Global Mobility Unemployment Insurance Scheme in the UAE

UAE: Global Mobility 

Unemployment insurance scheme in the UAE

Global Mobility Unemployment Insurance Scheme in the UAE


The Ministerial Resolution No. 340 of 2023 was issued on 15 June 2023 extending the deadline for the mandatory registration to the Unemployment Insurance/Involuntary Loss of Employment (ILOE) scheme. The ILOE scheme was introduced by the UAE Federal Government through Federal Decree-Law No. 13 of 2022 in the last quarter of 2022.


All employees of the private sector, government, free zones and semi-government entities

UAE's ILOE scheme

1.    Eligibility

  • Loss of job must not be due to resignation, disciplinary action, and fraud or deceit

2.    Subscription Deadlines

  • Employed before 01 Jan 2023: By 30 Jun 2023
  • Employed starting 01 Jan 2023: Within 4 months

“As per the recent resolution1, the deadline is extended to 1 October 2023

3.    Premium payments

Monthly basic salary of:

  • Up to AED 16,000: AED 5 per month
  • More than AED 16,000: AED 10 per month

4.    Obligation to register and support

  • Registration and payment to the ILOE scheme is the employee’s responsibility.
  • Employers must inform and communicate this scheme to their employees.

5.    Penalties

  • Late or non-subscription: AED 400
  • Failure to pay premiums for more than 3 months: AED 200

6.    Cash Benefit

  • Monthly cash benefit of up to 60% of the employee’s average basic salary2 shall be provided for maximum 3 consecutive months. The premium must be paid for at least 12 consecutive months.

1.     Ministerial Resolution No. 340 of 2023

2.     Average basic salary for the 6 months prior to loss of employment.

How can Crowe help?

  • Assist clients and/or their employees in assessing the applicability followed by compliance with the applicable regulations.

Contact Us

Markus Susilo
Markus Susilo
Partner- Payroll and Indirect Tax
Deepika Chandak
Deepika Chandak
Director - Global Mobility & Consulting