Working in the UAE: Top three insurance programmes that protect you
Mandatory health insurance and other programmes to secure workers in the UAE
Dubai: Over the years, the UAE has introduced different insurance programmes that help provide financial security to workers in the country’s private sector.
These initiatives developed by the Ministry of Human Resources and Emiratisation (MOHRE) are designed to ensure financial security, promote workplace safety, and provide access to vital healthcare services for private sector workers. To understand how these policies impact both workers and employers and how it improves the lives of UAE’s workforce, here is all you need to know.
1. UAE’s mandatory health insurance – 100 per cent workforce coverage to begin in 2025
While mandatory health insurance is already implemented in Abu Dhabi and Dubai, starting January 1, 2025, the scheme will extend coverage to private sector workers in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah, ensuring that 100 per cent of the UAE's private sector workforce is covered by insurance.
Who is eligible?
The new health insurance policy is mandatory for all private sector companies when obtaining or renewing residency permits for their employees. However, it does not currently apply to existing work permits issued before January 1, 2024. These workers will be covered when their residency permits are up for renewal next year.
Who pays?
Employers are responsible for providing and paying for their employees health insurance. They have the flexibility to choose the new insurance package offered through the DubaiCare Network or any other product from accredited insurance companies.
For a detailed breakdown of coverage of the new health insurance policy, click here.
2. Workers Protection Programme (WPP)
Since its introduction by MOHRE in 2018, the Workers’ Protection Programme (WPP) safeguards workers in the event of company bankruptcy, ensuring they receive their wages. Under this programme, employers have two options:
• Bank guarantee: Employers can secure a bank guarantee issued by a UAE-based bank. The minimum amount is Dh3,000 per worker.
• Insurance policy: Employers can opt for an insurance plan offering coverage of up to Dh20,000 per worker.
The insurance policy is designed to protect workers from financial risks, such as an employer’s bankruptcy or failure to fulfil their legal obligations. If the insurance provider compensates a worker under this policy, the employer is required to reimburse the insurer.
3. Unemployment Insurance: Financial security for job loss
In 2023, the UAE introduced the Involuntary Loss of Employment (ILOE) Scheme, a mandatory insurance policy aimed at safeguarding employees in both federal and private sectors. Unlike other schemes, the ILOE is funded directly by employees.
How does the ILOE scheme work?
The ILOE scheme offers financial support to employees who lose their jobs due to employer termination, provided the dismissal is not for disciplinary reasons and the employee did not resign voluntarily. Eligible employees can receive cash compensation for up to three months.
Key features of the ILOE scheme:
• Eligibility: Employees must have been subscribed to the scheme for at least 12 consecutive months to claim compensation.
• Payment structure: Premiums can be paid monthly, quarterly, semi-annually, or annually, allowing flexibility in subscription.
• Claim process: Employees must file a claim within 30 days of their employment termination. Licensed service providers, approved by the UAE Central Bank, are required to process claims and disburse payments within two weeks of submission.