector employees. Investors who own their establishment, domestic workers, employees on temporary contracts, people under 18, and pension-receiving retirees in a new job are outside the scheme. Our UAE unemployment insurance guide covers subscribing, premiums, and the AED 400 fine for not registering.
Can I claim ILOE if I resigned?
No. Article 8 requires proof that unemployment wasn’t the result of your resignation. The same applies to dismissal for a disciplinary reason. If your termination is in dispute and goes to court, the 30-day claim window runs from the court’s ruling on the labour complaint rather than your last working day.
How much ILOE compensation will I get?
Monthly compensation = subscription salary × 60%, up to the category cap
| Subscription salary | Category | 60% | Monthly payment | Maximum over 3 months |
|---|---|---|---|---|
| AED 8,000 | First | AED 4,800 | AED 4,800 | AED 14,400 |
| AED 25,000 | Second | AED 15,000 | AED 15,000 | AED 45,000 |
| AED 40,000 | Second | AED 24,000 | AED 20,000 (capped) | AED 60,000 |
The percentage applies to the salary your subscription is based on, not your full package. An employee whose allowances make up half their pay gets 60% of the basic figure used for the subscription, which can be a much smaller number than they expect. Check which category you’re registered in on iloe.ae before you need it, because a salary rise past AED 16,000 doesn’t move you to the second category unless your subscription is updated.
How to claim ILOE compensation: 6 steps
- Log in to iloe.ae or the ILOE app with your Emirates ID details.
- Open the claims section and submit the claim within 30 days of your employment ending.
- Give the details of your termination and attach what the portal asks for, including your bank account (IBAN) for payment.
- Track the claim status in the same portal. The insurance pool verifies eligibility with MoHRE records, including how your employment ended.
- Receive the first payment within two weeks of an eligible claim.
- Tell ILOE if you start a new job, because payments stop from that point and wrongly received amounts are recoverable.
When does ILOE compensation stop?
| Event | Effect |
|---|---|
| Three monthly payments made | The claim ends; this is the per-claim maximum |
| You join a new employer | Payments stop from the date you’re employed (Article 5 of the law) |
| You leave the UAE permanently | Legal residence in the UAE is an eligibility condition, so payments don’t continue after you leave |
| You’ve received 12 monthly payments in total | No further compensation in your UAE working life |
| Fraud or false information found | The claim is cancelled and amounts can be recovered |
Taking a new job before the three months are up isn’t a loss. The unused months stay within your 12-payment lifetime allowance instead of being spent.
Why ILOE claims get rejected
- The claim was submitted more than 30 days after employment ended.
- The subscription started less than 12 months before the job loss, or lapsed in between, so the months weren’t consecutive.
- Premiums were unpaid. An AED 200 fine for three months of non-payment also blocks a clean record.
- MoHRE records show the contract ended by resignation, or a disciplinary dismissal under Article 44 of the Labour Law.
- An absconding report is open against the employee.
- The employer turns out to be fictitious, which can also lead to prosecution.
If a rejection looks wrong, for example a resignation code used for what was really a termination, raise it with your employer and MoHRE quickly: the correction has to land within the claim window.
Can I claim ILOE a second time?
Yes, if you meet the conditions again. Each claim needs 12 consecutive subscribed months behind it, so after a claim you need a fresh 12-month run with your new employer before another job loss would qualify. Across your whole time in the UAE labour market, ILOE pays at most 12 monthly payments.
ILOE is separate from your final settlement
Article 6 of the law says the compensation doesn’t prejudice any other entitlement. ILOE payments don’t reduce what your employer owes: the full final settlement is still due within 14 days of the contract ending, covering last salary, notice pay if notice wasn’t served, unused leave and gratuity. Our final settlement and gratuity guide and notice period guide cover those calculations. Keep the two tracks separate: a delayed settlement is a MoHRE complaint, not an ILOE matter.
Mind the interaction with your work permit and visa timelines too. The employer cancels the permit after confirming you’ve received your dues, and your legal presence in the UAE is a condition for ILOE payments, so plan the grace period before booking a one-way flight mid-claim.
What HR teams should do when letting someone go
- Record the real termination reason in MoHRE systems. A mislabelled resignation blocks a legitimate ILOE claim.
- Tell the employee about the 30-day ILOE window in the termination meeting, in writing. It costs nothing and softens a hard conversation.
- Clear any absconding reports or disputes before the contract is cancelled.
- Pay the final settlement within 14 days, and keep it separate from anything ILOE pays.
- Remind leavers who stay in the UAE to keep their ILOE subscription active in the new job, since a lapse resets the 12 consecutive months.
More UAE guides: ILOE subscription, costs and fines | UAE Labour Law 2027 guide | Limited vs unlimited contracts
Get terminations and final settlements handled cleanly
As a payroll company in the UAE, we calculate final settlements, pay them through WPS within the 14-day deadline and document termination reasons so leavers’ ILOE claims aren’t blocked by a wrong code. Our HR team runs the offboarding checklist from notice to work permit cancellation. Send us your headcount for a quote.
Looking for Expert Support?
Connect with our experienced team for trusted advice and dedicated assistance. We’re committed to supporting you throughout the entire process.
FAQs on ILOE compensation after job loss
Sources:
UAE Government Portal: Insurance against job loss |
Cabinet Resolution No. 97 of 2022 on implementing the Unemployment Insurance Scheme |
Federal Decree-Law No. 13 of 2022 on the Unemployment Insurance Scheme |
ILOE: Involuntary Loss of Employment scheme portal
