ILOE: What Your Company Has to Tell Employees

A new hire has signed the offer letter and asks HR a direct question: "Do I buy the unemployment insurance myself, or does the company do it?" The answer given on day one affects whether that person subscribes on time, or finds a fine taken from their salary account later.

MOHRE answered the question in a news item dated 4 October 2023: "while the option has been provided for employers to register their employees in the system, it is ultimately the employee's responsibility to enrol, not the employer's, who incurs no additional costs." The fines in Cabinet Resolution No. (97) of 2022 also target the worker's failure to subscribe or pay. The legal texts and the MOHRE, ILOE and dubai.ae pages we reviewed on 20 September 2026 place no legal duty on the employer to inform staff about ILOE. Telling each new hire the rule, the premium, the channels and the deadlines is good practice, and the checklist below is framed that way.

Below: what the law and MOHRE say, what they leave unsaid, and that onboarding checklist. For the wider set of company transactions with MOHRE and the immigration authorities, see the map of PRO transactions and the authorities behind them.

The two legal texts behind the ILOE scheme

The scheme rests on Federal Decree by Law No. (13) of 2022 Concerning Insurance Against Unemployment, effective 29 September 2022, and Cabinet Resolution No. (97) of 2022, which sets its implementing rules. Both were marked "Active" on the UAE Legislation portal on 20 September 2026. We did not find an amending instrument for either on their legislation and related-legislation pages reviewed that day.

The ILOE Insurance Pool's flyer states "MANDATORY SUBSCRIPTION FROM 01.01.2023".

Who has to subscribe, in the law's words

Article 3(1) of the Decree by Law sets its reach: "The provisions of this Decree by Law shall apply to all workers of the private and federal government sectors" "in the State".

Article 2 of the Cabinet Resolution turns that into a duty on the individual: "All workers/employees of the Federal Government and Private Sectors shall subscribe to the Unemployment Insurance Scheme through purchasing an insurance policy".

Free zone companies. We did not find an explicit statement on whether free zone employees are covered on the Decree by Law, the Cabinet Resolution, iloe.ae, dubai.ae or the MOHRE pages reviewed on 20 September 2026. Ask MOHRE or the ILOE Insurance Pool how the scheme applies to your staff.

Who is outside the scheme: one list, several wordings

The Decree by Law, the Cabinet Resolution and the ILOE home page each list five exempt categories. The wording differs, above all on retirees.

MOHRE's news items add further wordings: "citizens who are eligible for retirement, and retirees who receive pension" (15 November 2023) and "employees with temporary work permits" (13 December 2023). We did not find a definition of "temporary contract" on the legal texts or the ILOE and MOHRE pages reviewed on 20 September 2026. A new hire who believes they are exempt should confirm it with the ILOE Insurance Pool or MOHRE.

What the company's role is, and what it is not

Two dated MOHRE news items describe the employer's part.

• 4 October 2023: employers have "the option" to register their employees, but "it is ultimately the employee's responsibility to enrol, not the employer's, who incurs no additional costs."
• 5 April 2023: MOHRE called "on employers to encourage their employees to subscribe".

On Decree by Law 13/2022, Cabinet Resolution 97/2022, MOHRE's four 2023 news items cited here, the ILOE FAQ and the dubai.ae ILOE page, reviewed on 20 September 2026, we did not find:

1. a statement that an employer must inform employees about ILOE at onboarding;
2. a fine or liability on an employer for an employee who does not subscribe;
3. a statement that an employer may pay premiums on an employee's behalf.

On the same pages and the ILOE home page, we also did not find any 2025 or 2026 change making enrolment automatic or linking it to permit renewal. Ask MOHRE if you hear otherwise.

The scheme still touches three company processes:

• Payroll. Cabinet Resolution 97/2022 lists deduction from the wage account in the Wages Protection System as one way to collect fines. See the employer guide to WPS.
• Work permits. MOHRE's 15 November 2023 item links unpaid fines to new work permits (quoted below). See the explainer on work permits and labour cards.
• The contract. The premium category follows the basic salary, and Article 1 of the Cabinet Resolution defines "Subscription Salary: The basic monthly wage of the worker or the monthly basic salary of the employee." See the guide to employment contracts and offer letters with MOHRE.

Premiums, policy terms and payment options

The ILOE home page, read in a browser on 20 September 2026, shows two plans:

• "CATEGORY A / Basic Salary 16,000 AED or below / 5 AED+ VAT/MONTH"
• "CATEGORY B / Basic Salary Above 16,000 AED / 10 AED+VAT/ Month"

It adds: "Policy period is available for 1 year or 2 years" and "Full VAT amount added to the 1st installment/payment". Cabinet Resolution 97/2022, Article 7, frames the amounts as ceilings: "up to (AED 5) (five dirhams) per month" for the first category and "up to (AED 10) (ten dirhams) per month" for the second.

Payment frequency. Article 6 of the Resolution states: "The insured may select the mechanism and the periodicity deemed appropriate for the payment of the insurance premiums." The ILOE flyer lists "Monthly, Quarterly, Semi-Annually, Annually and in full".

A difference at exactly AED 16,000. The Resolution ("or less") and iloe.ae ("or below") place AED 16,000 in the first category. The dubai.ae ILOE page uses "less than 16,000 AED" and "more than 16,000 AED", which does not place that figure. An employee on exactly AED 16,000 should confirm the category with the ILOE Insurance Pool.

Commission-based pay. The ILOE FAQ states: "The insured whose salary is on a commission basis, may choose the contribution category if the basic salary" "in the employment contract is not specified."

Worked example: three new hires

The cost lines, kept separate

These are not totals and exclude any provider's service fee; ask any provider to show its fee separately.

Fees checked on 20 September 2026.

Where employees subscribe

The ILOE home page, read in a browser on 20 September 2026, splits its "Subscription Channels" into two groups:

• "Direct Channels / Free of charge-without any additional cost": the ILOE Portal and the ILOE Mobile App.
• "Other Channels / Subject to Additional Service charge upon Subscription": "Exchange Centers", "Business Centers", "Tawjeeh & Tasheel", "SMS and Telecommunication Bills", "Kiosk" and "Bank App and ATM Machines".

The page shows status labels such as "LIVE" and "Coming Soon" beside some channels, so check them before pointing staff to one. Its contact number is "600 599 555".

Timing for new joiners. MOHRE's 13 December 2023 item stated: "The legal deadline for subscribing in the system ended in October 2023, 10 months after the system's implementation on 1 January." It also stated: "The Ministry called on private-sector employees who received work permits after 1 October 2023 to register in the Unemployment Insurance Scheme within four months,". That is a 2023 news statement. Ask MOHRE whether the same period applies to a hire joining today, and write the answer on the onboarding record.

Fines, and how they reach the salary account

Article 8 of Cabinet Resolution 97/2022 sets two fines "to be collected by the Ministry". The first is "(AED 400) four hundred dirhams in case of the worker's/employee's failure to subscribe". The second is "(AED 200) two hundred dirhams in the event of the insured's failure to pay the prescribed insurance premiums for more than (3) three months".

The same article lists how the fine is collected:

• "By way of deduction from the insured's account designated for receiving his wage as shown the Wages Protection System"
• "By way of deduction from end of service gratuity or any other alternative schemes"

MOHRE's 13 December 2023 item states: "The fine amount will then be deducted from the employee's salary or end-of-service benefits." We did not find what an employer does when such a deduction is made on Cabinet Resolution 97/2022 or the MOHRE news items reviewed on 20 September 2026. Ask MOHRE if one appears in payroll.

Other measures. MOHRE's 15 November 2023 item states: "Administrative measures will be taken against those who fail to pay fines, including not granting them new work permits until fines are paid, as well as deducting the fine amount from their salaries or end-of-service gratuities." We found the work permit measure in MOHRE's news items, not in the text of Cabinet Resolution 97/2022 as read. The same November item says: "Digital channels also offer the option to submit requests to allow for fines to be paid in installment, aiming to reduce burden on customers."

When payments stop. The ILOE FAQ states that "the insurance policy will be cancelled, and the insured will be subjected to pay a fine as per the applicable law", and "the employee must re-subscribe through a new insurance policy." The Resolution refers to failure to pay "for (3) three months from the due date"; the ILOE policy terms refer to "more than 90 days". An employee who has missed payments should ask the ILOE Insurance Pool which applies.

When a claim can be made, and what it pays

Article 9 of Cabinet Resolution 97/2022 lists the claim conditions:

1. "term of the contribution of the insured is not less than (12) consecutive months"
2. "insured has paid all the insurance premiums in accordance with the periodicity"
3. "insured has provided evidence to that he is unemployed for any reason other than his resignation"
4. "insured has not been dismissed from work for disciplinary reasons under the provisions"
5. "no pending complaint for absence from work has been filed against the insured"
6. "insured is residing in the State legally"

Article 12 adds: "The insured shall submit the claim to the service provider within (30) thirty days from the termination date." The Decree by Law, Article 5, adds: "The compensation payment shall be suspended if the worker/employee joins another employer during the compensation entitlement period."

What the scheme pays. The two official bases differ:

• Decree by Law, Article 6: "The compensation shall be on a monthly basis at the rate of (60%) of the subscription salary and capped at AED 20,000" "per month for a period of (3) three months". The Resolution defines subscription salary as the basic monthly wage.
• ILOE policy terms: "60% of Basic Salary/Wage (calculated based on the average Basic Salary/Wage of the last 6months prior to Unemployment)".

The Decree by Law gives one cap of AED 20,000. Resolution Article 10 gives "(AED 10,000) ten thousand dirhams for the first category and (AED 20,000) twenty thousand" for the second, as does iloe.ae. Article 10 adds: "maximum period for benefiting from the compensation within the term of service shall not exceed (12) twelve months". Confirm any calculation with the ILOE Insurance Pool.

When employment ends

Exit is the second moment when information helps. The ILOE FAQ states: "The insured must submit the claim within 30 days from the date of termination through the following channels:" "A- The ILOE portal [www.iloe.ae] B- The ILOE mobile APP C- The ILOE call center at 600599555." It adds "D- Any other specified channels by the MOHRE in coordination with the Insurance Pool".

We did not find a list of the evidence of unemployment accepted under Article 9 on the Resolution text or the ILOE FAQ reviewed on 20 September 2026; the departing employee should ask the ILOE Insurance Pool. The employer's side of exit is covered in the guide to employee visa cancellation and employer obligations.

An onboarding checklist for HR

Nothing we found makes this a legal duty. It records that a new hire has heard the published rules once, in writing. It fits into the steps in the employer's step-by-step employment visa process.

Practical asset: the ILOE onboarding communication checklist and responsibility table. Good practice for HR, not a legal requirement. Fill in the brackets for each new hire and keep the sheet on the employee file. Part 1: what to tell a new employee, when, and how to record it 1. At offer or day one. Quote MOHRE's 4 October 2023 line: "it is ultimately the employee's responsibility to enrol, not the employer's". Record: date told [____], employee initials [____]. 2. With the contract. Point to the basic salary and the two iloe.ae plans. Flag exactly AED 16,000 or commission-only pay for the employee to confirm with the ILOE Insurance Pool. Record: basic salary [AED ____]. 3. Channels. Name the free direct channels (ILOE Portal, ILOE Mobile App); other channels carry a service charge. Record: shown [yes / no]. 4. Timing. Share MOHRE's 2023 "within four months" statement and MOHRE's answer on whether it still applies. Record: date confirmed [____]. 5. Fines. State AED 400 for not subscribing, AED 200 for not paying, and deduction from the WPS wage account. Record: [yes / no]. 6. Exempt categories. If the employee says they are exempt, ask them to confirm with the ILOE Insurance Pool or MOHRE. Record the category named [____]. 7. Proof, if offered. If the employee chooses to share the policy certificate, note its end date for a reminder. Record: end date [____]. 8. At exit. Remind the employee of the 30-day claim window and its channels. Record: date told [____]. Part 2: who is responsible for what, on the pages reviewed | Step | What the law and MOHRE assign to the employee | What the employer may do | What neither page says | |---|---|---|---| | Subscribing | Resolution Art. 2: workers "shall subscribe"; MOHRE 2023: the employee's responsibility | MOHRE 2023: "the option" to "register their employees"; April 2023: "encourage" | That the employer must subscribe or brief staff | | Paying premiums | Resolution Art. 6: "The insured may select the mechanism and the periodicity" | Not stated | That the employer may pay on the employee's behalf | | Fines | Resolution Art. 8: fines for the worker's failure | Not stated | That the employer is fined for staff who do not subscribe | | Fine collection | Deduction from the WPS wage account or end of service gratuity | Not stated | What the employer does when a deduction is made | | Claims | Resolution Art. 12: the insured submits within 30 days | Not stated | What evidence of unemployment is accepted | | Free zone staff | Not stated | Not stated | Whether they are covered or excluded |

Who decides, what you prepare, what a provider can do

What the authority decides. Under Article 8 of Cabinet Resolution 97/2022, fines are "to be collected by the Ministry". Under Article 12, the insured submits the claim to the scheme's service provider. Under Article 13, that service provider pays a claim "compatible with the established standards", "not later than two weeks" after receiving it. The premium category follows the subscription salary under Article 7. The relevant authority and the scheme decide how these rules apply to each case. No PRO or business services provider decides a category, a fine or a claim.

What the company and the employee prepare. The employee subscribes, pays and keeps the policy details. The company can keep the contract's basic salary clear, keep the onboarding record above, and point the employee to the official channels.

What a provider can do. Where its licensed activity covers it, a provider can prepare company documents and submit company transactions through the channels an authority names. For questions to ask any provider, see the guide to choosing a PRO services company.

This article describes published requirements and is not legal advice.

Last verified: 20 September 2026. Information verified against official sources on 20 September 2026.

If your company is reviewing how it handles MOHRE transactions for new and departing staff, contact RINJAZ to confirm availability, scope and quotation. RINJAZ is a privately licensed UAE service provider. It is not a government entity and does not act for any authority.

A provider's role, within whatever its licensed activity covers, is to prepare documents, submit them through the correct channel and track progress. Under Cabinet Resolution 97/2022, MOHRE collects fines and the scheme's service provider receives and pays claims; the relevant authority and the scheme decide each case, and no provider can promise the outcome.