ILOE Insurance Scheme (ILOE) 

The UAE has announced the implementation of the Federal Decree Law No. 13 of 2022 concerning the “Involuntary Loss of Employment (ILOE)”. This scheme provides security for employees who have lost their jobs due to reasons other than disciplinary action or resignation, until they find new employment. 

This scheme will be compulsory to all employees in the UAE working in the government and private sector (but will not be applicable to free-zone company employees)- this also applies to employees who have a UAE labour contract but aren’t based in the UAE full-time.

Employees must register by 30th June 2023 and will be fined AED 400 if registration has not been completed by this date.

Please note that this is a personal requirement and not a company requirement, so it is an employee’s personal responsibility to register themselves.

The following are exempt from the new ILOE scheme:-

  • Company Investors/Shareholders
  • Temporary or Contracted Workers
  • Domestic Workers
  • Children (under 18)
  • Retirees
  • Employees in Free Zone Companies

The insurance is offered by Dubai Insurance and annual premiums will cost between AED 60 – AED 120 annually, subject to the employee’s basic salary.

Please note the new scheme applies to local, mainland (DED) companies only- free-zone companies are exempt.

For more information regarding the scheme please visit: ILOE – Dubai Insurance.


Disclaimer: The material provided on this website does not constitute financial advice and is for information purposes only, the information provided is subject to change without notice.

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