As of January 1, 2025, all UAE private-sector employers must fund health insurance for employees as a condition of residence permit issuance/renewal. Dubai and Abu Dhabi rules continue to apply (with different dependent rules), and the Northern Emirates now follow a new federal Basic Health Insurance Scheme administered via MoHRE.
What changed in 2025?
The UAE’s health insurance framework has undergone a major transformation in 2025, bringing long-anticipated uniformity to employer obligations across the country. This section breaks down the national update, how it connects to existing local mandates, and what it means for businesses.
- Nationwide mandate: From 1 Jan 2025, employers in all emirates (Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, Fujairah) must provide basic health insurance for private-sector employees and domestic workers.
- Visa linkage: Insurance is now mandatory at the point of residence permit issuance or renewal nationwide.
- Price signal for the North: MoHRE introduced a Basic Health Insurance package from ~AED 320/year (ex-fees) for the Northern Emirates.
Key takeaway: In 2025, health insurance UAE requirements became uniform at the employee-coverage level, but dependent rules and local enforcement still vary by emirate.
Employer Duties by Emirate (Quick Reference)
Employer responsibilities differ slightly depending on where your employees live and work. This section breaks down what’s required in each emirate, helping you understand exactly what you need to fund, and who counts as a dependent.
Abu Dhabi (Department of Health – DoH)
- Who must be covered?
Employers must provide health insurance for employees and eligible dependents: one spouse + up to three children under 18. - Legal basis: Law No. 23 of 2005 and implementing regulations (DoH/HAAD).
- Fines/controls: DoH maintains a violations & penalties schedule (e.g., fines for failing to present a policy).
Practical note: The Abu Dhabi “Basic” plan is widely used for compliance; co-pays and annual limits apply (e.g., 20% outpatient co-pay).
Dubai (Dubai Health Authority – DHA)
- Who must be covered?
Employers must fund medical insurance Dubai for employees. Dependents (spouse/children/parents) are the sponsor’s responsibility, unless the employer chooses to extend benefits. - Legal basis: Law No. 11 of 2013; ISAHD program and the Essential Benefits Plan (EBP).
- Fines/controls: Non-compliance triggers financial penalties and visa renewal issues.
Practical note: The DHA-compliant EBP is the minimum standard for low-income employees; dental coverage is typically not included.
Northern Emirates (Sharjah, Ajman, Ras Al Khaimah, Fujairah, Umm Al Quwain)
After years of inconsistency, the Northern Emirates are now aligned with national standards. Employers here face new compliance expectations that mirror Dubai and Abu Dhabi’s long-standing models.
- 2025 rollout: Basic Health Insurance Scheme via MoHRE for private-sector employees and domestic workers.
- Price guidance: Package from AED 320/year (ex-VAT/fees).
Minimum Benefits: What Must a Compliant Plan Include?
Every approved UAE health insurance plan must meet minimum government standards. This section clarifies the core protections your policy should offer — and what may not be covered, such as dental or optical care.
Minimum benefits typically include:
- Emergency care and inpatient hospitalisation
- Outpatient consultations and diagnostics
- Prescribed medicines
- Maternity services (within defined limits/co-pays)
- Network access per authority rules
Dental insurance UAE: what’s included? In basic plans, dental care is commonly excluded. Employers wanting to attract talent often add dental/vision riders or upgrade to comprehensive plans.
Who Pays for Dependents?
The question of dependent coverage is often misunderstood. Each emirate has different expectations on whether employers or employees (as sponsors) bear responsibility for family members.
- Abu Dhabi: Employer must cover spouse + up to three children <18.
- Dubai: Employer covers employees only; dependents are the sponsor’s responsibility.
- Northern Emirates: Employer-funded employee coverage only; dependent coverage rules mirror federal sponsorship policies.
Compliance Checkpoints for SMEs
Maintaining compliance requires precision — and consistency. These checkpoints ensure your HR, payroll, and immigration processes stay aligned with the latest regulations.
10-step compliance checklist:
- Identify the emirate of employment and its dependent rules.
- Select a compliant plan via DoH/DHA/MoHRE.
- Enrol employees before visa issuance or renewal.
- Map salary bands to EBP/basic eligibility.
- Codify your dependent policy in contracts.
- Track expiries and renew early.
- Audit payroll deductions for accuracy.
- Keep policy proof for visa applications.
- Establish a grievance path for employees.
- Review dental/vision strategy for retention.
Penalties & Risks if You Don’t Comply
The costs of non-compliance go far beyond fines. Visa holds, reputational damage, and employee relations risks can compound quickly if coverage lapses.
- Visa blocking: No insurance = no residence permit.
- Financial penalties:
- Abu Dhabi: Up to AED 5,000 per violation.
- Dubai: Fines under Law No. 11 (2013) for non-compliance.
- Reputational harm: Coverage lapses affect employee wellbeing and trust.
- Appeal rights: Abu Dhabi and MoHRE offer formal appeal channels.
How to Build a Compliant, Scalable Health Insurance Policy
Designing a benefits structure that meets regulatory requirements, and supports business growth, takes planning. Here’s a practical framework to guide your approach.
- Segment your workforce by emirate and salary band.
- Select licensed insurers offering compliant tiers.
- Define your dependent coverage policy by location.
- Integrate insurance issuance into onboarding workflows.
- Automate renewals 45–60 days in advance.
- Add dental/vision riders strategically.
- Set up an escalation path for authority interactions.
- Audit payroll and benefits quarterly for consistency.
Pros & Cons: Basic vs Comprehensive Plans
Choosing between a compliant minimum plan and a premium option depends on your workforce strategy. Here’s how each stacks up.
| Plan Type | Pros | Cons |
| Basic / EBP | Lowest cost; meets compliance; fast issuance. | Limited networks; higher co-pays; no dental. |
| Comprehensive | Richer benefits; includes dental/vision; talent retention. | Higher premiums; administrative complexity. |
The Strategic View: What the Mandate Means for SMEs
Beyond compliance, the new UAE health insurance regime influences budgeting, talent strategy, and HR operations. Here’s why SMEs must take a structured approach.
- Cost predictability: Insurance is now a fixed employment cost.
- Employee experience: Enhanced coverage boosts retention.
- Operational discipline: Integrate health insurance into payroll and onboarding.
Managing regional compliance across multiple emirates can be challenging. Auxilium simplifies this through our deep GCC expertise and full-service employment model.
Auxilium operates as your Employer of Record, managing payroll, visas, health insurance UAE compliance, and end-of-service obligations across the UAE, Saudi Arabia, Kuwait, Oman, Bahrain, and Qatar.
Book a free consultation with Auxilium’s UAE EOR team to explore how we can handle your medical insurance Dubai, payroll, and visa compliance, while you focus on growth.
