Who Pays for UAE Health Insurance? Understanding Employer Obligations, Coverage Rules and the Latest Legal Requirements

Health insurance is no longer just an employment benefit in the UAE — it is a legal obligation. Across the country, employers are required to provide and finance health insurance for their employees, while sponsors of domestic workers are also responsible for ensuring mandatory medical cover. Recent regulatory changes have further strengthened this framework by extending compulsory health insurance to private-sector employees and domestic workers across all emirates, creating a more uniform system of healthcare protection.

Although the overarching principle remains the same nationwide, the detailed requirements vary between emirates. The extent of family coverage, the minimum level of insurance and the responsibilities of employers and sponsors are determined by the regulations applicable in each emirate. What does not change, however, is that employees should never be required to bear the cost of the mandatory health insurance provided for their employment.

Employer Responsibility for Employee Health Insurance

Under the UAE's health insurance framework, employers are legally responsible for arranging and paying for health insurance for their employees. This obligation applies to private-sector employers as well as companies operating in free zones. Employers are not permitted to recover the cost of compulsory health insurance by deducting it from an employee's salary or employment benefits.

Similarly, sponsors of domestic workers must obtain the required health insurance coverage as part of their legal obligations. Health insurance has become an essential component of the employment and residency process, with compliance linked to the issuance and renewal of residence visas.

Family Health insurance Depends on Sponsorship

While employers must insure their employees, the rules relating to family members differ depending on the emirate and the terms of an employer's insurance policy. Where a spouse or children are not already covered under an employer-sponsored health insurance plan, the responsibility generally falls on the individual sponsoring those dependants to arrange the required medical insurance.

As a result, employees should not automatically assume that their family members are included under their workplace insurance. The applicable legal requirements and the scope of the employer's insurance policy will determine whether separate coverage needs to be arranged.

Dubai's Health Insurance Requirements

In Dubai, employers are required to provide and pay for health insurance for all employees, including those working in free zones. The law expressly prevents employers from passing this expense on to employees through salary deductions or any other form of reimbursement.

For dependants, including spouses and children, the responsibility lies with the sponsor if they are not already covered under an employer's insurance scheme. Dubai's Health Insurance Law also requires sponsors to provide at least an Essential Benefits Plan (EBP), ensuring access to basic healthcare services. Premiums for this plan generally range between Dh550 and Dh650, making health insurance accessible even for lower-income employees.

Abu Dhabi's Approach

Abu Dhabi's regulations also require employers and sponsors to provide health insurance, but the rules extend further in relation to dependants. Coverage must include the employee, their legally sponsored spouse and up to three children, subject to the emirate's applicable requirements.

This framework ensures that eligible family members receive medical coverage alongside the employee, reflecting Abu Dhabi's long-standing approach to mandatory health insurance.

Mandatory Coverage Across the Northern Emirates

A significant development came in 2025 when mandatory health insurance was extended to private-sector employees and domestic workers in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah.

 

Under the latest requirements, employers are responsible for purchasing the prescribed health insurance policy when applying for or renewing an employee's residence visa. The move has brought the northern emirates in line with the broader national objective of ensuring that all eligible private-sector workers have access to healthcare through compulsory insurance.

What Employees Should Know

The legal position across the UAE is clear: employers must pay for an employee's mandatory health insurance, and this cost cannot be transferred to the employee. The position regarding spouses and children depends on the applicable emirate's regulations and whether an employer's policy already extends to dependants. Where it does not, the responsibility generally rests with the sponsor to arrange separate insurance.

Although the UAE now has a nationwide system of mandatory health insurance for private-sector employees and domestic workers, employees and sponsors should remain aware that individual emirates continue to apply their own rules regarding eligibility, minimum coverage and dependent benefits. Understanding these differences is essential for ensuring full compliance with the law while maintaining uninterrupted access to healthcare.

 
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