UAE Announced Mandatory Health Insurance for Private Sector Employees from 2025

In a significant move aimed at ensuring the welfare of private sector employees and domestic workers, the United Arab Emirates (UAE) has announced a mandatory health insurance scheme set to be enforced from January 1, 2025. Under this new regulation, employers will be obligated to provide health coverage for their registered workers while issuing or renewing residency permits.

This decision marks a pivotal step towards enhancing healthcare accessibility for the substantial private sector workforce in the UAE. Currently, Abu Dhabi and Dubai already have laws mandating health insurance for employees, with Abu Dhabi extending coverage to employees’ families as well. However, this new UAE-wide scheme will ensure uniform coverage across the nation.

Acknowledging the importance of such initiatives, the UAE Cabinet approved the scheme for private sector employees and domestic workers who lack existing health insurance coverage. Notably, employers will bear the responsibility of covering the health insurance costs for their domestic workers.

This development follows the implementation of another crucial insurance scheme last year, which safeguards workers from job loss. Over 7.2 million employees from both private and federal government sectors are already enrolled in this scheme, emphasizing the government’s commitment to protecting workers’ rights.

Highlighting the significance of these measures, Sheikh Mohammed bin Rashid, Vice-President and Prime Minister of the UAE, underscored the government’s dedication to ensuring the stability and competitiveness of the labor market. As part of broader reforms, the Ministry of Human Resources and Emiratisation (MoHRE) will launch awareness campaigns and programs to facilitate the smooth implementation of the health insurance scheme.

In conclusion, these initiatives reflect the UAE government’s proactive approach towards safeguarding the well-being and rights of its workforce. By instituting mandatory health insurance, the UAE aims to bolster healthcare accessibility and foster a conducive environment for economic growth.