I. Introduction of the Mandatory Health Insurance Scheme
In alignment with the UAE Cabinet’s decision, the Ministry of Human Resources and Emiratisation (MoHRE), in collaboration with key governmental and private sector entities, is implementing a mandatory health insurance scheme. Effective January 1, 2025, the policy ensures comprehensive insurance coverage for private sector employees and domestic workers in the Northern Emirates (Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah). This expansion builds on the existing frameworks in Abu Dhabi and Dubai, advancing toward universal health coverage for all workers in the UAE.
II. Coverage Details and Employer Responsibilities
The basic health insurance package, offered through the DubaiCare Network, covers essential medical services, providing an affordable solution for employers and employees alike. Employers in the Northern Emirates must comply with the mandate to secure health insurance for their workforce as a prerequisite for issuing or renewing residency permits. Workers with existing permits valid beyond January 1, 2025, will transition to the new scheme upon permit renewal.
The insurance package costs AED 320 annually and includes:
- Comprehensive inpatient and outpatient care.
- 20% co-payment for inpatient services, capped annually at AED 1,000.
- 25% co-payment for outpatient services, with maximums of AED 100 per visit and AED 1,500 annually for medications.
- Coverage for chronic illnesses without a waiting period.
Dependents of insured workers can access the same benefits at equivalent costs, further supporting worker welfare. The plan’s extensive network includes seven hospitals, 46 clinics, and 45 pharmacies, ensuring wide accessibility.
III. Strategic Implications for Companies
For businesses, this initiative presents both compliance obligations and operational benefits. The introduction of a low-cost insurance option reduces the financial risks associated with uninsured workers requiring medical care. By formalizing healthcare coverage, companies can enhance employee satisfaction, productivity, and retention. Moreover, early disease detection and prevention programs embedded in the scheme contribute to minimizing workforce disruption caused by health emergencies.
Employers are encouraged to begin familiarizing themselves with the insurance options available through the DubaiCare Network and other accredited providers. The digital platforms developed for purchasing and managing policies streamline the integration of this mandate into existing human resources practices.
IV. The TME Legal Takeway
The UAE’s decision to mandate health insurance for private sector employees and domestic workers across all emirates signifies a critical step toward universal healthcare access. For companies operating in or planning to expand into the UAE, this development offers an opportunity to align with national goals while enhancing worker welfare and operational efficiency. Employers should proactively adapt their policies and leverage the resources provided by MoHRE and other authorities to ensure compliance and capitalize on the benefits of this transformative initiative.
