Is group health insurance mandatory in UAE?

If you run a business in the UAE and you are still treating employee health insurance as optional, or as something to sort out "when the team grows," this thread is for you.

The short answer: yes, it is mandatory, across all seven emirates

Since 1 January 2025, every private-sector employer in the UAE must provide health insurance to its employees and domestic workers as a condition for issuing or renewing residence permits.

This is not a new concept in the UAE, but the nationwide scope is. Abu Dhabi and Dubai had enforced mandatory employer-funded health insurance for years. The 2025 Cabinet decision extended this obligation to Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah, making the requirement nationwide for the first time.

What the law actually requires

Employers are required to obtain a health insurance policy as a condition for issuing or renewing residency permits. From January 1, 2025, employers can purchase the policy through the DubaiCare Network or any other accredited insurance provider.

The minimum coverage level is not uniform across all emirates, which is a detail a lot of businesses overlook:

In Dubai, employers must provide health insurance for all employees and their sponsored dependents under DHA Law No. 11 of 2013. The minimum coverage is the Essential Benefits Plan (EBP), which costs approximately AED 500 to 700 per year for the employer. In Abu Dhabi, health insurance has been mandatory since 2007, with UAE nationals covered by the Thiqa programme.

In Abu Dhabi, companies must give health coverage to their workers and their families, including one spouse and three kids under 18. This family coverage obligation does not apply by default in Dubai or the Northern Emirates, where the employee is typically responsible for their dependents.

The basic health plan costs AED 320 per year and covers people aged one to 64. The plan has a 20% co-pay for hospital stays, capped at AED 500 per visit or AED 1,000 per year. For doctor visits outside hospital, you pay 25% up to AED 100 per visit. Medicines carry a 30% co-pay, capped at AED 1,500 per year.

This is the floor. Many businesses mistake it for the ceiling.

What non-compliance actually costs

This is where businesses tend to underestimate the risk. Non-compliance does not just mean a fine. It blocks visa processing, disrupts labour card renewals, and can escalate quickly.

Fines range from AED 500 to AED 150,000, depending on how serious and long-lasting the violation is. For each employee without insurance, employers pay AED 500 per month.

Those who fail to subscribe to the scheme face AED 300 in monthly penalties. Repeat violations within a single year result in doubled fines, which can reach up to AED 500,000.

In Dubai, the Dubai Health Authority can impose monthly fines and withhold visa processing. In Abu Dhabi, the Department of Health enforces penalties and can block labour card renewals.