Losing your job unexpectedly can be overwhelming—especially when your financial stability is suddenly at risk. That’s exactly why the UAE introduced ILOE (Involuntary Loss of Employment) Insurance, a mandatory unemployment protection scheme for employees in both the private and federal sectors.
But here’s the challenge:
Thousands of UAE residents struggle to get their ILOE claims approved because they don’t follow the correct steps, submit incomplete documents, or miss the strict 30-day deadline.
This comprehensive guide from Business & Beyond Consulting LLC gives you the most accurate, updated, and rejection-proof method to file your ILOE claim in 2025.
You will learn:
✔️ Step-by-step claim process
✔️ Claim timeline examples
✔️ Eligibility rules
✔️ Required documents
✔️ How claim amounts are calculated
✔️ Common rejection reasons (and how to fix them)
✔️ Penalties, renewal rules, and special scenarios
✔️ Expert tips to ensure 100% approval
Let’s begin.
What Is ILOE Insurance in UAE?
ILOE (Involuntary Loss of Employment) Insurance is a mandatory unemployment protection scheme introduced in 2022 and enforced for all employees from 2023 onwards. Its purpose is to provide temporary financial support when you lose your job due to reasons beyond your control.
✔ Key Features of ILOE
- Available to both expat and UAE national employees
- Covers public and private sector workers
- Provides compensation for up to 3 months per claim
- Maximum benefit capped at AED 10,000 or AED 20,000 per month
- Payout equals 60% of your last basic salary
- Mandatory for employees aged 18 to 60
- Can be purchased through official apps, banks, exchanges, or SMS
ILOE exists to ensure financial stability while you search for a new job—but only if you claim it correctly.
ILOE Insurance Cost in UAE (2025 Pricing)
ILOE policies are divided into two categories based on basic salary.
Category A — AED 5/month
| Salary Range | Premium | Maximum Monthly Claim | Maximum Duration |
|---|---|---|---|
| AED 16,000 or below | AED 5 | AED 10,000 | Up to 3 months |
Category B — AED 10/month
| Salary Range | Premium | Maximum Monthly Claim | Maximum Duration |
|---|---|---|---|
| Above AED 16,000 | AED 10 | AED 20,000 | Up to 3 months |
Payment Frequency:
Monthly / Quarterly / Semi-Annual / Annual
What if your salary changes?
- Salary increases: You must pay the difference in premium retroactively.
- Salary decreases: Your next renewal will shift you to the correct category.
- Failure to update salary can lead to claim rejection.
ILOE Eligibility Checklist — Before You Apply
You are eligible to claim ILOE only if ALL conditions below are met:
| Requirement | Must You Meet It? | Notes |
|---|---|---|
| Age 18+ | ✔ Yes | Mandatory |
| Minimum 12 months of premium paid | ✔ Yes | Continuous coverage required |
| Termination reason is “involuntary” | ✔ Yes | No resignation or misconduct |
| Valid UAE residency | ✔ Yes | Must remain in country |
| Contract is not temporary | ✔ Yes | Temporary workers not covered |
| No pending labour disputes | ✔ Yes | Must clear all MOHRE issues |
| Premiums paid on time | ✔ Yes | No late payments |
| Claim submitted within 30 days | ✔ Yes | Very strict deadline |
If even one condition is not met → Claim will be rejected.
How ILOE Claim Amount Is Calculated (with Examples)
Payout = 60% of your last basic salary (for max 3 months)
Capped at AED 10k or AED 20k based on category.
Example 1: Salary AED 4,500 (Category A)
- 60% × 4,500 = AED 2,700/month
- Duration: Up to 3 months
Total possible payout: AED 8,100
Example 2: Salary AED 18,000 (Category B)
- 60% × 18,000 = AED 10,800
- Capped at AED 10,000
- Duration: Up to 3 months
Total possible payout: AED 30,000
Example 3: Salary AED 8,000 but employee resigns
→ No payout (resignation not eligible)
How to Claim ILOE Insurance in UAE — Step-by-Step Guide
This is the most important section. Follow these steps exactly to avoid delays or rejection.
STEP 1 — Confirm Your Policy Status
Before filing a claim, check:
- Policy is active
- At least 12 months of contributions completed
- All premiums paid on time
- Salary is updated in the system
If your policy lapsed, expired, or has unpaid premiums → claim will be rejected immediately.
STEP 2 — Gather All Required Documents
Prepare the following:
✔ Mandatory Documents
- Emirates ID
- ILOE Certificate of Insurance
- Cancelled work permit (MOHRE) stating termination
- Employer termination letter
- Stamped bank statement (last 6 months)
- Employment contract (attested if requested)
- Stamped EOSB statement
✔ Additional Required Documents
- Travel report (shows UAE residency during unemployment)
- Labour complaint clearance (if applicable)
STEP 3 — Submit the ILOE Claim Application
You can submit your claim through:
1. ILOE Mobile App
2. Official ILOE Website
Upload documents → Fill form → Add bank details.
3. Call Center
📞 600 599 555
Make sure all uploads are:
- Clear
- In colour
- Uncropped
- Legible
STEP 4 — Provide Travel Report (Critical)
You must prove that you remained inside the UAE after job loss.
Get the travel report from:
Leaving the UAE before claim approval → automatic rejection.
STEP 5 — Choose Payout Method
You can receive your payout via:
✔ Bank Transfer
Money is deposited within 7–10 business days after approval.
✔ Cash Collection (Al Ansari Exchange)
Available across UAE; bring Emirates ID.
STEP 6 — Track and Follow Up
The provider has 30 days to evaluate your claim.
You can track the status:
- On the app
- On website
- Using reference number
- By calling 600 599 555
If they ask for additional documents → You MUST upload them within the given deadline.
ILOE Claim Timeline Example (Day-by-Day)
Example: Job Terminated on 1 March 2025
| Day | Action |
|---|---|
| Day 1 | Employer cancels work permit |
| Day 2–3 | You obtain termination letter |
| Day 3–5 | Collect EOSB + bank statements |
| Day 5–7 | Download travel report |
| Day 7 | Submit ILOE claim |
| Day 7–30 | ILOE reviews your application |
| Day 30–37 | Claim approved & payout released |
Final deadline to submit claim: 31 March 2025
Missing this deadline → 100% rejection.
Top 10 Reasons ILOE Claims Get Rejected (And How to Fix Them)
This is one of the strongest value-add sections missing in competitor blogs.
1. Employee resigned
✔ Only involuntary termination qualifies.
2. Work permit cancellation reason is not “termination”
Fix: Ensure employer selects “termination by employer”.
3. Less than 12 months of premium paid
Fix: Wait until 12 months completed.
4. Late premium payments
Fix: Pay arrears immediately before applying.
5. Claim submitted after 30 days
Fix: Never delay claiming once terminated.
6. Employee left UAE before claim
Fix: Stay within UAE until first payout.
7. Salary not updated after increment
Fix: Update salary BEFORE filing a claim.
8. Bank statements not stamped
Fix: Download stamped PDF only.
9. Incomplete documents
Fix: Submit clear, colour copies.
10. Labour complaint pending
Fix: Resolve all MOHRE cases first.
Special Case Scenarios (Most Blogs Don’t Cover This)
1. Free Zone Employees
ILOE applies to:
- Mainland employees
- Free zone employees
- Semi-government staff
But the work permit cancellation must still show termination.
2. Termination During Probation
Eligible ONLY if employer terminates.
Not eligible if you resign during probation.
3. Employee Changes Job
Your claim remains valid as long as:
- You filed within 30 days
- You updated employment details after joining new company
- All premiums are up-to-date
4. Visa Cancelled but Employee Stays in UAE
Still eligible — but must provide travel report proving you did not leave UAE.
5. Salary Increase Without Updating ILOE
This causes major rejections.
Solution: Update salary → Pay difference → Then claim.
What Happens After Your ILOE Claim Is Submitted?
After you file:
- Claim is reviewed
- Provider may request more documents
- Final decision issued within 30 days
If approved:
- First payout within 7–10 business days
- Next two months paid automatically (if you remain unemployed)
Penalties for Not Subscribing or Not Paying ILOE
| Violation | Penalty |
|---|---|
| Failure to subscribe within 4 months | AED 400 |
| Failure to pay premium on time | AED 200 |
| Penalties unpaid | No new work permit issued |
| Insurance cancelled due to non-payment | Must reapply |
Penalties may also be deducted from gratuity or bank account.
What To Do If Your ILOE Claim Is Rejected
If rejected:
- Review rejection reason
- Fix the issue
- Re-submit the claim immediately
- If still unsatisfied, dispute through:
- ILOE website / app
- Email: claims@iloe.com
- Call center
- MOHRE grievance (final resort)
How to Renew ILOE Insurance
You can renew through:
Documents needed:
- Emirates ID
- Local UAE mobile number
Missing renewal → AED 200 penalty + certificate cancellation.
Recommended: Final No-Rejection Checklist
Before submitting your claim, ensure:
✔ 12 months of timely premium paid
✔ Work permit cancellation shows “termination”
✔ All documents are stamped & in colour
✔ Salary updated in ILOE system
✔ Claim submitted within 30 days
✔ Travel report shows no exit from UAE
✔ Bank details match your identity
✔ No labour disputes pending
Frequently Asked Questions
No. Only involuntary termination qualifies.
You must submit your claim within 30 days of termination.
AED 10,000 or AED 20,000 depending on category.
60% of last basic salary.
Up to 30 days.
Within 7–10 business days after approval.
Yes.
No — employee pays the full premium.
Yes, if employer terminates you
No. Disputes must be closed first.
No. Claim will be rejected.
Yes — through ILOE and MOHRE.
No.
No — update salary BEFORE termination.
No.
No
Yes — via Al Ansari Exchange.
Termination letter, cancelled work permit, bank statements, EOSB, etc.
No — as long as termination is valid.
Payments stop immediately upon new employment.
Final Thoughts — Let Business & Beyond Guide You
Navigating UAE’s employment rules can be complicated—especially after job loss.
If you need help with:
✔ ILOE claim assistance
✔ Work permit cancellation
✔ PRO services
✔ Visa processing
✔ Business setup after job loss
Business & Beyond Consulting LLC is here to support you with expert guidance.
📞 +971 50 502 5594
Book a free consultation
WhatsApp us anytime
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