The United Arab Emirates (UAE) has always been known for its strong labour laws and commitment to protecting workers’ rights. One important program is the Workers Protection Program (WPP) Insurance. This program helps ensure employees receive their rightful payments even if their employers face financial difficulties.
As an employer in the UAE, understanding WPP Insurance is important for compliance with local labor laws and ensuring a secure and fair work environment. This guide explains what WPP Insurance is, its benefits, who needs it, and how to get it.
What is WPP Insurance?
Workers Protection Program (WPP) Insurance is a financial protection plan introduced by the UAE Ministry of Human Resources and Emiratisation (MOHRE). It covers workers if their employers cannot pay their salaries or benefits due to financial complications.
This program replaces the traditional bank guarantee, which requires employers to deposit money for each employee. Instead, WPP Insurance offers an affordable and efficient way to ensure employees get paid fairly.
Features of WPP Insurance in the UAE
Here are some of the important features of the WPP insurance in the UAE:
- Protects employees’ rights: Ensures workers get their payments even if an employer cannot pay.
- Employer-friendly: Reduces the need for large bank deposits.
- Covers multiple risks: Includes unpaid wages, end-of-service benefits, and workplace injuries.
Why was WPP Insurance introduced in the UAE?
Before WPP Insurance, employers had to submit a bank guarantee of at least AED 3,000 per worker. This system created problems:
- Employers faced cash flow issues due to large blocked deposits.
- Employees had limited protection if an employer went bankrupt.
To address these issues, the UAE Cabinet replaced the mandatory bank guarantee for hiring workers with a low-cost insurance scheme. As a result, the Insurance Pool introduced WPP Insurance under the supervision of the Ministry of Human Resources and Emiratisation (MOHRE) in 2018, offering a more flexible and affordable solution.
What are the goals of WPP Insurance?
- Reduce financial pressure on companies.
- Ensure faster payments to employees in case of disputes or financial troubles.
- Improve labour market stability in the UAE.
What does the WPP Insurance cover?
WPP Insurance provides financial protection for employees if their employer fails to meet their obligations. It covers:
| Benefit type | Description |
| End-of-service benefits | Ensures employees receive their final payment and any other benefits when they leave the job. |
| Work-related injuries | Pays for medical treatment and compensation if an employee gets hurt at work. |
| Unpaid salary | Helps employees if their employer doesn’t pay their wages. |
| Repatriation of mortal remains | Covers the cost of sending an employee’s body back to their home country if they pass away. |
| Return cost | Pays for travel expenses if an employee has to return to their home country because their employer can’t keep them employed. |
Important note: Coverage amounts vary depending on the insurance provider and the policy plan chosen.
Benefits of WPP Insurance in the UAE
Here are the benefits that are associated with employers and employees:
For employers:
- Lower financial burden: No need for large bank deposits.
- Regulatory compliance: Meets MOHRE labour law requirements.
- Better cash flow: Frees up funds for business operations.
- Easy registration: Quick and simple process via MOHRE-approved insurers.
- Reputation management: Demonstrates a commitment to employee well-being.
Who needs to enrol in WPP insurance?
Under MOHRE regulations, all private sector employers must provide their employees with a bank guarantee or WPP Insurance. This applies to:
- Companies hire expat workers under work permits.
- Small and medium enterprises (SMEs) and large corporations.
- Businesses in construction, retail, services, and other industries.
Some government institutions and free zone companies may have different rules. Employers should check with MOHRE or their free zone authority.
WPP Insurance v/s Bank Guarantee
By looking at this table, you should be clear about why WPP is more beneficial than a bank guarantee:
| Feature | WPP Insurance | Bank Guarantee |
| Cost | AED 100-600 per worker | AED 3,000 per worker |
| Coverage | Up to AED 20,000 per worker | Limited to the deposit amount |
| Flexibility | More flexible and scalable | Less flexible |
| Process | Easy enrollment through insurers | Requires bank dealings |
| Cash flow impact | No large funds blocked | Funds are locked in banks |
Many businesses prefer WPP Insurance because it is more cost-effective and provides better coverage than a bank guarantee.
How to get a WPP insurance in the UAE?
Here are some of the common steps that you need to follow in order to get WPP insurance in the UAE:
STEPS:
1. Step 1: Identify how many employees need coverage.
2. Step 2: Go to the https://www.mohre.gov.ae/en/home.aspx
3. Step 3: Click on “Workers Protection Program’’.
4. Step 4: You will be taken to the “Insurance Pool” website by clicking.
5. Step 5: On the screen, click “Subscribe here” under “Workers Protection Program”.
6. Step 6: Apply through the Insurance Pool website.
7. Step 7: Select the number of certificates and pay the insurance premium based on the employees.
8. Step 8: The insurer will issue a certificate confirming coverage.
9. Step 9: To maintain compliance, please keep records and renew insurance on time.
What’s the bottom line?
WPP Insurance is an important step toward worker protection in the UAE. It ensures employees receive their wages and benefits while helping employers manage financial responsibilities more efficiently.
By choosing WPP Insurance, businesses can improve cash flow, meet legal requirements, and build a stable work environment. If you’re an employer in the UAE, now is the time to consider switching to WPP Insurance for a smarter, more efficient workforce protection strategy.
Frequently Asked Questions (FAQs):
Q. Is the workers’ protection program mandatory?
Yes, the program is required for new work permits and employment visas. Employers in Dubai South must also provide coverage for their current employees when renewing their residence visas.
Q. Does WPP Insurance replace health insurance?
No, WPP Insurance only covers salary, end-of-service benefits, and workplace injuries. Employers must still provide mandatory health insurance.
Q. What happens if an employer does not follow WPP rules?
If an employer does not comply, they may face fines, legal action, and restrictions on hiring new employees.
Q. Can employees apply for WPP Insurance directly?
No, employees cannot claim it directly. If an employer fails to pay, claims must go through MOHRE.
Q. Who provides WPP insurance?
The UAE government has authorised MOHRE-approved insurance providers, such as:
- Dubai Insurance Company (dubins.ae)
- Orient Insurance
- Oman Insurance Company
