Employee Health Insurance in the UAE

Mandatory Health Insurance in the UAE from 1 January 2025

Health Insurance in the UAE will become mandatory for all Emirates across the UAE effective 1 January 2025. This will apply to both Mainland and Freezone companies.

Currently, Employers in Dubai and Abu Dhabi are required to provide Health Insurance to their employees but as of 1 January 2025, this will also apply to the 5 remaining Emirates – Ajman, Sharjah, Umm Al Quwain, Fujairah and Ras Al Khaimah.

Health Insurance Laws in the UAE

In Dubai and Abu Dhabi, mandatory health insurance policies have already been in place for several years. The decision to implement the healthcare policy earlier in these Emirates was influenced by The Dubai Health Authority (DHA) and The Department of Health in Abu Dhabi. Through these Emirates healthcare policy initiatives, they have been able to reduce overall healthcare costs for UAE residents and UAE/ GCC Nationals.

Health insurance is a legal requirement and requires the company to offer a minimum level of healthcare coverage to its employees. Companies are not able to deduct the premium amounts from the employee or reduce employee salaries to compensate for premiums. Doing so will result in penalties for the employer.

Penalties between AED 500 to AED 150,000 can be imposed on the company/sponsor for failure to provide health insurance coverage.

The minimum health insurance coverage should allow the employee to visit a general practitioner and specialists, and receive emergency treatments, investigative, maternity, and surgical procedures.

Must the company provide health insurance for spouses and children?

Abu Dhabi

In Abu Dhabi, the employer must provide health insurance coverage to the employee as well as their family which includes a spouse and up to 3 children. For more than 3 children, the responsibility for health insurance coverage will fall onto the employee.

Dubai

In Dubai, the company may or may not provide health insurance to the employee’s family as it is not mandatory. However, companies may choose to offer health insurance to employees' families as part of their agreed compensation package and/or for better attraction and retention of staff as part of their overall employment benefits.

We expect that more information about the mandatory health insurance coverage for the other 5 Emirates will be shared in due course. Which will outline the coverage requirements for the employee and their families.

How can we assist?

Sovereign PPG assists clients with their employee visa, immigration, and onboarding procedures. This includes obtaining employment visas, EID, and related HR services for the mandatory employment requirements in the UAE.

Our HR team will be able to advise you on what are the mandatory benefits that must be offered to all UAE employees as well as any additional optional benefits that companies may want to include for their employees to increase their attractiveness in a competitive job market.

If you require assistance with obtaining appropriate Health Insurance plans for your UAE employees or any other related employment benefits requirements, then please reach out to us via the inline form below and we would be delighted to assist.