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Mandatory UAE Unemployment Insurance Scheme: Subscribe now to avoid fines

Step-by-step guide to subscribe

UAE Unemployment Insurance

UAE unemployment insurance for Emirati and foreign employees in the public and private sectors has come into effect starting January 1, 2023. 

It is mandatory for all employees of the public and private sector to be registered for the unemployment insurance scheme. Not registering for the mandatory unemployment insurance scheme will result in financial penalties for all employees working in the UAE.

So, if you are employed in the private or public sector in the UAE, subscribe to the government-mandated Unemployment Insurance scheme now to avoid fines, as the scheme is mandatory and those who haven’t enrolled by the June 1 deadline will face penalties after the one-month grace period concludes on June 30.

The mandatory job loss insurance is applicable for all employees in the Emirates including freezone and semi-government workers. According to the Ministry of Human Resources and Emiritisation (MoHRE), more than two million people had registered for the scheme as of May 18, 2023.

UAE Unemployment Insurance for Emiratis and Residents

The UAE’s Ministry of Human Resources and Emiratisation (MoHRE) first announced the Unemployment Insurance Scheme for all government and private sector employees back in May. As announced by the Minister of Human Resources and Emiratisation, H.E. Dr Abdulrahman Al Awar, this programme will financially support Emiratis and residents who lose their jobs, with up to three months of compensation.  It stemmed from the Federal Decree-Law No. 13 of 2022.

UAE Unemployment Insurance

Starting from January 1, 2023, all employees – both Emiratis or expatriates – working in the private and federal government sectors are required to register for the involuntary loss of employment scheme. But investors, domestic helpers, temporary contract workers, juveniles under the age of 18 and retirees who’re entitled to a pension and joined a new job are exempted from registering for the scheme.

Which are the applicable plans?

The insurance programme is divided into two categories.

Employees with a basic salary of less than Dh16,000 are required to pay Dh5 per month or Dh60 per annum plus VAT as a premium. They will be compensated with 60 per cent of the average basic salary for the job loss for three consecutive months.

Employees with a basic salary of over Dh16,000 are required to pay Dh10 a month or Dh120 annual premium under this scheme.

Subscription fees can be paid either monthly, quarterly, once every six months or annually.

How do I subscribe to the UAE unemployment insurance scheme?

The Ministry of Human Resources and Emiratisation has signed an agreement with nine local insurance companies to operate and fund the scheme.

The list includes:

  • Dubai Insurance Company
  • Abu Dhabi National Insurance Company
  • Oman Insurance Company
  • Al Ain Ahlia Insurance Company
  • Emirates Insurance Company
  • Orient Insurance
  • Abu Dhabi National Takaful Company
  • National General Insurance Company
  • Orient UNB Takaful Company

The policy period is available for one or two years. Subscription is free of charge from Dubai Insurance but other channels such as exchange houses, telecom firms and banks could charge an additional fee for the services.

In addition to the Dubai Insurance website, subscription to the program’s insurance pool, represented by Dubai Insurance can be done through one of the following channels: the smart application iloe, Kiosk machines, businessmen service centres, Al Ansari Exchange, bank ATMs and application, telecommunication bills. Make sure you have your Emirates ID number and UAE mobile number handy.


The deadline has been split into two periods depending on the date of employment. The majority of employees will need to register by the end of June 2023.

• If the employment contract was signed before February 28, 2023, the deadline for registration is June 30, 2023
• Employees who began their employment after February 28, 2023 must register within four months of the start date of employment

According to the Cabinet Resolution No. 97 of 2022, UAE employees that fail to subscribe to the insurance within the grace period will be required to pay a fine of Dhs400 imposed by the Ministry, and a fine of Dhs200 in case the insured fails to pay the prescribed insurance premiums for more than three months.

Exempted categories: Investors/company owners, domestic helpers, temporary contract workers, juveniles under the age of 18, and retirees.

Step-by-step guide to getting insured on the website:

  1. Visit the Involuntary Loss of Employment (ILOE) website  or app.
  2. click on ‘Subscribe here’, on the website.
  3. Under ‘Individual’, click on your sector: Private or federal government.
  4. Sign in with your Emirates ID number and get a one-time password on your mobile phone number
  5. A welcome screen will display information about your basic salary and the applicable monthly policy premium.
  6. Check the box that says ‘I confirm my personal details are correct’.
  7. Select your policy coverage period: (One or two years).
  8. Select on how you want to pay your premium: Full/annual; semi-annual; quarterly or monthly.
  9. Read and accept the terms and conditions.
  10. Enter the email ID where you wish to receive the insurance certificate.
  11. Enter your card details to make the payment.
  12. After the payment, the insurance certificate will be auto-generated, which is downloaded in a PDF format.


According to MoHRE, anyone who loses their job as a result of termination of services (except for disciplinary reasons or resignation) is entitled to a maximum three-month cash compensation, from the date of an employee’s job loss and will be calculated at 60 per cent of their basic salary over the most recent six months before the loss of employment.

Claims can be submitted through their various channels like the website, app or call centre and the payment will be processed two weeks from the date of the claim submission.

Individuals have to be subscribed for at least 12 consecutive months to be eligible for the compensation.  If the individual leaves the country or finds a new job then they lose the right to the claim.

During the insurance period over the entire work life of the insured in the UAE, the aggregate claim payment shall not exceed 12 monthly benefits (regardless of the number of claims submitted).

If the individual finds a job during the period of compensation entitlement, the payment will cease.

Insured amounts will not be applicable if the employee was dismissed for disciplinary reasons under the Labour Relations Law and Human Resources Law, in addition to any applicable legislation.

Compensation amount:

The unemployment compensation will depend on your monthly basic salary.


Basic salary: Dh16,000 or below.

Premium: Dh5+VAT per month.

Compensation benefit: Up to Dh10,000 per month (maximum up to three months per claim)


Basic salary: Dh16,000 or above.

Premium: Dh10+VAT per month.

Compensation benefit: Up to Dh20,000/month (maximum up to three months per claim).

Eligibility Criteria for compensation

 In order to be eligible for compensation, the insured must meet the following criteria, according to the official Involuntary Loss of Employment Scheme website:

  • There must be a minimum subscription period of 12 consecutive months for the insured in the scheme
  • There must be no interruption in the subscription for 3 consecutive months
  • The insured must be committed to pay all the insurance premiums due on time
  • The insured must prove that the reason of unemployment is not due to resignation
  • The insured may not be dismissed for disciplinary reasons under the Labour Relations Law and the Human Resources Law of the federal government, in addition to any applicable legislation
  • The insured must submit the claim within 30 days from the date of loss of the work relationship, or the settlement of the labour complaint referred to the judiciary
  • The insured worker should not have an existing complaint related to the absence from work
  • The insured shall not be entitled for compensation if there has been fraud or deceit involved in his claim, or if the establishment they work for is fictitious
  • The loss of employment should not be the result of non-peaceful labour strikes or stoppages, whether they result in harm or not
  • The insured must be legally present in the UAE

Benefits of UAE unemployment insurance

The MOHRE has now issued a video guide on social media to explain the benefits and costs of the UAE unemployment insurance.

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