20 June 2018
UAE: New Government Schemes Slashes Costs of Mandatory Employee Insurance
Employers will no longer be required to provide a cash guarantee of UAE Dirham 3,000 (US$817) for each new worker they recruit. Under the terms of a new government-backed scheme, employee insurance cover will instead be secured via the payment of UAE Dirham 60 per worker on an annual premium basis.
The scheme is intended to provide better protection for employees in the private sector, while also reducing operating costs for employers. In addition, the government expects the release of an estimated UAE Dirham 14 billion of refunded deposits will provide a boost to the local economy.