UAE Unemployment Insurance (ILOE) for Pakistani Workers: AED 5 a Month, Up to 3 Months Paid
ILOE is mandatory for UAE private sector staff. See the AED 5 and AED 10 plans, the 60% payout, the 12 month wait and how to claim within 30 days. Read on.
Short answer: If you work in the UAE private sector or federal government, you must subscribe to the Involuntary Loss of Employment (ILOE) scheme. The plan costs AED 5 a month plus VAT if your basic salary is AED 16,000 or less, and AED 10 a month above that. If you lose your job without fault, it pays 60% of your basic salary for up to 3 months.
A Pakistani electrician in Sharjah gets his contract cancelled after four years. He has a month of rent saved and a family waiting on a transfer. If he paid into ILOE, a claim can bring in cash while he looks for the next employer. If he never subscribed, he gets nothing from this scheme.
We read the official ILOE page and its FAQ page on 12 October 2026. This guide uses the figures on those two pages. Where a figure was not there, we say so.
ILOE is mandatory for most UAE employees
The ILOE page says subscription is mandatory for all private sector and federal government employees. It covers Emiratis and residents. The scheme comes from Federal Decree Law No. 13 of 2022. It pays a monthly cash benefit to people who lose a job for reasons other than disciplinary action or resignation.
Five groups are exempt: investors who own the company they work at, domestic helpers, temporary contract workers, people under 18, and retirees who draw a pension and then join a new job. If you hold a normal work permit issued by the Ministry of Human Resources and Emiratisation (MOHRE), you are almost certainly inside the scheme. Our guide to the UAE work visa from Pakistan explains how that permit is issued.
Two plans, set by your basic salary
Category A is for a basic salary of AED 16,000 or below and costs AED 5 plus VAT a month. Category B is for a basic salary above AED 16,000 and costs AED 10 plus VAT a month. The plan runs for 1 year or 2 years, and the full VAT is added to the first payment.
| Item | Category A | Category B |
|---|---|---|
| Basic salary | AED 16,000 or below | Above AED 16,000 |
| Premium | AED 5 + VAT a month | AED 10 + VAT a month |
| Maximum benefit | AED 10,000 a month | AED 20,000 a month |
| Longest payout per claim | 3 consecutive months | 3 consecutive months |
The scheme works on basic salary, not on housing or transport allowances. If your contract does not state a basic salary, such as a commission job, the FAQ says you may choose the category yourself.
The payout is 60% of basic salary, for up to 3 months
The monthly compensation is 60% of your average basic salary over the 6 months before you lost the job. One claim pays for at most 3 consecutive months. Over your whole working life in the UAE, the total cannot pass 12 monthly benefits, however many claims you make.
A worked example, using our own arithmetic. A worker on a basic salary of AED 3,000 would get 60% of that, which is AED 1,800 a month, for up to 3 months. The scheme does not pay on top of that for allowances.
You can claim only after 12 months of paid premiums
Cash benefit goes only to workers who paid the premium for at least 12 consecutive months. You must also have paid every premium on the schedule you chose. A gap of more than 3 months in payment can cancel the policy and you must start again with a new policy.
The FAQ lists more conditions. The job loss must be for a reason other than resignation. You must not have been dismissed for disciplinary reasons under the labour law. You must file within 30 days of termination or of the settlement of a labour complaint. You must not have an absconding complaint against you. You must be legally present in the UAE.
That last condition links to your visa status. Read our note on the UAE overstay fine for Pakistanis if you are close to the end of a status period.
How to subscribe and how to claim
Subscribe on the ILOE portal or the ILOE mobile app, which the page says are free of charge. Other channels add a service charge. You claim on the same portal or app, or by phone, within 30 days of your termination.
- Open the ILOE portal or app and choose your sector, private or federal government.
- Enter your Emirates ID and mobile number, then enter the OTP sent to the phone.
- Pick Category A or B, a 1-year or 2-year policy and a payment schedule.
- Pay the first instalment. VAT for the full period is added to it.
- Open the portal later and tap View Policy Details to see your certificate.
- If you lose your job, file the claim within 30 days on the portal, in the app or at 600 599 555.
If the portal cannot find your data, the page says private sector staff should raise a support ticket with MOHRE. Federal government staff should ask the human resources department of their entity. Other channels listed on the page are Al Ansari Exchange branches and its app, Tawjeeh and Tasheel centres, an SMS with your Emirates ID number to 2120, bank apps and ATMs, kiosks and Botim.
Check that your employer is not deducting without paying
ILOE is your policy, in your name. If a payslip shows an ILOE deduction, open View Statement on the portal and check that the premium is recorded. A missing record means the policy may lapse without you knowing.
If your pay or end-of-service money is also in dispute, our guide to filing a MOHRE labour complaint covers that route. A Pakistani worker who is stuck can also read how to recover unpaid dues through OPF.
Common questions
Is ILOE compulsory for Pakistanis working in the UAE?
Yes, for private sector and federal government employees. The ILOE FAQ says subscription is mandatory. Domestic helpers, investors, temporary contract workers and those under 18 are exempt.
How much does ILOE cost a month?
AED 5 plus VAT for a basic salary of AED 16,000 or below, and AED 10 plus VAT above that. Both are read from the ILOE page. VAT for the whole period is added to the first instalment.
How long does ILOE pay?
Up to 3 consecutive months per claim, at 60% of average basic salary. The cap is AED 10,000 a month for Category A and AED 20,000 for Category B. The lifetime total cannot pass 12 monthly benefits.
Can I claim in my first year?
No. The scheme requires at least 12 consecutive months of premiums before a claim. Subscribe as early as you can so the clock starts.
What if I resign?
You cannot claim. The scheme covers job loss for reasons other than resignation or a disciplinary dismissal.
What is the fine for not subscribing?
The ILOE page does not state a figure. The FAQ says only that unpaid premiums for more than 3 months cancel the policy and a fine applies under the law. Check the amount with MOHRE before you pay anyone who quotes one.
How we verified this
What we checked, where we read it, and what we could not confirm.
We read the ILOE home page and FAQ on 12 October 2026 at iloe.ae. The helpline on that page is 600 599 555. We did not subscribe, because that needs a real Emirates ID. Premium and benefit figures can change by ministerial decision, so confirm them on the portal before you pay.
About the author
Global Affairs & Political Economy Writer
Muhammad Hatim is a book lover who started writing because he enjoys it. At Pakistan Era he writes about international relations, geopolitics and the global economy, with a particular interest in South Asia and the forces behind current events.
