UAE unemployment insurance: Can you file a claim if you have resigned?

Compensations can go as high as Dh20,000 per month for those who pay a Dh10 monthly premium; subscription is set to start soon


Waheed Abbas

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Published: Thu 22 Dec 2022, 11:39 AM

Last updated: Thu 22 Dec 2022, 7:15 PM

Starting January 1, 2023, all employees in the UAE will have to subscribe to the country's unemployment insurance scheme — which guarantees financial security in case one loses his or her job.

Under the scheme, employees will receive a cash benefit for a limited period not exceeding three consecutive months in the event of unemployment — however, not all job loss cases will be covered.

The official website of the Involuntary Loss of Employment (ILOE) insurance scheme has listed certain criteria for eligibility. Those who lost their jobs due to resignation are not entitled to cash benefits.

Here are some of the conditions that the insured must meet:

  • There must be a minimum subscription period of 12 consecutive months, and there should be no interruption in the subscription for three consecutive months. The insured employee should have also paid the premiums on time.
  • He or she should prove that the reason for unemployment is not due to resignation and he was not dismissed for disciplinary reasons.
  • The applicant needs to submit the claim within 30 days from the date of loss of the job 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.
  • He or she shall not be entitled to compensation if there has been fraud or deceit involved in his claim or if the establishment where 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.

However, the government has exempted certain categories from the requirement. These include investors, business owners, domestic workers, temporary employees, juveniles under the age of 18, retirees who receive a pension and have joined a new employer.


There are multiple channels to subscribe to this scheme, from business service centres to bank ATMs, money exchange companies, the insurance pool’s website (, du and etisalat, and via SMS.

In paying premiums, employees may choose from a number of billing options, which can be monthly, quarterly, semi-annual, or annually.

Premium starts from as low as Dh5 a month, Dh60 a year, or Dh120 for two years for employees with a basic salary of Dh16,000 and below. The compensation for this category must not exceed a monthly amount of Dh10,000.

Those with a basic salary exceeding Dh16,000 will need to pay Dh10 per month or Dh120 annually. The compensation for this category must not exceed Dh20,000 monthly. The value of the insurance policy is subject to five per cent VAT.


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