Did you know that employee insurance is mandatory in the UAE? Whether you’re an employer or an employee, understanding your insurance rights is essential for your well-being, financial security, and legal compliance.
Mandatory employee benefits in the UAE
Under UAE Labour Law (Federal Decree-Law No. 33 of 2021) and health regulations in Dubai & Abu Dhabi, employers must provide several key benefits to employees:
Health insurance
Health insurance is a legal requirement for all employees:
In Dubai, Employers must provide coverage under the Dubai Health Insurance Law No. 11 of 2013, regulated by the Dubai Health Authority (DHA).
In Abu Dhabi: Regulated by the Department of Health – Abu Dhabi (DOH), employers are required to cover employees and their dependents (spouse & up to three children under 18).
Annual leave
Employees are entitled to 30 days of paid annual leave after completing one year of continuous service.
For service between six months and one year, employees accrue two days of leave per month.
Sick leave
After three months of continuous service, employees can avail up to 90 days of sick leave annually:
First 15 days: Full pay
Next 30 days: Half pay
Subsequent 45 days: Unpaid
Maternity and paternity leave
Maternity leave: Female employees are entitled to 60 days of maternity leave (45 days at full pay and 15 days at half pay)
Paternity leave: Male employees are granted five days of paternity leave, which can be taken within six months of the child's birth.
End-of-service gratuity
Employees who complete at least 1 year of continuous service are entitled to end-of-service gratuity, calculated as:
21 days’ basic salary per year for the first 5 years.
30 days’ basic salary per year beyond 5 years.
Note: The gratuity is calculated based on the last drawn basic salary and excludes allowances.
Additional employee benefits
Many employers offer supplementary benefits to attract and retain talent:
Housing allowances
Transportation allowances
Education allowances for children
Flexible working hours
Performance bonuses & incentives
Life & disability insurance
Savings & pension schemes (optional but growing trend under the Employee Savings Plan)
These perks are not mandatory by law but have become common, especially in large corporations and multinationals.
Why comprehensive employee insurance matters
A. Legal compliance
Failing to provide mandatory health insurance can result in fines of AED 500 per employee per month (DHA Rule in Dubai).
B. Financial security
Adequate insurance protects employees and their families against unforeseen medical costs, workplace injuries, and loss of income.
C. Employee well-being & loyalty
Offering more than the minimum required benefits helps employers build a strong employer brand and reduce staff turnover.
D. Business reputation
Providing a comprehensive benefits package demonstrates the company’s commitment to employee welfare and enhances its standing in the market.
Final thought
Employee insurance is an essential part of ensuring financial protection, health security, and employee satisfaction.
Whether you’re an employer or an employee, understanding these entitlements helps you make better decisions and fosters a safer, healthier workplace.