UAE job loss insurance: 3 fines for violations, failure to subscribe before June 30

Deadline applies to all employees of both private companies and government entities

By Web Desk

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Published: Wed 26 Apr 2023, 3:26 PM

Last updated: Wed 31 May 2023, 12:48 PM

The grace period for unemployment insurance subscription is ending soon — and employees who fail to meet the June 30 deadline will have to pay penalties.

It is mandatory for all employees of both the public and private sectors to sign up for the scheme under Federal Decree-Law No. 13 of 2022. Subscription opened on January 1, 2023.

Officially called Involuntary Loss of Employment (ILOE) insurance, it seeks to provide residents with financial security in case they lose their jobs due to reasons other than disciplinary action or resignation.

After the June 30 deadline, stiff fines shall be imposed on those who fail to comply with the law — including those who do not subscribe. Unpaid penalties shall be deducted either from the employees' salary or end-of-service benefits.

Here are three penalties and violations that have been specified in the law:

1. Dh400 fine: For employees who fail to subscribe to the scheme before June 30, 2023.

2. Dh200 fine: For failing to pay premiums for more than three months from the due date. (This violation will also lead to the cancellation of insurance certificate)

3. Dh20,000 fine for every case: For employers who will be caught colluding with the insured to obtain unemployment insurance benefits


Those covered by unemployment insurance could get up to 60 per cent of their average basic salaries in case they lose their jobs. The cash benefit shall be provided shall be provided for a maximum of three consecutive months per claim.

However, to make a claim, an employee should have paid the premium for at least 12 consecutive months. Proof of involuntary job loss shall be submitted within 30 days, and other conditions apply.

How much does it cost?

Those earning a basic salary of Dh16,000 and below will pay Dh63 (including VAT) every year for the insurance; while those getting more than Dh16,000 can subscribe for Dh126 a year.

Employees can subscribe through the ILOE portal ( or via its official app. Payments can also be done via exchange centres, business centres, kiosks, bank apps, ATM machines, and other payment kiosks. An SMS channel will also be opened soon.


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