The UAE's unemployment insurance scheme has nine million subscribers. Getty Images
The UAE's unemployment insurance scheme has nine million subscribers. Getty Images
The UAE's unemployment insurance scheme has nine million subscribers. Getty Images
The UAE's unemployment insurance scheme has nine million subscribers. Getty Images

How to avoid losing out on UAE unemployment insurance benefits


Salam Al Amir
  • English
  • Arabic

The UAE's unemployment insurance scheme, launched two years ago, has become a critical safety net for workers. It has about nine million subscribers, with almost seven million of them signing up in the first year, according to the Ministry of Human Resources and Emiratisation.

The Involuntary Loss of Employment programme (ILOE) pays employees who lose their jobs up to 60 per cent of their basic salary for a maximum of three months, or until they find new employment, whichever is sooner.

It is mandatory for all Emiratis and expat employees in private and public sector jobs and in free zones, with a fine of Dh400 ($108) for those who do not pay the premiums or renew their policy.

The scheme’s aim is not just to support the unemployed but also to attract and retain global talent. However, certain oversights can disqualify employees from claiming benefits.

Understanding the rules and avoiding common mistakes are vital to ensuring financial security during unexpected employment gaps.

12-month lock-in

A key requirement of the unemployment insurance scheme is the 12-month lock-in period. Employees must remain enrolled for a full year to be eligible for benefits. This can span multiple employers if payments are made consistently.

Nida Al Masri, consultant at Justitia Advocates and Legal Consultants, explained: “Simply paying the insurance in full doesn’t entitle a person to the benefits if the mandatory time period has not been completed.”

The minimum commitment period aims to prevent fraud or misuse of the insurance system. “For example, if someone is aware their employment may end for whatever reason, they could [otherwise] pay the insurance in full and then claim the compensation,” Ms Al Masri said. “The law specifies such timeframes to ensure commitment and stability for the insurer and the insured.”

A Jordanian employee of a public relations company in Dubai, who wished to keep her identity anonymous, lost out on the compensation after failing to complete the 12-month mandatory period. She registered last May after initially forgetting to do so, and even paid a fine for late enrolment. However, when she lost her job, she said she could not access the benefits.

Speaking to the The National, she said she regretted not reading the fine print. “If I had received the insurance payout, it would have eased my worries, especially with three children in school, fees to cover, rent and other living expenses,” she said.

Ms Al Masri said such employees might be able to explore legal channels to request a refund. “Since this is a relatively new concept, there may not yet be a specific legal provision addressing this scenario. In such cases, we rely on civil laws, which generally state that retaining funds unlawfully acquired from others is impermissible.”

Know your rights

Recruitment expert Claire Donnelly believes employees are still not fully aware that they are responsible for registering with the ILOE programme. “I don't think it's particularly well-known,” she said.

Linking the insurance to the visa process and increasing the scheme's validity to two years could ensure compliance, she added. “This would make sure it happens, and employers would have control over it,” she explained. “The main problem for employers is having to chase people to make sure they've got it. It's not [employers'] responsibility, but it's something they need to educate employees on.”

Ms Donnelly added that part-timers must register because they are categorised as permanent employees. “As for freelancers, only if they are on a long-term freelance with an employer will they need to enrol.”

How to claim compensation

  • Employees must subscribe to the programme by registering on the official website, or via its smart app, the employee’s bank, ATMs, money exchange companies, business service centres, kiosk machines, du and Etisalat or directly with an insurance company.
  • Renewals can be completed using the same channels.
  • Eligible people can claim benefits after a minimum of 12 months of enrolment.
  • They need to prove their dismissal was beyond their control and not due to disciplinary reasons or resignation.
  • Claims must be filed within 30 days of job loss through the official website. Individuals must log in using their Emirates ID and mobile phone number.
  • After cancelling their work permit, they need to submit their claim by confirming the cancellation reason and choose their preferred payment method.
  • They will receive updates via their registered email and mobile number. They can also track the status in the “My Claims” section of their account.
  • Payouts are processed within two weeks of filing a claim.

How much does the insurance cover cost?

The cost of the insurance programme is divided into two categories. The cost for employees earning a basic salary of Dh16,000 or less a month has been set at Dh5 per month, or Dh60 annually.

Meanwhile, workers who earn a monthly basic salary of Dh16,000 or more will pay Dh10 per month, or Dh120 a year.

What job protection does the region offer?

The UAE's unemployment insurance is similar to systems in place in Bahrain and Saudi Arabia.

In Bahrain, unemployment insurance was introduced in 2006 and provides benefits to unemployed Bahrainis and expatriates, including first-time job seekers. The system is funded through a three per cent contribution on wages, equally split between employers, employees and the government.

Saudi Arabia has provided unemployment benefits since 2011. However, its insurance scheme is only targeted at unemployed Saudi nationals, including first-time job seekers and people with disabilities aged between 20 and 35.

Why the Tourist Club?

Originally, The Club (which many people chose to call the “British Club”) was the only place where one could use the beach with changing rooms and a shower, and get refreshments.

In the early 1970s, the Government of Abu Dhabi wanted to give more people a place to get together on the beach, with some facilities for children. The place chosen was where the annual boat race was held, which Sheikh Zayed always attended and which brought crowds of locals and expatriates to the stretch of beach to the left of Le Méridien and the Marina.

It started with a round two-storey building, erected in about two weeks by Orient Contracting for Sheikh Zayed to use at one these races. Soon many facilities were planned and built, and members were invited to join.

Why it was called “Nadi Al Siyahi” is beyond me. But it is likely that one wanted to convey the idea that this was open to all comers. Because there was no danger of encountering alcohol on the premises, unlike at The Club, it was a place in particular for the many Arab expatriate civil servants to join. Initially the fees were very low and membership was offered free to many people, too.

Eventually there was a skating rink, bowling and many other amusements.

Frauke Heard-Bey is a historian and has lived in Abu Dhabi since 1968.

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Tips to stay safe during hot weather
  • Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
  • Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
  • Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
  • Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
  • Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
  • Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
  • Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
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Updated: January 05, 2025, 10:52 AM`