14/05/2026
π UAE employers - this one is for your onboarding checklist.
The ILOE (Involuntary Loss of Employment) insurance scheme has been mandatory for all UAE private sector employees since January 2023, including free zone staff under DMCC, JAFZA, and others.
The employer pays nothing. But employees who miss the subscription deadline face a AED 400 fine, and unresolved fines can block work permit renewals.
Here's what the scheme covers in a nutshell:
π Payout: 60% of basic salary for up to 3 months after involuntary termination
π Coverage follows the employee's Emirates ID β not the employer
β οΈ Non-subscription fine: AED 400
At Altus Citadel, we now recommend all our clients include ILOE guidance in new hire onboarding. It takes minutes to set up and protects your employees from day one.
Read our full guide belowπ
Questions about UAE employment compliance, visa processing, or PRO services?
Get in touch: [email protected] | +971 50 961 6354
UAE ILOE insurance is mandatory for all private sector employees. This guide covers who must subscribe, costs, penalties for non-compliance, and what employers should include in onboarding.