Dubai’s mandatory medical insurance arrives in 3 stages

Keren Bobker answers a reader's question about whether medical insurance for employees is now mandatory for companies in Dubai.

I have been offered a job by a company based in Dubai, but the offer does not include medical insurance. I am currently on an Abu Dhabi visa and have cover as per the law, but I heard that companies in Dubai must now also provide medical insurance for their employees. When I queried this I was told I was wrong, but friends agree with me. Can you confirm who is right? P L, Abu Dhabi

A new law has just come into effect in Dubai which states that employers must provide medical insurance for their staff, but the requirement is not immediate. There are various implementation dates depending on the size of the company. The largest companies with 1,000 or more employees must provide cover by October of this year; companies with 100 to 999 employees have until July 2015 and the remainder have until June 2016. Employers are required to provide cover for their employees, not their families. Employees are expected to provide cover for their dependents, and any domestic staff, by the end of June 2016 at the latest. Employers who do not comply will face substantial fines of up to Dh150,000. In P L’s case, the new employer has until July 2015 to provide medical insurance so if he takes this job he should consider making his own arrangements in the interim.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Contact her at [e-mail]