UAE: Is job loss insurance mandatory for employees in free zones, semi-government firms?

Over 1.3 million people have subscribed to the Involuntary Loss of Employment (ILoE) scheme so far


Waheed Abbas

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Published: Mon 8 May 2023, 6:00 AM

Last updated: Mon 8 May 2023, 10:55 PM

It is mandatory for employees working in the private sector and the federal government to subscribe to job loss insurance. But now, an official has confirmed it is also mandatory for UAE employees working in free zone companies and semi-government entities to subscribe to the Involuntary Loss of Employment (ILoE) scheme implemented in January 2023.

Employees who fail to subscribe to the job loss insurance scheme by June 30 will face a Dh400 fine. An additional Dh200 penalty will be imposed for failing to pay premiums.

Dana Kansou, manager, strategic partnerships at Dubai Insurance, which is spearheading the campaign on behalf of the ILOE pool in the UAE, said free zone and semi-government employees can register through the ILoE portal and app with a different approach than the existing portal available for employees who have a valid work permit from the Ministry of Human Resources and Emiratisation (MoHRE), or in the federal government entities.

“The subscription portal and app are now live to support employees working in both the semi-government and free zones across UAE. However the subscription journey will be different from the one offered to employees registered in MoHRE or the Federal government,” she said.

Revealing that more than 1.3 million people have subscribed to the scheme so far, Kansou urged employees who have yet to subscribe to the scheme to do so as early as possible to avoid penalties.

Under the ILoE insurance scheme, employees with a basic salary of less than Dh16,000 are required to pay Dh5 per month or Dh60 per annum plus VAT as a premium. They will be compensated with 60 per cent of the average basic salary (for the last 6 months prior to job loss) with a maximum of Dh10,000 per month for up to three consecutive months. Meanwhile, employees with a basic salary of over Dh16,000 are required to pay Dh10 a month, or Dh120 annual premium +VAT under this scheme.

The policy period is available for one or two years.

How free zone, semi-government employees can subscribe:

  • Log in to
  • Click on ‘Subscribe Here’
  • Click on “Non-registered in MOHRE”
  • Add personal details
  • Upload copies of Emirates ID, residence visa
  • Make payment.

To know more, visit or contact 600599555.


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