UAE Statutory and Private Employee Benefits, 2023 Update
Powered by
All the vital news, analysis, and commentary curated by our industry experts.
UAE Statutory and Private Employee Benefits Report Overview
The United Arab Emirates (UAE) has undergone a huge transformation following the discovery of oil in the 1950s, going from a poor region to a contemporary state with a high standard of living. The country, however, only provides social security benefits to UAE nationals. The country does not have a social security system comparable to those that expatriates from other countries have access to. Expatriate employees and employers of an expatriate are not required to make contributions to any social security scheme. The country’s social security system is governed by the Pension and Social Security Federal Law. The General Pension and Social Security Authority (GPSSA) and Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) are both responsible for UAE social insurance and pension benefits. Individuals can also voluntarily participate in private benefit plans.
The UAE employee benefits market research report provides in-depth industry analysis, information, and insights into employee benefits in UAE, including an overview of the state and compulsory benefits in UAE, detailed information about the private benefits in the country, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in UAE.
Key Regulations | Federal Law No. 1 of 1972, Federal Law No. 24 of 1981, dated 07 November 1981, Federal Law No. 15 of 1985, dated 15 December 1985, Federal Law No. 12 of 1986, dated 27 October 1986, and Federal Law No. 7 of 1999 |
Key State and Compulsory Benefits | Retirement Benefits, Death in Service, Long-Term Disability Benefits, Short-Term Sickness Benefits, Medical Benefits, Workers’ Compensation Insurance, Maternity and Paternity Benefits, and Other Benefits |
Key Private Benefits | Retirement Benefits, Death Benefits, Medical Benefits, Disability Benefits, Accidental Death and Dismemberment Benefits, and Other Benefits |
Regulations Guiding Employee Benefits Market in UAE
Some of the key regulations guiding the employee benefits market in UAE are Federal Law No. 1 of 1972, Federal Law No. 24 of 1981, dated 07 November 1981, Federal Law No. 15 of 1985, dated 15 December 1985, Federal Law No. 12 of 1986, dated 27 October 1986, and Federal Law No. 7 of 1999 among others.
UAE Employee Benefits Market Segmentation by State and Compulsory Benefits
The key state and compulsory benefits offered by employers in UAE are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.
Workers’ Compensation Insurance: An accident is considered a work accident when an employee suffers an accident at his workplace, or while traveling to or from the workplace. The employer must report to the police or the Ministry if an employee meets with a fatal accident or suffers from an occupational disease. Workmen’s compensation applies to all private company employees and expatriates working in the UAE, although not to families of employers, domestic staff, agriculture employees, part, or short-term (fewer than six months) employees, employees of companies with fewer than five employees, or employees of a federal or local government project
Short-Term Sickness Benefits: Short-term sickness benefits in the UAE are regulated by the Federal Labor Law 8/1980. These benefits are entirely financed by the employer. Employees must inform the employer regarding illnesses that prevent them from performing their usual work within a maximum period of two days. Employees are not eligible for paid sick leave during the probation period. After a minimum of three months of continuous employment following this period, an employee can become eligible for sickness benefits.
UAE Employee Benefits Market Segmentation by Private Benefits
The key private benefits offered by employers in UAE are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.
Death Benefits: A company must have a group of at least 11 individuals to be eligible. The insured must be an active employee of the organization. The age criteria range between 18 and 65. The maximum age of entry in the plan is 64 years. The benefits will be provided only until the age of 70 years.
Medical Benefits: All full-time employees in active employment for a company operating in the UAE are eligible. Furthermore, a six-month vesting period for new members joining group medical insurance for the first time without continuity of cover may be applied. A group plan must cover at least 10 employees.
For more insights into the UAE employee benefits market, download a free report sample
Scope
This report provides a detailed analysis of employee benefits in the UAE –
- It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits.
- It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen’s compensation insurance, maternity and paternity benefits, family benefits, unemployment benefits, Long-term care benefits, leaves and holidays, and private benefits.
- It highlights the economic and regulatory situations relating to employee benefits in UAE.
Key Highlights
• The Ministry of Social Affairs, Social Security Department, Department of Welfare and Rehabilitation of Persons with Disability, Social Protection Department, Child Department, Social Affairs Office, and Social Education House organizations are responsible for the functioning of the overall social security system.
• A person’s national insurance contribution is determined based on their income.
• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to a credited contribution.
• In UAE, employers provide voluntary retirement benefits to their employees through end-of-service benefits (ESBs) and enhanced ESBs.
Reasons to Buy
- Make strategic decisions using in-depth information related to employee benefits in the country.
- Assess employee benefits of the market, including state and compulsory benefits and private benefits.
- Gain insights into the key employee benefit schemes offered by private employers in the country.
- Gain insights into key organizations governing the employee benefits market, and their impact on companies.
Table of Contents
Table
Frequently asked questions
-
What are the key regulations guiding the employee benefits market in UAE?
The key regulations guiding the employee benefits market in UAE are Federal Law No. 1 of 1972, Federal Law No. 24 of 1981, dated 07 November 1981, Federal Law No. 15 of 1985, dated 15 December 1985, Federal Law No. 12 of 1986, dated 27 October 1986, and Federal Law No. 7 of 1999.
-
What are the key state and compulsory benefits in the UAE employee benefits market?
The key state and compulsory benefits in the UAE employee benefits market are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.
-
What are the key private benefits in the UAE employee benefits market?
The key private benefits in the UAE employee benefits market are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.
Get in touch to find out about multi-purchase discounts
reportstore@globaldata.com
Tel +44 20 7947 2745
Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.