top of page

Mandatory Unemployment Insurance: Sign up before June 2023 to avoid 400DHS Fine.

The Deadline to subscribe to the Involuntary Loss of Employment (ILOE) scheme is set for – June 30, 2023. As per the Ministerial Resolution No. 604 of 2022 regarding the ILOE, eligible employees have a grace period until June 30, 2023 to subscribe. If the worker was employed at a date later than January 1, 2023, they will have a grace period of four months to subscribe, starting from the day they landed in the UAE or the day the ‘Visa Change Status’ was completed.

What is the ‘Unemployment Insurance scheme’?

The Unemployment Insurance scheme is a form of insurance/social security that provides Emiratis and residents working in the federal and private sectors, financial support if they lose their jobs, as a result of termination by their employers.

The financial support will be given in exchange for a monthly insurance premium paid by the worker during their employment.

Who needs to register?

The scheme applies to all workers in the private and federal sectors except:

  • investors, business owners who own and manage their business themselves

  • domestic workers

  • employees on a temporary basis

  • juveniles under the age of 18

  • retirees who receive a pension and have joined a new employer.

Cost of subscription

1. Workers with a basic salary of AED 16,000 or less will need to pay a monthly insurance premium of AED 5, i.e. AED 60 annually. The compensation for this category must not exceed a monthly amount of AED 10,000.

2. Those with a basic salary exceeding AED 16,000 will need to pay AED 10 per month, i.e. AED 120 annually. The compensation for this category must not exceed AED 20,000 monthly.

The worker may choose to pay the premium on a monthly, quarterly, half-yearly or on annual basis.

In coordination with the insurance company, the insured worker may subscribe to additional benefits in addition to the above basic package.

The value of the insurance policy is subject to VAT.

How to sign up?

Workers may subscribe to the scheme via ILOE Insurance Pool website and its app and any other channel which MoHRE may announce.


bottom of page