With effect from January 1, 2025, the UAE government has mandated health insurance for all employees in the private sector as well as domestic workers. The purpose of this program is to help locals better manage their healthcare costs. For those who cannot afford insurance and do not have employer-sponsored health coverage, this program provides assistance. While firms may incur higher costs and premiums, providing comprehensive health benefits might improve their capacity to draw in and keep talented employees.
Due to regional legislation passed by Abu Dhabi and Dubai, employees in these emirates are currently the only ones required to get health insurance. Employers must, however, provide healthcare coverage to their staff members throughout the United Arab Emirates under the new national system.
Employers are required by law in Dubai to offer their staff health insurance coverage. On the other hand, employees are in charge of signing up their dependents—family members—for the program on their behalf.
Employers and sponsors in Abu Dhabi are obligated to offer insurance to their staff members and their families, which includes one spouse and up to three minor children.
Employers and sponsors will in fact be required by law to pay for the expenses associated with their employees and domestic workers. It is unclear from the text, nevertheless, if businesses will have to pay for insurance plans for the relatives of their workers.
The UAE Cabinet said that in order to provide or renew residency permits for their staff, companies will need to secure a healthcare plan for their workers. This suggests that, similar to what happens in Abu Dhabi and Dubai, offering a health plan to an employee or domestic worker may be contingent to the issuance or renewal of their visa. Visas are only denied or renewed in both emirates if proof of current health insurance is provided.
The precise consequences for not adhering to the healthcare program that covers the entire UAE have not yet been specified. On the other hand, under the current programs in Abu Dhabi and Dubai, the penalty for each person who fails to offer health insurance coverage usually vary from Dh300 to Dh500 each month.
The UAE has not yet made clear what exactly is covered under the recipients' required insurance plan. However, according to data from insurance aggregator Policybazaar, even basic packages, like the essential benefits plans provided by employers in Dubai for employees making less than Dh4,000 per month, typically cover emergencies, surgeries, medical diagnosis, medication, both outpatient and inpatient treatments, and maternity care.
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