UAE Benefits & Worker Protections: Gratuity, ILOE & Health Insurance
UAE worker protections centre on end-of-service gratuity, the ILOE unemployment insurance scheme, and mandatory health insurance.
Employees in the UAE accrue an end-of-service gratuity based on basic salary and years of service — 21 days' wages per year for the first five years and 30 days per year after, capped at two years' wages. The Involuntary Loss of Employment (ILOE) insurance scheme requires most employees to subscribe and pays a limited monthly benefit if they lose their job. Health insurance is mandatory across the UAE: Abu Dhabi and Dubai run their own schemes, and since 1 January 2025 the federal Basic Health Insurance Scheme covers private-sector employees and domestic workers in the five northern emirates, with employers required to provide it. Our guides explain gratuity calculations, ILOE enrolment and claims, health insurance requirements, and what to do when a payment is delayed.
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If you work for a private company in the UAE, you earn a gratuity when your job ends. This is also called an end-of-service benefit. You must complete at least one year of continuous service. The amount is based on your last basic salary. You get 21 days of basic wage for each of the first five years. You get 30 days for each year after that. Part years count too, in proportion. Since February 2022, all private-sector contracts are fixed-term. The old limited and unlimited contract rules no longer apply to new service. Under the old unlimited contracts, resigning could reduce your gratuity. That reduction no longer applies.
7 steps · 15 minutes to calculate · Free (employer pays)2026-Latest
In the private sector in the UAE, maternity leave is 60 days. The first 45 days are fully paid. The last 15 days are half-paid. You can apply up to 30 days before your expected delivery date. You can get extra unpaid leave if you are ill because of the pregnancy or the childbirth. You can get extra paid leave if your baby is sick or has a disability. Parental leave is 5 paid working days, for both parents. These figures are for the private sector, under Federal Decree-Law 33/2021. The rules for the government sector are different.
7 steps · Maternity: 60 days; parental: 5 working days · Free (paid leave entitlements)2026-Latest
If your employer breaks your contract or the Labour Law, you can file a labour complaint. Examples are unpaid wages, unpaid gratuity, unfair dismissal, and too many working hours. You file with the Ministry of Human Resources and Emiratisation (MOHRE). You can use its website or app. You can also call the Labour Claims and Advisory Centre on 80084. MOHRE first tries to settle the case in a friendly way. If that does not work, MOHRE can decide claims up to AED 50,000 itself. It sends bigger disputes to the Labour Court. Do not wait. MOHRE guidance says to file within 30 days of the breach.
6 steps · About 14 working days for MOHRE handling · No fee (MOHRE complaint service)2026-Latest
The Involuntary Loss of Employment (ILOE) scheme is unemployment insurance. It is mandatory for federal government and private-sector employees. You must pay into it for at least 12 months in a row before you can claim. If you then lose your job through no fault of your own, you can claim. You get 60% of your average basic salary from the last six months before you lost your job. You get this for up to 3 months per claim. The most you can get is AED 10,000 or AED 20,000 per month. The cap depends on your salary band. You must file your claim within 30 days of losing your job.
6 steps · Claim processed within 2 weeks of submission · Subscription AED 5 or AED 10 per month by salary band2026-Latest
FAQ
Frequently Asked Questions
Common questions and essential rules for benefits & health in United Arab Emirates.
How is UAE gratuity (end-of-service benefit) calculated?
Gratuity is calculated on basic salary. You get 21 days' wages for each of the first five years of service, and 30 days' wages for each additional year. The total is capped at two years' wages. Use our gratuity calculator guide for a worked example.
Who must subscribe to ILOE unemployment insurance?
Most employees in the UAE's private and federal government sectors must subscribe to ILOE. Premiums depend on salary band. Fines apply for late subscription, so enrol as soon as you start work.
Is health insurance mandatory in the UAE?
Yes. Health insurance is mandatory across the UAE. Abu Dhabi and Dubai run their own schemes. In the five northern emirates (Sharjah, Ajman, Fujairah, Ras Al Khaimah, Umm Al Quwain), the federal Basic Health Insurance Scheme applies since 1 January 2025. Employers must cover private-sector employees and domestic workers (AED 320/year basic package).
What can I do if my employer does not pay my gratuity?
First raise it in writing with your employer. If it is unresolved, file a labour complaint with MOHRE, the ministry can mediate and, if needed, refer the case to the labour court.
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