On this page
- What you need to know now
- Read the launch price as historical information
- Understand what the policy is intended to protect
- Build the cost into the employment process
- Keep employment obligations and insurance records connected
- A practical way forward
- Frequently asked questions
- Official sources & further reading
What you need to know now
The AED 60 launch article is historical. MoHRE now publishes different worker-protection insurance packages by worker and establishment category.
The original article is preserved below as a historical record. Earlier deadlines, rates, offers and approval statements should not be used as current guidance.
- Do not confuse protection insurance with health or unemployment cover.
- Match the correct package to the worker category.
- Keep evidence with the work-permit file.
Read the launch price as historical information
The original 2018 announcement described the launch of an insurance alternative and quoted a premium for that time. It should not be used as a current quotation for every worker. MOHRE’s current materials identify different Worker Protection insurance packages and policy periods. Establish which category and work-permit process applies to the employment arrangement, then confirm the current terms through the appropriate channel. Avoid comparing a historical annual figure with a present multi-month policy price as though they cover the same period.
Understand what the policy is intended to protect
Worker protection arrangements address specified employee entitlements if the employer fails to meet them, subject to the policy terms. They should not be confused with general medical cover or other employee insurance products. Ask for the policy wording, coverage period and applicable limits, and keep the document available to the staff responsible for employment administration. Buying insurance does not replace the employer’s duty to pay wages and other amounts due under the contract and applicable rules.
Build the cost into the employment process
Prepare a record for each relevant worker showing the policy reference, category, effective dates and the associated permit or renewal action. Review the details when the employment arrangement changes or a renewal is due. Where a bank guarantee or insurance option is relevant, obtain current guidance rather than assuming that the original launch announcement determines the present choice. A written record makes it easier to confirm what was purchased and prevents premium payments from being separated from the worker they cover.
Keep employment obligations and insurance records connected
Maintain payroll, leave and other entitlement records so that the company can explain amounts due and resolve questions promptly. If a claim or entitlement issue arises, review the current policy and follow the designated process rather than relying on the summary in a news article. Record correspondence and actions taken. The historical announcement remains useful for understanding the policy’s introduction, while current package selection and administration should follow the latest MOHRE materials and the actual employment circumstances.
YOUR NEXT STEPS
A practical way forward
- 01
Step 1
Identify the applicable worker and establishment category.
- 02
Step 2
Check current MoHRE package terms and price.
- 03
Step 3
Retain the policy and renewal information.
CLEAR ANSWERS
Frequently asked questions
Is AED 60 a universal current premium?
No.
Does one policy automatically replace every other insurance obligation?
No. Identify the separate cover required.
Read the original article First published 15 October 2018 · retained for context
This earlier article is preserved for context. Its rates, deadlines, approvals and announcements may have been superseded. Use the current guidance and official references on this page for your next step.
Low-cost Worker Insurance
Low-cost Worker Insurance
Low-cost insurance initiative for UAE workers starts today: The new low-cost insurance is expected to pump Dh 14 billion back into the private sector.
The new low-cost insurance system, which takes effect today, will ensure long-term employee protection and enhance companies’ capital across the country, experts have said.
Low-cost Worker Insurance
Starting Monday, the Ministry of Human Resources and Emiratisation (MOHRE) will start refunding bank guarantees of Dh 3,000 per worker to employers, replacing it with a new insurance policy that costs Dh 60 per worker.
The new low-cost insurance, implemented based on a cabinet decision made in June, is expected to pump Dh 14 billion back into the private sector.
While officials said the ministry had taken necessary measures to begin issuing insurance documents and refunding bank guarantees to the employers, companies wait for the process to be applied smoothly. Industry professionals said the major cash liquidity would not only enhance their capital, but also ensure employees’ rights are upheld.
With the Dh 60 that will be paid to insure each worker annually, the system will offer a coverage of Dh 20,000 per worker to include their end-of-service benefits, vacation allowance, overtime allowance, unpaid wages, worker’s return ticket, and cases of work injury.
However, the most important thing about the system is the actual documentation and implementation.
A guide to the new insurance scheme
- >Dh 60-Amount that companies will pay for each worker’s insurance starting on October 15; instead of depositing Dh 3,000 as bank guarantees per worker
- >Dh 14B-Amount of bank guarantees that will be refunded to the private sector
- >Dh 20K-Each worker’s coverage per the new scheme
For private workers, it covers end of service benefits, vacation and overtime allowances, unpaid wages, return air tickets and work injuries
For domestic workers, the policy covers the cost of replacing the worker in cases of interruption of work, health inefficiencies, or the domestic worker’s desire to cancel the work relationship, in addition to the unpaid wages and the worker’s end of service benefits, vacation allowance and overtime allowance if not paid by the employer, a return ticket to his country as well as work injury cases
Establishments registered with the ministry will have two options:
Buy insurance that can be issued immediately when typing the work permit application at Tasheel or other establishments that can complete their own applications using the Tasheel e-service
Submit a Dh 3,000 bank guarantee on behalf of the employee, as per the rules and regulations of the current bank guarantee system
Safety net
The new insurance scheme would stimulate cash flow for businesses.The Dh 20,000 coverage would serve as a safety net for employees in case they didn’t receive their salaries on time or their employer went bankrupt.
VERIFY THE DETAIL
Official sources & further reading
- MoHRE — Worker protection insurance packages
- MOHRE: Worker Protection insurance system packages
- MOHRE: awareness package for new employers
Source checks support this general guide. Your treatment depends on the facts, tax period and applicable legislation.
