What Is the ILOE Fine Payment in the UAE? The ILOE fine refers to the penalty imposed on employers and workers in the UAE for non-enrolment or non-payment of the Involuntary Loss of Employment (ILOE) insurance scheme. This insurance became mandatory in 2023 for all employees in both public and private sectors.
By 2025, enforcement has become stricter. Companies that fail to ensure their employees are enrolled in the ILOE scheme can face delays in visa renewals, rejection of MOHRE applications, and direct ILOE fine payments linked to their establishment card.
ILOE Fine Payment in UAE—How Companies Can Avoid It in 2025
Why the ILOE System Exists
The Involuntary Loss of Employment (ILOE) scheme is designed to provide temporary financial support to workers who lose their jobs due to reasons beyond their control (termination, redundancy, etc.).
The system:
Protects workers with monthly compensation
Reduces burden on government
Ensures continuity of income for terminated employees
Encourages legal employment practices
But with this initiative comes mandatory compliance, and failure to enrol staff leads directly to ILOE fine payment obligations.
What Triggers an ILOE Fine Payment?
Here are the most common reasons why companies get flagged for ILOE fines:
1. Employee Not Enrolled
All employees earning below AED 20,000/month must be enrolled within 4 months of joining.
2. Premiums Not Paid
Even if enrolled, failing to pay the monthly premium (as low as AED 5–10/month) leads to automatic fines.
3. Worker Visa Renewal Blocked
MOHRE systems are now integrated with the ILOE portal. If a worker’s insurance is inactive, visa and labour card renewals are blocked — until the ILOE fine payment is cleared.
How Much Is the ILOE Fine Payment?
As of 2025, the ILOE fine is
AED 400 per worker for non-enrollment
Additional AED 200–500 if multiple months of unpaid premiums exist
Delays in visa stamping or application may result in added penalties
For companies with 50+ staff, this adds up fast.
Legal Consequences of Ignoring ILOE Fines
If a business ignores its ILOE fine payment, it may face
Suspension of new work permit issuance
Inability to renew visas or Emirates IDs
MORE account freezes
Legal investigation or blacklisting
ILOE compliance is no longer optional; it is directly tied to business functionality in the UAE.
How Mahad HRC Helps Employers Avoid ILOE Fines
At Mahad HRC, we offer full ILOE compliance support for all our manpower clients in Abu Dhabi and across the UAE.
Here’s what we do:
1. Enrollment Tracking
We ensure every worker you hire is enrolled in the correct ILOE scheme tier within the legal time frame.
2. Premium Payment Reminders
Our HR tech alerts employers about upcoming ILOE premium due dates, avoiding fines and late fees.
3. MOHRE Integration Support
We handle all the system syncing with the MOHRE database to ensure insurance status reflects properly during renewals.
4. Clearance of Existing ILOE Fines
Already have unpaid ILOE fines? No problem. Our PROs will help you clear them and get your company back in legal standing — fast.
Why Partner with Mahad HRC?
We provide:
Licensed manpower supply
Full visa & documentation handling
ILOE compliance monitoring
No hidden fees
Scalable hiring with zero penalty risk
Whether you’re hiring 5 staff or 500, Mahad HRC ensures your business stays 100% compliant
Final Thoughts
The ILOE fine payment is more than just an administrative penalty; it can freeze your hiring, disrupt operations, and impact your business reputation. With Mahad HRC as your manpower and compliance partner, you can focus on business growth while we handle the legal side.
Avoid the fine. Protect your team. Hire the legal way with Mahad HRC