I work for a small company in Dubai and the owner is putting in place a medical insurance scheme for the staff, as I understand he has to do. He has said that we can also add our families to it if we want to as it is cheaper than sorting out our own plans. Now we have been told that we each have to pay for our own cover and that this will be deducted from our salaries. The same will apply for our families and while I don't mind paying for them, surely he has to pay for his employees? MT, Dubai
In accordance with Dubai Health Authority (DHA) rules, everyone on a Dubai residency visa must have compliant medical insurance and the last stage of this applies to small companies (those with fewer than 100 employees) and also individuals, with a deadline of June 30, 2016.
The rules are very clear and the employer is responsible for paying the premiums in every case. They are not permitted to make any employees pay for their own cover. Note that the employer is legally obligated to provide suitable insurance for all employees, even those that they do not sponsor directly such as a woman on her husband’s visa.
That is the case even if the employee is provided with insurance from a spouse’s employer. While an employer is not obliged to extend cover to employee’s dependents, this is encouraged by the DHA and if they decide to extend the cover, the cost must still be borne by the employer and cannot be passed on. The rules are very clear and will be strictly enforced by the DHA. Any companies that do not fully comply will be liable for substantial fines.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.
The advice provided in our columns does not constitute legal advice and is provided for information only.
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