“According to the new system, employers in private sector companies along with employers of domestic workers in the UAE are required to pay for the health insurance coverage for their registered workers upon issuance or renewal of their residency permits,” state news agency WAM reported.

“In the case of domestic workers, employers have to foot the bill of the scheme. The Ministry of Human Resources and Emiratesation (MoHRE) will be responsible for carrying out essential awareness campaigns and programs regarding this concern.”

This marks the second mandatory insurance scheme introduced for employees in the UAE, following last year’s requirement for workers to subscribe to a program safeguarding them from job loss.

Tariq Qaqish, CEO of Salt Fund Placement, said: “The positive move is not just about providing healthcare security; it’s a strategic move for workforce stability. This shift promises to fuel long-term economic growth by ensuring workers are well-cared for.

“This policy isn’t just good for workers; it’s beneficial for businesses too. Offering health insurance stabilizes the workforce, reducing turnover. Businesses will benefit from a more reliable workforce, lower unexpected costs, and smoother operations. Moreover, this move signals a broader commitment to improving quality of life and worker satisfaction across the UAE.”