UAE’s ILOE Scheme: Benefits, Eligibility, and Avoiding Rejection 2025
You wake up and get ready for work, all set for the day, but then BAM! You lose your job. Talk about a bad surprise! With bills piling up, the pressure to find a new job gets real fast.
Luckily, the UAE has an Involuntary Loss of Employment (ILOE) scheme to help. It’s a safety net that catches you if you lose your job unexpectedly.
The UAE’s ILOE scheme started in January 2023. If you qualify and lose your job suddenly, it can give you financial support for up to three months. This is how you have a little breathing room to find a new job without stressing too much about the bills.
But what if they reject your ILOE claim?
Figuring out who qualifies can be tricky, but this guide is here to help. We will break down why claims sometimes get rejected and how to fight it if that happens to you. So, take a deep breath and explore this ILOE scheme together!
Table of Contents
What is the UAE’s ILOE Scheme and How Does it Work?
The ILOE program in the UAE helps you if you lose your job unexpectedly. It’s like a safety net that catches you for a little while. Everyone working for the government or a company gets signed up automatically.
A small amount is taken out of your paycheck to pay for it. If you’ve been paying into the program for a year, you can get some money (up to 60% of your usual pay) for up to 3 months to help you while you look for a new job.
Why Might Your Claim Get Rejected? Learning from Syed Ahmed’s Case
Reported by Khaleej Times
Syed lost his job in Dubai just a few months into the new position. It was a tough time for him. Moreover, things got worse as his application for financial help under the ILOE program was rejected.
The ILOE program is supposed to help people like Syed. It gives money to employees who lose their jobs for reasons beyond their control, as long as they’ve been paying into the program for a year and haven’t quit. But even one mistake can stop someone from getting this help.
Syed’s story shows why it’s important to understand the ILOE rules. If you think you might need to use ILOE, make sure you know if you qualify and that everything is done correctly to avoid problems.
Reasons Why Your ILOE Claim Might Be Rejected
Even if you’ve been consistently paying your contributions, your ILOE benefit application could still be denied for several common reasons:
Timing is Everything:
The ILOE program started giving benefits on January 2nd, 2024. If you lost your job before this date, your claim won’t be covered.
Coverage Considerations:
The ILOE scheme helps private and public sector employees, but there are exceptions. If you weren’t working in these sectors or haven’t paid your ILOE premiums regularly for the last 3 months, your claim could be denied.
Reason for termination matters:
The ILOE program aims to assist individuals who lose their jobs due to reasons beyond their control. If you quit voluntarily, were fired for misconduct, or your fixed-term contract ended without company layoffs, you probably won’t qualify for benefits.
Missing Documentation
Having all the right documents is crucial when you apply for benefits. Be sure to gather your employment contract, termination letter, and any emails or messages from your employer about your job loss. If you’re missing any of these, it could delay or stop your claim from going through.
Rectifying ILOE Claim Errors
The Ministry of Human Resources and Emiratization (Mohre) understands mistakes can happen. If your employer mistakenly recorded a reason for your termination that could disqualify you from ILOE benefits, you can fix it:
Submit Your Termination Letter:
Just submit a copy of your termination letter clearly showing that your employer initiated the termination. Attach this document to your compensation request on the ILOE online portal. This should correct the error and ensure your claim is processed.
For Employers:
Before you cancel a worker’s visa, double-check with ILOE to see what they require for that specific employee. This way, there won’t be any issues when the worker tries to get their money. Also, let Mohre know beforehand if the worker plans to claim ILOE benefits.
For Workers and Employers:
Both workers and employers should learn about the ILOE program. You can find information on the Insurance Pool website or by calling 600 599 555.
ILOE Eligibility Criteria
The UAE’s unemployment insurance scheme is divided into two categories based on your salary level:
Category 1: This covers employees with a basic salary of AED 16,000 or below. The insurance premium is AED 5 per month, and the maximum monthly compensation is AED 10,000.
| CATEGORY 1 |
| Basic Salary 16,000 AED or below |
| 5 AED+VAT/Month |
| Up to 10,000 AED/Month |
| Up to 3 Months / Claim |
Category 2: This includes employees with a basic salary above AED 16,000. The premium is AED 10 per month, and the compensation is capped at AED 20,000 per month.
| CATEGORY 2 |
| Basic Salary 16,000 AED |
| 10 AED+VAT/Month |
| Up to 20,000 AED/Month |
| Up to 3 Months / Claim |
Eligibility Criteria
To get ILOE insurance benefits, employees must be part of the scheme for at least 12 months in a row. Once you submit a claim, it will be processed within two weeks. However, you won’t receive compensation if you cancel your residency, leave the country, or start a new job.
You need to register in the ILOE Scheme otherwise, you must pay an ILOE fine of Dh200 to Dh400.
Duration and Conditions
The compensation is available for up to 3 months from when you lose your job. However, if you are fired for disciplinary reasons or you resign, you won’t be eligible for benefits.
The End Line
Getting your claim rejected can be disappointing, but it’s not the end. There are things you can do to get things back on track. By collecting all the important papers you need and following these tips, you’ll have a better shot at winning your appeal. If things get tricky, don’t be afraid to ask for help. You can do this!
With the right info, you can deal with the ILOE process with confidence and get the money you deserve.
Also Read:
How to Check and Pay ILOE Insurance Fine 2025
7 Essential RTA Fines Every Dubai Driver Should Know
