Employees Health Insurance: Benefits & Coverages

In today’s competitive job market, employee health insurance has evolved from a simple benefit to an essential requirement. Companies across the UAE are recognising the importance of offering health insurance for employees, not just to meet legal requirements but to build a healthier, happier, and more productive workforce. ...read more

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With the UAE government now extending mandatory health insurance coverage to all private sector employees and domestic workers by January 1, 2025, employers must act swiftly to stay compliant and care for their team’s well-being.

Key Benefits for Employees Health Insurance

Offering health insurance shows your employees that you care—and it comes with significant advantages for both sides:

Benefit	Description
Financial Protection	Covers high medical expenses during illness or emergencies
Improved Job Satisfaction	Employees feel valued and secure
Reduced Absenteeism	Timely treatment leads to quicker recovery and fewer workdays lost
Attract & Retain Talent	A strong benefits package makes hiring easier
Tax Benefits for Employers	No need to pay tax

Case Study: Real-World Impact Ali, an employee in a mid-sized UAE company as an example. When he fell seriously ill, his employee health insurance covered hospitalisation, tests, medicines, and follow-up care. This relieved his financial burden and helped him recover stress-free, ultimately returning to work more engaged than ever.

Is Employee Health Insurance Mandatory in UAE?

Yes. As part of the UAE government’s vision for universal healthcare access —

All private sector employees and domestic workers must be covered under a health insurance plan starting January 1, 2025
Insurance is mandatory for visa issuance or renewal
Employers are financially responsible for the insurance—not employees

Basic Health Insurance Package Highlights

Feature	Details
Annual Cost	AED 320 per employee
Coverage Includes	Inpatient, outpatient, chronic conditions, and pre-existing conditions
Network	7 hospitals, 47 clinics, 44 pharmacies
Co-pay (Inpatient)	20% (capped at AED 1,000 annually)
Co-pay (Outpatient)	25% (max AED 100/visit)
Medication Co-pay	30% (capped at AED 1,500 annually)
Telehealth Services	Free of charge (except pharmacy)

Step by Step Guide to Get Health Insurance for Employees

Here’s how to get health insurance for employees in a few easy steps —

1. Understand Legal Compliance

Employers must ensure:

Health insurance is arranged before visa issuance/renewal
Policy complies with federal and emirate-level regulations
Proof of coverage is maintained for inspections or audits

2. Choose the Right Health Insurance Plan

When selecting a plan:

Opt for Group Health Insurance to cover multiple employees under one policy
Compare providers like DubaiCare Network, Star Health, or Oman Insurance
Check for:
- Cashless hospitalisation
- Waiver of waiting periods
- No pre-policy medical tests
- Add-ons like dental, maternity, or dependents cover

3. Communicate Benefits to Employees

Clearly explain:

What’s covered and what’s not
How to file claims
Network hospitals
Contact points for help

Use HR meetings, emails, or internal portals to keep everyone informed.

4. Monitor and Manage Claims

Assign an HR or internal point of contact to:

Help employees file claims
Resolve queries
Coordinate with the insurance provider

5. Review & Renew Annually

Before renewing the group policy:

Evaluate claim history
Collect employee feedback
Adjust coverage or switch providers if needed

Tips to Choose the Best Health Insurance Plan for Your Company

The below table will help you understand how you can choose the best plan according to your needs —

Tip	Why It Matters
Assess Employee Needs	Use surveys and data to understand medical needs
Compare Plan Types	HMO, PPO, POS, or EPO – each has different flexibility and costs
Consider Total Costs	Look at premiums, deductibles, co-pays, and caps
Evaluate Support Services	Choose insurers with good customer support and claim handling
Review Regularly	Employees’ needs and market offerings evolve—stay updated

Additional Benefits of Providing Employee Health Insurance

Stronger Employer Branding – Showcase your care for employee well-being
Boosts Loyalty – Healthier employees are more loyal and committed
Supports Mental Health – Many plans offer mental health and wellness programs
Improves Productivity – Fewer sick days, better focus, and morale

Conclusion: Building a Healthier Workforce

Employee health insurance isn’t just about ticking a legal box—it’s about valuing your team. By offering thoughtful, affordable coverage, companies in the UAE can enhance productivity, reduce turnover, and build a future-ready organisation.

Whether you’re a small business or a large enterprise, now is the time to act. Choose the right health insurance for employees, stay compliant, and prioritise the well-being of your people—it’s a win for everyone.