Workmen's compensation insurance, explained against UAE Labour Law
For contractors, manufacturers, logistics, hospitality and any business with site or field staff. Know exactly what the law makes you pay if an employee is hurt at work, and move that cost to an insurer.
- UAE Labour Law liability
- Employer's liability extension
- Priced on wageroll
- Contract-compliant certificates
By Shamna Ponnath Valappil, Senior Insurance Officer · Updated 26 September 2026Under UAE Labour Law (Federal Decree-Law No. 33 of 2021), employers must pay treatment costs and compensation when an employee is injured at work or develops an occupational disease. For death or total permanent disability, compensation is 24 months' basic wage, within AED 18,000 to AED 200,000. Workmen's compensation insurance transfers this liability to an insurer, and an employer's liability extension covers claims above the statutory amounts.
What the law makes the employer pay
- Full treatment costs until the employee recovers or a disability is confirmed, including hospital stays, surgery, medicines, rehabilitation and transport to treatment.
- Wages during treatment: full pay for the first 6 months and half pay for the next 6 months if treatment continues.
- Death or total permanent disability: 24 months' basic wage, minimum AED 18,000 and maximum AED 200,000.
- Partial permanent disability: the disability percentage from the official schedule, applied to 24 months' basic wage.
- Reporting duties: work injuries must be reported promptly (the government portal gives 48 hours), and compensation paid within 10 days of the medical report.
These are the statutory figures published on the UAE government portal. Always check the current law and your policy wording for your own situation.
What workmen's compensation insurance covers
| Cover | What it pays |
|---|---|
| Workmen's compensation | Statutory compensation and treatment costs under UAE Labour Law for injury or occupational disease arising from employment |
| Employer's liability extension | Claims above the statutory amounts, for example where a court awards more due to employer negligence, up to the chosen limit |
| Common extensions | Repatriation of remains, 24-hour cover, cover for staff travelling abroad on company business |
Group medical does not replace workmen's compensation. Health insurance covers general medical care, while work injury costs and compensation are the employer's legal liability.
Who needs it most
Construction and contracting, manufacturing, logistics and warehousing, facility management, hospitality, security and cleaning services, plus any business with drivers or field staff. Main contractors and tender documents very often require subcontractors to show a valid workmen's compensation certificate before they can go on site.
How it's priced
Premium is based on your estimated annual wageroll by job category. Office staff cost far less to insure than site labour. Claims history, safety record and the limit of indemnity also matter. Some policies are adjusted at expiry against the actual wageroll, so accurate estimates avoid surprises.
What I need for a quote
- Trade licence and a description of your activities.
- Headcount and annual wages by job category (office, supervisors, site or field workers, drivers).
- Any overseas travel or secondments.
- Claims history for the last 3 years and current policy, if renewing.
Frequently asked questions
Is workmen's compensation insurance mandatory in the UAE?
The law makes the employer liable for work injury compensation whether or not it is insured. Insurance is how most employers fund that liability, and main contractors and tender documents often require a certificate. Check your contracts and any authority requirements for your activity.
Does group medical insurance cover work injuries?
It isn't designed to. Treatment and compensation for work injuries are the employer's statutory liability, which workmen's compensation covers. Relying on the health plan can leave the company exposed to compensation claims.
Should office staff be included?
Usually yes, at a low office rate. Office employees can be injured at work or while travelling on business, and including them avoids gaps.
What is employer's liability cover?
An extension that covers the employer's legal liability beyond the fixed statutory compensation, for example a court award for negligence, up to a limit you choose.
How quickly can a certificate be issued for a contract?
Once I have your trade licence, headcount and wageroll details, quotes usually follow within a few working days, and a certificate is issued as soon as the policy is placed.
10+ years in insurance, six internationally and four in the UAE market. Shamna compares personal and business cover across insurers for clients in all seven Emirates. More about Shamna
Last reviewed: 26 September 2026. General information only, not advice; policy terms decide cover.
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Shamna Ponnath Valappil is a Senior Insurance Officer with Gargash Insurance Services LLC, a UAE insurance broker regulated by the Central Bank of the UAE. Insurance arranged through this site is placed by Gargash Insurance Services LLC. Quotes are subject to underwriting by the relevant insurer(s); final terms, premiums and cover are confirmed when a policy is issued.