The UAE Cabinet has announced the enforcement of a nationwide health insurance mandate starting January 1st, 2025.
This new ruling, reported by WAM, sets a uniform standard across the UAE, eliminating the earlier policy where health insurance provision was discretionary in the Northern Emirates. Previously, only employers in Dubai and Abu Dhabi were required to provide health insurance for their staff.
The nationwide mandate aims to ensure all employees, including domestic workers, are comprehensively insured.
Under the new system, employers will be required to pay for health insurance coverage for their workers when issuing or renewing a visa. This three-tiered health insurance system offers varying benefits at different price points, aiming to alleviate the financial burden on domestic workers and employees in the private sector.
The Ministry of Human Resources and Emiratisation will roll out awareness campaigns and programs in the coming months to educate employers about the new rules.
Currently, employers in Abu Dhabi and Dubai are mandated to provide basic health insurance coverage, with broader plans available for higher earners.
Prior to this, the UAE enforced the Involuntary Loss of Employment scheme (ILOE).
His Highness Sheikh Mohammed bin Rashid Al Maktoum pointed out that over 7 million employees across all sectors in the UAE benefit from the ILOE, with 98.8 percent of the country’s workforce covered by the Workers’ Protection Programme.
