DUBAI

Approved by His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, Law No. 11 of 2013 concerning medical coverage in Dubai came into force on January 1, 2014. Under this law, all Emiratis and expatriates are required to have health insurance. The UAE authorities have made it mandatory for employers to provide health insurance to each of their employees. This insurance must be equal to or greater than the minimum benefits stipulated by the Dubai Health Authority (DHA). This law does not apply only to companies located on the mainland; it also applies to companies established in one of Dubai's 20+ free zones. EBP is a standard plan implemented by the government to ensure that all employees receive a minimum level of health coverage to protect them in the event of a life accident. This initiative, led by the DHA under the name ISAHD (Insurance System for Advancing Healthcare in Dubai), aims to provide sustainable healthcare to all citizens, residents, and visitors to Dubai. In Dubai, every employer is now legally required to provide medical coverage to all their employees. This medical coverage cannot be deducted from the employee's salary. The basic medical coverage plan costs between AED 500 and AED 700, with a maximum insurance policy of AED 150,000 per person per year. It is also specified that all dependents (spouse and children) and domestic workers (cooks, drivers, maids…) of the employee must also be covered by health insurance. This basic health insurance is called the Essential Benefits Plan (EBP). Note that the employer is not required to provide health coverage for their employees' dependents, although they are encouraged to do so. The law was introduced in several phases, and the first came into force in January 2014.

Phase 1

Companies with 1,000 or more employees had a deadline of October 31, 2014 to provide medical coverage to their employees.

Phase 2

Companies with 100 to 999 employees had a deadline of July 31, 2015.

Phase 3

Companies with 100 employees or fewer, every resident, domestic worker, and dependent of these employees initially had a deadline of June 30, 2016, but this date was subsequently extended twice, first until December 31, 2016, and then again until March 31, 2017.

Sponsors and employers, provide medical coverage or face penalties!

It is simple: if sponsors and employers do not provide health coverage for their dependents and employees, they will be penalized with a fine. However, it is the employee's responsibility to purchase medical coverage for their spouse, children, and domestic workers, and therefore to pay the premiums directly to the insurer. The cost of health insurance for a dependent generally ranges from AED 600 to AED 6,000. The fine system is as follows: AED 500 for each month of non-compliance, as well as being prohibited from hiring new employees and renewing existing visas. Fines must be paid when residence visas are renewed or canceled. Repeated violations are subject to a maximum fine of AED 500,000. Regarding Emiratis, their medical insurance is covered by the government. All nationals working in the private sector may choose between their employer's health insurance and joining the national scheme.

ABU DHABI

In Abu Dhabi, the healthcare sector regulator is the Health Authority Abu Dhabi (HAAD). In the capital, the employer is required to provide medical coverage to all employees and their dependents. Under this scheme, dependents include the spouse and up to 3 children under the age of 18, and the employer is required to pay only 50%; the remaining 50% must be paid by the employee. For other dependents (parents and other children), the employee is legally responsible for covering the cost of health insurance. The minimum level of health insurance coverage for expatriates is defined in Abu Dhabi's basic plan, provided by the National Health Insurance Company (Daman).

Sharjah, Fujairah, Ras al Khaimah, Ajman, Umm Al Quwain

In these emirates specifically, employers are not legally required to provide health coverage for their employees and dependents. Only in Sharjah do employees and their dependents working for the government receive medical coverage. If you have any questions regarding your health insurance and/or that of your employees and dependents, please do not hesitate to contact us. We will be happy to help.