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1. What is the new mandatory health insurance scheme announced by the UAE Cabinet?
- The UAE Cabinet has announced the implementation of mandatory health insurance for all private sector employees starting January 1, 2025. This decision extends coverage to employees in emirates outside Dubai and Abu Dhabi, as well as domestic workers who currently lack health insurance.
2. Who is responsible for paying for the health insurance under this scheme?
- Employers in the private sector and those employing domestic workers are required to bear the costs for health insurance for their registered employees upon issuing or renewing their residency permits. Employees themselves are not required to pay for the insurance scheme.
3. How will the UAE enforce the mandatory health insurance rule?
- Employers will need to provide a healthcare package for their workers as part of the residency permit process. Visa issuance or renewal may be contingent upon having valid health coverage.
4. Are there penalties for non-compliance with the mandatory health insurance requirement?
- While specific penal measures for the UAE-wide scheme have not been specified yet, existing schemes in Abu Dhabi and Dubai impose fines ranging from Dh300-500 per month per individual for non-compliance.
5. What does the mandatory health insurance scheme cover?
- The specifics of coverage have not been outlined yet. However, typical coverage includes emergencies, surgeries, medical diagnosis, medication, outpatient and inpatient treatments, and maternity care. There may be limitations, conditions, and co-insurance requirements in place as well.
6. Will employees need to pay for insurance schemes for their family members?
- It’s not immediately clear if the law will obligate companies to pay for insurance schemes for their employees’ family members. Further clarification may be provided as the implementation progresses.
7. How will the Ministry of Human Resources and Emiratisation (MoHRE) support the implementation of the health insurance scheme?
- MoHRE will spearhead awareness campaigns and facilitate the activation of the health insurance scheme starting next year, ensuring employers and employees are informed about their rights and obligations.
8. Is there a restructuring of MoHRE associated with this announcement?
- Yes, Sheikh Mohammed approved a restructuring of MoHRE, introducing a new coordinating council for the UAE labor market, aiming to ensure the stability and competitiveness of the labor market and safeguard the rights of the workforce for the advancement of the national economy.
