United Arab Emirates
[Updated 2/19/25] When considering employee benefits in the UAE, it is essential to know that over 90% of the working population are expatriates. The most popular employer-sponsored benefits are medical insurance (due to its mandatory nature) and pension schemes for companies operating in the Dubai International Financial Centre (DIFC).
Country Insight
Health Insurance
Employee benefits in the UAE revolve primarily around healthcare. Government regulations require all expatriates in Dubai (since 2017), Abu Dhabi (since 2006), and the Northern Emirates (in 2025) to have a compliant health insurance policy under the DHA (Dubai Health Authority) or HAAD (Health Authority of Abu Dhabi), respectively. The law is in full effect, and no residency visa can be granted without a compliant policy in place. For existing residents, failure to comply with the law will attract fines, and any gaps in coverage will be identified at the time of visa cancellation or renewal.
As mentioned above, the health insurance scheme was recently extended to private sector workers in the Northern Emirates – Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah starting January 1, 2025. The mandate does not apply to employees with valid work permits issued before January 1, 2024. Coverage only becomes mandatory when their residency permits are due for renewal.
It is important to note that a compliant medical insurance policy does not automatically mean access to top-tier medical facilities or doctors.
Average Premium for Employer-Sponsored Benefits
Employees in Dubai earning 4,000 Dhs and less are eligible for the Essential Benefit Plan (EBP), which offers the minimum benefits and has an updated index rate for 2025 imposed by the Health Authority varying between AED 715 to AED 745(+/-25 AED) per person per annum (PPPA). Such plans are only offered by 20 authorized insurance companies referred to as ‘Participating Insurers’ (PIs).
The average premium for an Enhanced EBP solution varies between AED 900 to AED 2,500 pppa. Outside of EBP and Enhanced EBP, the premium costs quickly escalate, and a middle-market plan with regional coverage will average AED 6,500 (PPPA), and a higher-end international solution (excluding the US) will be in the range of 15,000 Dhs (PPPA).
Advice To Employers
In the UAE, expatriates are excluded from the national pension system and instead receive a lump sum end-of-service payment. As retirement benefits are a prime consideration for employees, especially those moving from country to country, it is advisable for employers entering the UAE market to be well-informed about this topic.
On the medical front, Employers are recommended to act quickly and abide by the law, as non-compliance will incur financial penalties (AED 500) per employee per month and block visa processing.
Surprising Fact
Employers are often surprised about the minimal liabilities surrounding an employee´s death or disability when in service.
If you need support with your employee benefits in the UAE, please contact Asinta, and we will put you in touch with the local experts at Nexus.