Sets the mechanics of the ILOE scheme: premiums up to AED 5 a month for salaries of AED 16,000 or less and AED 10 above that; exclusions for investors, domestic helpers, temporary staff, minors and retirees; a 30-day claim window; loss of cover after three unpaid months; fines of AED 400 for non-subscription and AED 200 for late payment.
Cabinet Resolution No. 97 of 2022 sets the mechanics of the unemployment insurance scheme created by Federal Decree-Law No. 13 of 2022. It was issued on 14 October 2022 and, under Article 18, took effect the day after publication in the Official Gazette. It remains in force.
Article 2 repeats the scope: federal government and private-sector workers must subscribe, while investors who own and work in their establishment, domestic workers, temporary-contract workers, under-18s and pensioners who take new jobs are excluded. Articles 3 to 5 govern the service providers, which must be Central Bank-licensed insurers with minimum credit ratings and a service agreement with the Ministry; Article 14 routes provider disputes through the Central Bank.
Article 7 fixes the two categories. Workers with a subscription salary of AED 16,000 or less pay up to AED 5 a month; those above AED 16,000 pay up to AED 10 a month. Policies run for at least 12 months (Article 6). Article 10 sets compensation at 60% of subscription salary for up to three months per claim, capped at AED 10,000 a month for the first category and AED 20,000 for the second, with a lifetime limit of 12 months.
Article 9 lists the eligibility conditions: 12 consecutive months of contributions, premiums paid on time, unemployment not caused by resignation or disciplinary dismissal, a claim filed within 30 days, no pending absconding complaint, no fraud or fictitious employer, no unlawful labour disturbance, and legal residence in the UAE. Article 12 requires the claim to be filed with the provider within 30 days of the termination date, and Article 13 obliges the provider to pay within two weeks of a compliant claim.
Article 8 sets the sanctions. A worker who fails to subscribe, or who misses premiums for three months, loses eligibility and must buy a new policy; the fine is AED 400 for non-subscription and AED 200 for late payment beyond three months, which the Ministry may collect from the wage account or end-of-service gratuity. Article 15 allows a provider to recover compensation obtained with false information and imposes a AED 20,000 administrative fine on an employer who colludes to obtain benefits. Article 17 gave existing workers four months from commencement to subscribe.
Federal government and private-sector workers who must subscribe, the Central Bank-licensed insurers that act as service providers, and the Ministry of Human Resources and Emiratisation and Federal Authority for Government Human Resources that administer the scheme. Excluded: owner-investors, domestic workers, temporary workers, under-18s and working pensioners.
| Article 2 | Federal government and private-sector workers must subscribe; investors who own and work in their establishment, domestic workers, temporary-contract workers, under-18s and pensioners in new jobs are excluded. |
| Article 4 | A service provider must be a Central Bank-licensed insurer meeting minimum credit ratings (such as S&P BBB or Moody's Baa), be solvent, have acceptable governance and adequate digital systems. |
| Article 7 | First category, subscription salary of AED 16,000 or less: premium up to AED 5 a month; second category, above AED 16,000: up to AED 10 a month. The Cabinet may amend these. |
| Article 8 | Non-subscription or three months of unpaid premiums ends eligibility until a new policy is bought; fines of AED 400 for non-subscription and AED 200 for late payment, collectable from wages or gratuity. |
| Article 9 | Eligibility needs 12 consecutive months of contributions paid on time, no resignation or disciplinary dismissal, a claim within 30 days, no absconding complaint, no fraud and lawful residence. |
| Article 10 | Compensation is 60% of subscription salary for up to three months per claim, capped at AED 10,000 (first category) or AED 20,000 (second category) a month, and 12 months in total. |
| Article 12 | The insured must submit the claim to the service provider within 30 days of the termination date using the Minister's prescribed process and documents. |
| Article 13 | If eligible, the provider pays within two weeks of receiving a compliant claim to the account the insured specifies, in addition to any other policy the insured holds. |
| Article 15 | Providers may recover compensation obtained through false salary, employment or termination information; an employer colluding to obtain benefits faces a AED 20,000 fine per case; UAE courts have exclusive jurisdiction. |
| Article 17 | Persons covered by the Decree-Law had to subscribe within four months of the Resolution's entry into force, extendable by the Minister. |
Article 8: AED 400 for failing to subscribe and AED 200 for paying premiums more than three months late, with loss of eligibility until a new policy is bought; the Ministry may deduct the fines from the wage account or end-of-service gratuity, allow instalments or waive them. Article 15: AED 20,000 per case on an employer who colludes to obtain benefits, plus recovery of compensation paid on false information.
Investors and partners holding their own company's visa are exempt, a point we confirm for founder-clients so they do not pay for cover they cannot claim. Employees are not exempt, and in our experience the AED 400 fine surfaces when a worker tries to renew or transfer a permit, so we check subscription status during every permit renewal we handle. We tell clients that the policy must be bought within the permit's first weeks and kept current; a three-month gap resets the 12-month qualifying period. For higher-paid staff we point out the AED 20,000 monthly cap, which is well below 60% of many executive salaries, so the scheme is a floor rather than income protection.
Unemployment Insurance Law
Creates the mandatory Involuntary Loss of Employment (ILOE) scheme for private-sector and federal government workers. Those who lose their job for non-disciplinary reason…
UAE Labour Law
The principal private-sector employment law: fixed-term contracts, work permits, probation, working hours, leave, wages, termination, end-of-service gratuity, non-compete…
Labour Law Executive Regulations
Implements the Labour Law: defines the twelve work-permit types (including freelance, part-time, temporary and juvenile permits), the contract models (full-time, part-tim…
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