How to use the calculator
- Enter the monthly basic salary from the employment contract. It decides the category.
- If the basic salary changed in the last 6 months, enter the average for those months; otherwise leave the field empty.
- Choose a policy period of 1 or 2 years to see the premium with VAT.
How the premium and the benefit are calculated
Category A: basic salary of AED 16,000 or below; Category B: above it
Premium = monthly premium × 12 × years + VAT at 5%
Monthly benefit = the lower of 60% × average basic salary of the last 6 months, and the category cap
Benefit for one claim = monthly benefit × 3
In Category A, 60% of a salary at the threshold is AED 9,600, so the cap of AED 10,000 only matters when the average salary used for the benefit is higher than the salary that set the category. In Category B the cap applies once the average basic salary is above AED 33,333.33.
The scheme's figures
| Rule | What the scheme sets |
|---|---|
| Monthly premium by category | AED 5 / AED 10 a month (16,000 basic salary threshold) |
| Benefit after a job loss | 60% of basic salary; cap AED 10,000 / AED 20,000 a month; 3 months per claim |
| Policy period and VAT | 1 or 2 years; full VAT on the first payment |
| Conditions for a claim | 12 months' subscription; claim within 30 days; not resignation |
| Fine for not subscribing or not paying | AED 400 |
Sources: Insurance against job loss (updated 08 Dec 2025), The Official Portal of the UAE Government (u.ae); Involuntary Loss of Employment (ILOE) Insurance Scheme: plans, ILOE Insurance Pool (official scheme website). Checked .
Who is outside the scheme
5 excluded categories
Excluded from the unemployment insurance scheme are investors who own the establishment they work in, domestic workers, employees on temporary contracts, juveniles under 18, and Emiratis who meet the conditions for retirement or retirees receiving a pension who take a new job.
- Applies to
- Unemployment insurance scheme under Federal Decree-Law No. 13 of 2022
- Source
- Insurance against job loss (updated 08 Dec 2025), The Official Portal of the UAE Government (u.ae)
- Checked
Worked example
Worked example
Basic salary of AED 20,000 and a 2-year policy
The salary is an illustration and is taken as the average of the last 6 months too.
- AED 20,000 is above AED 16,000, so the worker is in Category B.
- Premium: AED 10 × 24 months = AED 240.00, plus VAT of AED 12.00 = AED 252.00.
- Benefit: 60% × 20,000 = AED 12,000.00 a month, below the cap of AED 20,000.
- For one claim of 3 months: AED 12,000.00 × 3 = AED 36,000.00.
Premium AED 252.00 for 2 years; benefit AED 12,000.00 a month for up to 3 months.
Assumptions and what the calculator leaves out
- The category. The calculator takes the category from the basic salary entered. Workers paid on commission without a basic salary in the contract may choose either category.
- The threshold. A basic salary of exactly AED 16,000 is treated as Category A, as on the scheme's own site.
- Service charges. Subscribing through the scheme's portal and app is free; some other channels add a service charge, which the calculator leaves out.
- Limits over a working life. Payments stop if the worker finds a new job, and all claims together are limited to 12 monthly benefits over a working life in the UAE.
Note
The benefit replaces part of the basic salary only. End-of-service pay is separate: see the gratuity calculator and the ILOE unemployment insurance guide.