Mandatory health insurance for UAE employees: How it’s different from existing requirements

The government of the United Arab Emirates has announced a required insurance programme for all employees in the private sector and domestic workers, making healthcare costs more affordable for citizens. The plan will go into effect on January 1, 2025.

The new programme is a relief for those who lack employer-sponsored health insurance or who are unable to pay for one, according to No Brokerage Dubai. Employers may see an increase in premiums and expenditures, but having a strong health benefits package will help them draw and keep talent.

Only employees in Abu Dhabi and Dubai are presently required to obtain health insurance, as these two emirates have passed locally relevant legislation. Employers are required by the new system to provide countrywide healthcare cost protection for their employees.

In Dubai, firms are required to provide their employees with a package. It is the employees’ responsibility to register dependents—family members who are sponsored by them—in a scheme.

Employers and sponsors are required by law to provide coverage for their workers’ families in Abu Dhabi, which includes one spouse and three children under the age of 18.

No. Employers and sponsors will be obligated by law to cover the expenditures of their employees and domestic helpers. It’s not immediately obvious if the regulation would force businesses to foot the bill for family-oriented programmes for their staff.

In a statement, the UAE Cabinet stated that in order to provide or renew residency permits for their employees, companies must have a healthcare plan. This implies that, as is the situation in Abu Dhabi and Dubai, offering a plan to a domestic worker or employee may be related to the approval or renewal of their visa. If an applicant does not have adequate health coverage, their visa will not be granted or renewed in any of the emirates.

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