# WPP Insurance UAE - Workers Protection Program Cost, Coverage & Claims (2026)

**Published:** 2025-11-06T11:26:12.655Z
**Updated:** 2026-10-06T09:58:32.480Z
**Author:** Aashima Mongia
**Reviewer:** Atul Kathuria
**Original Url:** https://www.policybazaar.ae/income-protection-insurance/articles/wpp-insurance-uae/

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WPP insurance (Workers Protection Program insurance) is an approved insurance program in the UAE that protects private-sector employees if an employer fails to meet their obligations. The insurance covers unpaid wages for up to 120 days, end-of-service benefits, repatriation, and compensation for work-related injuries up to AED 20,000 per worker. Moreover, employers can purchase the insurance policy for their employees at a lower cost than a bank guarantee. Specifically, instead of paying AED 3,000 for a bank guarantee, businesses pay AED 105.5 to AED 262.5 (inclusive of VAT) for 30 months of insurance for each employee through the WPP insurance pool. Notably, workers do not pay any premiums for this insurance. Instead, they file a labour complaint with MOHRE to claim the benefits if the employer defaults.

## What Is WPP Insurance (Workers Protection Program)?

WPP Insurance (Workers Protection Program Insurance) is a labor protection scheme launched in October 2018 following a UAE Cabinet decision. Designed as a low-cost insurance alternative to the traditional AED 3,000 bank guarantee per worker, it protects registered employees against financial loss if an employer fails to meet its contractual obligations.

For companies, it’s mandatory to get this insurance or have the AED 3,000 guarantee in place.

Administered through a pool of licensed UAE insurers (the Insurance Pool, often accessed via portals such as DINWPP / Dubai Insurance), WPP pools small premiums paid by employers to fund claims when a company defaults.

### Key Highlights

*   **Mandatory Application:** The coverage applies to private sector employers hiring staff under MOHRE labor contracts.
*   **Coverage Limit:** When an employer chooses the insurance option, the policy can provide up to AED 20,000 per worker for covered labour entitlements if the employer is unable to pay.
*   **Employer-Funded:** Premiums are paid entirely by the employer. No deductions can be made from employee salaries.

## Why Was Work Protection Insurance Introduced? WPP vs Bank Guarantee

Before 2018, employers had to deposit a fixed bank guarantee of AED 3,000 with MOHRE for every work permit issued. For a company hiring 100 workers, this meant AED 300,000 in working capital was locked up in a bank account.

The introduction of WPP insurance fundamentally altered this dynamic:

| Feature | Bank Guarantee | WPP Insurance Scheme |
| --- | --- | --- |
| Upfront Cost | AED 3,000 per worker | Low premium (approx. AED 105–262.5 per worker) |
| Capital Impact | Cash locked up in bank deposit | Minimal impact; unleverage balance sheet cash |
| Maximum Coverage | At least the AED 3,000 deposit | Up to AED 20,000 per worker (paid by the insurer) |
| Flexibility & Scale | Rigid, requires bank processing | Digital management via MOHRE / WPP portals |
| Worker Protection | Basic recovery | Enhanced multi-risk coverage (wages, travel, injury) |

## What Does WPP Insurance Payment Cover?

If an employer experiences severe financial distress, insolvency, or illegal default, WPP insurance UAE steps in to compensate eligible claims up to the AED 20,000 policy ceiling per employee.

These can include:

| WPP Coverage | What It Means |
| --- | --- |
| Unpaid wages | Covers unpaid wages for up to 120 days (approximately 4 months) before the worker’s last working day |
| End-of-service benefits | Eligible unpaid severance or contractual exit settlements |
| Repatriation costs | Eligible costs of returning the worker to their home country |
| Work-related injuries/occupational diseases | Eligible unpaid medical expenses connected with work injuries or occupational diseases |
| Repatriation of remains | Costs related to returning the worker’s body to their home country in case of death |
| Certain absconding-related airfare | Airfare in specified cases where an absconding report was filed and the worker was apprehended during the coverage period |
| Other eligible labour entitlements | Other financial entitlements covered under the applicable labor legislation and policy terms |

Important Note: WPP is not health insurance. It does not cover routine medical treatment, doctor visits, or elective hospitalisation. Health insurance remains a separate mandatory requirement under Dubai, Abu Dhabi, and national healthcare regulations.

## How Much Does WPP Insurance Cost in the UAE?

The premium depends on the worker category and the applicable insurance product. The UAE Insurance Pool’s published rates include:

| Worker Category | Premium per Certificate/Transaction | Policy Period |
| --- | --- | --- |
| Skilled labour | AED 144.38 | 30 months |
| Limited-skilled labour | AED 189 | 30 months |
| High-risk establishment not compliant with WPS | AED 262.5 | 30 months |
| Domestic workers | AED 105 | 30 months |

The Insurance Pool currently displays the same categories and premiums. The above-mentioned amounts are VAT-inclusive.

_**Important: Confirm the exact premium applicable to an establishment through the current WPP Insurance Pool process. This is because worker classification and applicable product conditions matter.**_

  

## Who Needs WPP Dubai Insurance?

The work protection insurance scheme is designed for private-sector employees and domestic workers under the relevant MOHRE framework.

For establishments, the current rules provide a choice between the insurance policy and the required bank guarantee.

This means an employer should not assume that buying WPP insurance is the only compliance route. The business should first establish which requirement applies to its workforce and jurisdiction.

## Who Pays for WPP Insurance in Dubai?

The employer pays for WPP insurance. An employee does not purchase a WPP policy for themselves.

The purpose of the scheme is to protect eligible worker entitlements if the employer cannot meet its financial obligations.

This is different from ILOE, where the employee subscribes to [unemployment insurance](https://www.policybazaar.ae/income-protection-insurance/articles/unemployment-insurance-scheme-uae/) and pays the applicable premium.

## WPP vs WPS vs ILOE: What’s the Difference?

These three terms are frequently confused because they all relate to employment and salary protection.

| Details | WPP | WPS | ILOE |
| --- | --- | --- | --- |
| Full form | Workers Protection Program | Wage Protection System | Involuntary Loss of Employment |
| What is it? | Worker-protection insurance | Wage payment monitoring system | Unemployment insurance |
| Main purpose | Protect eligible worker entitlements if an employer defaults | Monitor salary payments | Provide financial support after eligible involuntary job loss |
| Who pays? | Employer | Employer processes salary payments through the system | Employee |
| Covers unpaid salary caused by employer default? | Yes, subject to policy terms and limits | Helps create a record of wage payments | No |
| Covers normal job loss? | No | No | Yes, if eligibility conditions are met |

Click here to Buy Income Protection Insurance!

## How to Buy WPP Insurance from the WPP Insurance Pool?

For employers choosing the insurance route, WPP insurance is available through the WPP Insurance Pool.

_**The general process is:**_

1.  **Access MOHRE:** Log into the official MOHRE Portal or access the dedicated Insurance Pool (DINWPP) gateway.
2.  **Select Establishment:** Choose your registered business entity / trade license.
3.  **Confirm Workforce:** Select the relevant list of employees requiring work permit issuance or renewal.
4.  **Calculate Premium:** The system automatically calculates the WPP policy premium based on worker risk profiles and headcount.
5.  **Complete Online Payment**: Pay using electronic corporate payment channels (credit card / direct banking).
6.  **Download Certificates:** Once paid, download the official WPP Insurance Certificate for your records and MOHRE visa processing.

## How Can Employees Claim WPP Insurance?

Employees can’t directly purchase or submit an insurance claim for WPP on their own directly with an insurer. Claims are activated solely as part of an official labor dispute resolution process through MOHRE.

1.  **Gather Evidence:** Collect your Emirates ID, passport, contract, and bank statements. Your WPS transfer history serves as primary proof showing when salary payments ceased.
2.  **File a Labor Complaint:** Submit an official dispute through the MOHRE Mobile App, mohre.gov.ae, or by calling 800 84.
3.  **MOHRE Mediation**: MOHRE attempts an amicable settlement with the company.
4.  **Court Referral & WPP Trigger:** If the employer fails to respond or pay due to insolvency, MOHRE or the Labor Court formally confirms the default. The Insurance Pool then settles unpaid dues directly to the worker up to the AED 20,000 limit.

Crucial Warning for Employees: Never sign a “No Dues”, “Full and Final Settlement”, or cancellation document until money owed has actually reached your bank account. Signing prematurely can forfeit your right to both a labor claim and a WPP payout.

Click here to Buy Income Protection Insurance!

| Note – [Income protection plan](https://www.policybazaar.ae/income-protection-insurance/) is not a stand-in for unpaid compensation. It compensates only if you lose your job. |
| --- |

## Frequently Asked Questions

### Is WPP insurance mandatory in the UAE?

Employers covered by the relevant MOHRE framework must provide the required worker protection through either an insurance policy or a bank guarantee of at least AED 3,000 per employee, subject to the applicable rules.

### What is the maximum WPP insurance pool coverage?

The maximum coverage is AED 20,000 per worker for eligible covered entitlements.

### How many months of unpaid salary does the Work Protection Program cover?

WPP insurance payment can cover unpaid wages for up to the last 120 days before the worker’s last working day, subject to the applicable policy and claim conditions.

### Who pays for WPP Dubai insurance?

The employer purchases and pays for the WPP insurance policy.

### Does Work Protection Insurance cover health insurance?

No. WPP is separate from health insurance and does not cover ordinary healthcare expenses.

### Is WPP the same as ILOE?

No. WPP protects eligible worker entitlements when an employer fails to meet its obligations. ILOE offers financial support to eligible employees following involuntary unemployment.

### Can an employee buy WPP insurance in Dubai?

No. WPP is an employer-arranged worker-protection policy. Employees do not normally purchase it individually.

### What is the difference between WPP and WPS?

WPP is an insurance-based worker-protection arrangement. WPS (Wage Protection System) is the system used to monitor and process wage payments; it is not the same as WPP insurance.

### How much does WPP insurance cost?

Published Insurance Pool/MOHRE rates include AED 144.38 for skilled workers, AED 189 for limited-skilled workers and AED 262.5 for high-risk establishments that are not compliant with WPS. Domestic-worker insurance premium is listed at AED 105. These products are shown with a 30-month coverage period.

### Does WPP remove the employer’s liability to pay workers?

No. If an insurer pays a worker’s covered dues, the employer remains responsible for those obligations and typically has to reimburse the insurer.

### Can an employer deduct WPP premium costs from a worker's salary?

No. Under Article 6 of Federal Decree-Law No. 33 of 2021, all recruitment, visa, and mandatory labor insurance costs must be borne entirely by the employer. Consequently, deducting WPP costs from an employee’s wage is illegal.

### Does WPP apply to Free Zone companies?

MOHRE-registered private sector companies are required to comply with WPP. Certain free zones operate under independent labor regulations or separate financial guarantee/insurance systems. Employers in free zones should check directly with their respective Free Zone Authority (e.g., DIFC, ADGM, JAFZA).

### What happens if an employer fails to enroll in a Work Protection Program?

Employers who do not provide either a valid bank guarWhat is WPP Insurance in the UAE?antee or a WPP policy risk severe penalties. These include MOHRE fines, blocked establishment cards, and an inability to issue or renew work permits for any staff.

### What is WPP Pool?

The WPP Insurance Pool is a UAE insurance scheme supervised by MOHRE. It protects eligible workers against certain unpaid employment dues if their employer cannot meet its obligations. It can cover unpaid wages, end-of-service benefits and certain repatriation and work-related costs, subject to the policy terms.

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