UAE Unemployment Insurance Premium Calculator Estimate Your ILOE Cost
Use the UAE Unemployment Insurance Premium Calculator to estimate your monthly and annual Involuntary Loss of Employment (ILOE) insurance cost. Select your basic salary category, review the estimated VAT, and see how your premium compares with the official basic subscription rates.
Free Estimate · AED Currency · Salary-Based Categories · VAT Shown Separately
UAE Unemployment Insurance Premium Calculator
Calculate an indicative ILOE premium for the basic insurance package. The published categories use a basic salary threshold of AED 16,000 per month. The calculator displays the base premium, estimated VAT, annual equivalent and a simple policy-period estimate.
Use your contractual basic salary, not your full package including housing, transport or other allowances. If your employment contract does not specify a basic salary and you are paid by commission, check the category-selection rules with ILOE.
Estimated Insurance Cost
Monthly estimate for Category A, including the entered VAT rate.
UAE Unemployment Insurance Premium Rates
The ILOE basic package has two subscription categories based on monthly basic salary. These are the published base premiums before VAT and any optional or third-party service charges.
| Category | Monthly Basic Salary | Base Monthly Premium | Base Annual Premium | Maximum Monthly Compensation |
|---|---|---|---|---|
| Category A | AED 16,000 Or Less | AED 5 | AED 60 | Up To AED 10,000 |
| Category B | More Than AED 16,000 | AED 10 | AED 120 | Up To AED 20,000 |
How The Salary Threshold Works
Category A applies when the employee's monthly basic salary is AED 16,000 or less. A basic salary of exactly AED 16,000 therefore falls in Category A under the published threshold. Category B applies when the basic salary exceeds AED 16,000.
The distinction is based on basic salary rather than the entire employment package. Housing, transport, commissions and other benefits may be handled differently under the employment contract. Do not add allowances to basic salary merely to estimate the insurance category.
What The Annual Figures Mean
The annual base figures are simple equivalents of twelve monthly premiums: AED 5 multiplied by 12 equals AED 60, while AED 10 multiplied by 12 equals AED 120. These figures exclude VAT and any separate service charge. The amount payable at subscription can differ from a simple monthly equivalent because the official portal may collect VAT for the selected policy period with the first payment.
What Is UAE Unemployment Insurance?
The UAE's Involuntary Loss of Employment scheme, commonly called ILOE, is designed to provide eligible insured employees with temporary financial compensation after qualifying involuntary job loss. It is separate from salary payments, gratuity calculations and an employer's other obligations under employment law.
The scheme's basic premium is relatively small compared with the potential compensation, but subscription alone does not guarantee a payout. The employee must satisfy the applicable policy and legal conditions, including the required consecutive subscription period and the rules concerning the reason for job loss.
The UAE Unemployment Insurance Premium Calculator focuses on the cost of the basic insurance package. It is intended for budgeting and understanding the published category rates, not for confirming an individual's eligibility or predicting the approval of a claim.
For the governing information, consult the UAE Government's unemployment insurance guidance and the current policy terms on the ILOE portal.
What To Check Before You Pay
Basic salary: Confirm the amount in your employment contract.
Category: Check whether Category A or B applies to you.
VAT: Review the VAT amount displayed at checkout.
Policy period: Confirm whether you are buying a one-year or two-year policy.
Payment channel: Check whether the channel adds a service fee.
Policy status: Save your certificate and payment confirmation.
How To Use The UAE Unemployment Insurance Premium Calculator
Follow these steps to produce a useful estimate and avoid confusing the insurance premium with possible unemployment compensation.
Enter Your Basic Salary
Use the monthly basic salary written in your contract. Do not automatically include housing or transport allowances.
Confirm Your Category
Automatic selection uses the AED 16,000 threshold. You can choose a category manually to compare costs, but your official policy category must be correct.
Review The VAT Rate
The default is 5% for an illustrative estimate. Confirm the actual VAT shown by ILOE before making a payment.
Select A Policy Period
Choose one or two years to see the estimated basic premium and VAT over the selected period.
Choose A Budget View
Display the monthly, quarterly, six-month or annual equivalent to help plan the expense.
Confirm The Official Amount
Use the ILOE portal or an authorised channel to confirm your payment amount and policy details.
UAE Unemployment Insurance Premium Calculator Examples
These examples use the published base premiums and a 5% VAT assumption. They exclude third-party service charges and any optional benefits.
| Example | Monthly Basic Salary | Category | Base Per Year | Estimated VAT | Estimated Total Per Year |
|---|---|---|---|---|---|
| Employee A | AED 8,000 | A | AED 60.00 | AED 3.00 | AED 63.00 |
| Employee B | AED 16,000 | A | AED 60.00 | AED 3.00 | AED 63.00 |
| Employee C | AED 16,500 | B | AED 120.00 | AED 6.00 | AED 126.00 |
| Employee D | AED 30,000 | B | AED 120.00 | AED 6.00 | AED 126.00 |
Example: Basic Salary Of AED 12,000
An employee with a basic salary of AED 12,000 belongs to Category A under the published salary threshold. The base premium is AED 5 per month. With an illustrative 5% VAT amount of AED 0.25 per month, the monthly equivalent becomes AED 5.25. Over twelve months, the base premium is AED 60 and the estimated VAT is AED 3, giving an estimated annual total of AED 63.
Example: Basic Salary Of AED 20,000
An employee with a basic salary of AED 20,000 falls into Category B. The base premium is AED 10 per month. At an illustrative 5% VAT rate, the monthly equivalent is AED 10.50, while the annual base premium is AED 120 and the estimated annual VAT is AED 6. The estimated annual total is AED 126 before any additional service fees.
These examples explain the published premium structure only. They do not calculate income tax, gratuity, salary deductions or a claim payment. If the official checkout amount differs, use the official amount and check whether the difference relates to the policy duration, VAT collection timing or a service fee.
How Much Could ILOE Pay If You Lose Your Job?
The premium is the amount paid for insurance; compensation is a potential benefit that may be payable after a qualifying involuntary loss of employment. They are not the same calculation. The published scheme describes compensation based on 60% of the average basic salary over the six months before unemployment, subject to the applicable limits and conditions.
For Category A, the maximum monthly compensation is AED 10,000. For Category B, the maximum monthly compensation is AED 20,000. Compensation can be paid for up to three consecutive months for a qualifying claim, subject to the policy and legal rules. These caps are maximums, not a promise that every insured person will receive that amount.
For an illustration only, 60% of an average basic salary of AED 10,000 is AED 6,000 per month before applying the policy conditions. A higher average salary does not remove the Category A monthly cap. Eligibility, qualifying reasons for termination, subscription history and other requirements must be checked independently.
Read the current official ILOE FAQ and calculator information before relying on a benefit estimate. This premium calculator does not decide claims.
Important Claim Conditions
- The scheme generally requires at least 12 consecutive months of subscription before compensation eligibility.
- Job loss must meet the scheme's qualifying conditions.
- Resignation and dismissal for disciplinary reasons do not qualify under the general scheme conditions.
- Claim submission deadlines and documentation requirements apply.
- Taking a new job or leaving the country may affect eligibility under the applicable rules.
- Compensation remains subject to the policy wording and official claim assessment.
Always verify the current terms directly with ILOE or the relevant UAE authority. Do not treat an illustrative calculation as approval of a future claim.
What Can Change Your Final ILOE Payment?
The published monthly premium is a useful starting point, but the final payment can depend on details that a simple calculator cannot verify.
VAT
The official ILOE website lists the basic premium plus VAT. The VAT amount may be collected with the first installment rather than spread across every payment.
Payment Channel
Direct subscription through the ILOE portal or app is described as free of additional channel fees. Other channels may charge separate service fees.
Policy Duration
The available policy period affects the amount collected. Confirm the selected duration and renewal date in the official policy details.
Optional Benefits
The calculator models the basic package only. Additional benefits or other options can change the final amount if offered and selected.
Category Selection
The basic salary threshold determines the standard category. If your contract or pay structure is unusual, ask the insurer to confirm the correct selection.
Policy Confirmation
Keep the policy certificate, receipt and payment record. These documents help you confirm your active status and address payment questions.
Common Mistakes When Estimating UAE Unemployment Insurance Premiums
A few checks can prevent a small premium estimate from becoming a misunderstanding about coverage or the amount due.
Use Basic Salary, Not Total Package
The category threshold is based on basic salary. Entering a total package that includes allowances may lead to an incorrect category estimate. Review the wording of your contract and confirm any unclear salary components with the insurer.
Do Not Forget VAT
The published base premiums are not the full VAT-inclusive price. Compare the estimate with the amount displayed at checkout and confirm the VAT rate applicable to your purchase.
Do Not Assume Every Channel Is Free
The ILOE portal describes its direct channels as having no additional cost, while other channels may apply service charges. Ask for a breakdown when using an exchange centre, bank channel, kiosk or other intermediary.
Do Not Confuse Premium With Benefits
Paying the insurance premium does not mean the employee can claim compensation at any time. Subscription duration, the reason for job loss and other policy conditions matter.
Do Not Treat An Estimate As A Receipt
The result on this page is a budgeting estimate, not proof that a policy is active or that a payment has been made. Only an official confirmation or policy record can verify your subscription status.
Review Renewal Dates
Keep track of your policy period and renewal instructions. Avoid assuming that a previous payment automatically confirms uninterrupted cover for a later period.
Related UAE Salary And Budget Calculators
Explore related tools to organise your salary information, employment costs and wider household budget. Each calculator serves a different purpose and should not replace official insurance guidance.
Explore the relationship between basic salary and a wider employment package.
Explore Calculator ↗ UAE Salary Package Breakdown CalculatorReview salary components and allowances when planning employment income.
Explore Calculator ↗ UAE Hourly Wage CalculatorConvert salary assumptions into an hourly pay estimate for budgeting.
Explore Calculator ↗ UAE Overtime Pay CalculatorEstimate overtime pay separately from your ILOE premium and insurance coverage.
Explore Calculator ↗ UAE Savings Goal CalculatorPlan regular savings contributions alongside recurring insurance expenses.
Explore Calculator ↗ Dubai Cost Of Living CalculatorPut your regular household spending into a wider monthly budget.
Explore Calculator ↗UAE Unemployment Insurance Premium Calculator FAQs
Answers to common questions about the premium categories, VAT, payment estimates and potential benefits under the ILOE scheme.
How much is UAE unemployment insurance per month?
The published basic premium is AED 5 per month for Category A, where monthly basic salary is AED 16,000 or less, and AED 10 per month for Category B, where basic salary exceeds AED 16,000. VAT and any applicable service fees are additional.
What is the salary limit for Category A?
Category A applies to a monthly basic salary of AED 16,000 or less. A basic salary above AED 16,000 falls into Category B under the published standard categories.
Does the calculator include VAT?
Yes. It adds the VAT rate entered into the calculator to the base premium. The default 5% is an estimate; confirm the actual amount shown by ILOE before payment.
How much does Category A cost per year?
The base annual premium is AED 60 before VAT, calculated as AED 5 multiplied by 12. At an illustrative 5% VAT rate, the estimated total is AED 63 before any additional service fees.
How much does Category B cost per year?
The base annual premium is AED 120 before VAT, calculated as AED 10 multiplied by 12. At an illustrative 5% VAT rate, the estimated total is AED 126 before any additional service fees.
Is the premium calculated on basic salary or total salary?
The standard category threshold refers to basic salary. Check your employment contract and ask ILOE if your salary structure or commission arrangement makes the correct category unclear.
Can I pay the full premium annually?
ILOE provides policy and payment options through its official channels. The exact amount and collection timing depend on the policy period and the payment method shown when you subscribe or renew.
Are there extra fees when I subscribe?
The official ILOE portal describes direct subscription channels as free of additional channel charges, while some other channels may apply service fees. Confirm the breakdown before paying.
How much unemployment compensation can I receive?
The scheme describes compensation based on 60% of average basic salary over the six months before unemployment, subject to category caps of AED 10,000 or AED 20,000 per month and the applicable eligibility rules.
Does paying the premium guarantee a claim?
No. A claim must meet the policy and legal conditions. These include subscription history and the qualifying circumstances of job loss. The insurer assesses the claim under the applicable terms.
Who should I contact to verify my policy?
Use the official ILOE website or app to review your policy information and payment statement. MOHRE's official website also provides guidance on the UAE unemployment insurance scheme.
Is this UAE Unemployment Insurance Premium Calculator an official service?
No. This is an independent estimate based on the published basic premium categories. It does not issue policies, accept payments, confirm eligibility or replace an official quote from ILOE.
Check Your ILOE Premium Before You Pay
Use the UAE Unemployment Insurance Premium Calculator for a quick budgeting estimate, then verify your category, policy period, VAT and final payment amount through the official ILOE channel.
Visit Official ILOE Website ↗