WPP Insurance UAE (2026): MOHRE's Worker Insurance vs the AED 3,000 Bank Guarantee — Cost, Cover and Refunds

Under a 2022 resolution of the Ministry of Human Resources and Emiratisation (MOHRE), a private-sector establishment protects its workers' entitlements in one of two ways: a bank guarantee or an insurance policy. The insurance is sold through the Insurance Pool, whose website calls it the Workers Protection Program (abbreviated here as WPP). This guide is built from u.ae's Insurance against defaulting/non-compliant employers page (updated 7 August 2025) and MOHRE's announcement of Ministerial Resolution No. 318 of 2022 (9 August 2022), read on 25 October 2026.

WPP insurance or bank guarantee: the two options

Quick answer: under Ministerial Resolution No. 318 of 2022, an establishment either posts a bank guarantee of at least AED 3,000 per worker or buys an insurance policy for the worker. u.ae says the insurance replaced the mandatory bank guarantee on 15 October 2018 as "a low-cost insurance system", and that both systems now run in parallel so employers can choose.

How much WPP insurance costs

u.ae and MOHRE both say a policy is valid for 30 months. MOHRE words the high-risk tier as "each worker paid by high-risk establishments that are not registered with the Wages Protection System (WPS)". (u.ae's section on new workers describes it as a two-year policy bought with the work permit; the premium table and MOHRE's announcement give 30 months.) How salaries are paid through WPS is covered in our WPS guide.

What the insurance covers

u.ae: "In case of a company's bankruptcy or failure to pay the workers' entitlements, the new policy will provide a maximum insurance coverage of AED 20,000 per worker." For private-sector workers, u.ae says covered entitlements include:

• unpaid wages, up to the last 120 days before the worker's last working day (MOHRE's announcement says "the worker's last 120 working days")
• end-of-service benefits
• repatriation costs
• costs of repatriating the body in case of death
• medical expenses related to work injuries or occupational diseases
• airfare for a worker reported absconding, if a report was filed and the worker was apprehended during the coverage period

Health insurance is not covered by this policy (u.ae).

What the employer still owes

The policy pays the worker; it does not take the debt off the employer. u.ae: "Employers would still have to pay back to the insurance company all dues which the latter paid to the worker." If the employer does not repay, "MoHRE will suspend the employer's file and freeze new work permits", and will require an AED 3,000 bank guarantee when existing work permits are renewed (u.ae notes this applies to firms, not to domestic workers).

Where to buy WPP insurance

u.ae says the employer can buy the policy from the Insurance Pool website (dubins-wpp.ae), and that "the insurance policy is issued instantly upon submitting the work permit application through the approved service centres". The insurance document can also be processed through business services centres, domestic worker recruitment offices and the MOHRE app. For the permit itself, see our work permit guide.

Moving existing workers off a bank guarantee

• Current workers: u.ae says the employer can move a worker who is covered by a bank guarantee to the insurance "only after renewing their permits, not before".
• New workers: buy the insurance with the work permit application, or submit the AED 3,000 bank guarantee.
• Refund on switching: a guarantee can be refunded when an insurance policy is bought on permit renewal, "provided the company has not committed any salary payment violations in the six months prior to the permit renewal" (u.ae).

The bank guarantee can be reclaimed when:

1. the worker's permit is cancelled and they have left the UAE (with proof);
2. the worker has died and been repatriated or buried in the UAE;
3. the worker has transferred to a new employer;
4. in any other case where the employer proves the work permit was cancelled and the worker's entitlements were paid in full.

After the refund receipt is issued, the employer collects the deposited amount from the bank (u.ae).

WPP is not ILOE

WPP protects workers against an employer that cannot pay; the employer buys it. ILOE is the separate job-loss insurance scheme for employees, with its own subscription rules and fines; see our ILOE guide.

How ZETUP PRO helps

For mainland companies on a monthly retainer, we file work permits and renewals with the WPP policy or bank guarantee on each worker's file, keep payroll on WPS, and handle bank guarantee refunds when a worker's permit is cancelled. See what our PRO services in Dubai cover.

Frequently Asked Questions

Q: What is WPP insurance in the UAE? A: It is the insurance policy an employer can buy for each worker instead of the AED 3,000 bank guarantee, under Ministerial Resolution No. 318 of 2022. The Insurance Pool, which sells it, calls it the Workers Protection Program (WPP is the common abbreviation). It covers the worker's entitlements up to AED 20,000 if the employer goes bankrupt or fails to pay.

Q: How much does WPP insurance cost? A: Per u.ae, AED 137.50 per skilled worker, AED 180 per low-skilled worker, AED 250 per worker of a high-risk establishment not compliant with the Wages Protection System, and AED 105 per domestic worker. A policy is valid for 30 months.

Q: Is WPP insurance mandatory? A: The insurance is one of two options. Under Ministerial Resolution No. 318 of 2022, an establishment may either post a bank guarantee of at least AED 3,000 per worker or buy the insurance policy for the worker.

Q: Where do I buy WPP insurance? A: u.ae says from the Insurance Pool website (dubins-wpp.ae); the policy is issued instantly when the work permit application is submitted through MOHRE's approved service centres.

Q: What does WPP insurance cover? A: Up to AED 20,000 per worker: unpaid wages for up to the last 120 days, end-of-service benefits, repatriation, repatriation of the body in case of death, work-injury medical costs, and airfare for an absconding worker who is caught during the cover. It does not cover health insurance.

Q: Can I switch existing workers from a bank guarantee to insurance? A: Yes, but only when you renew the worker's permit, not before (u.ae). The guarantee is then refunded if the company has had no salary payment violations in the six months before the renewal.

Q: When can I get the AED 3,000 bank guarantee back? A: When the worker's permit is cancelled and they have left the UAE, when the worker has died and been repatriated or buried, when the worker transfers to a new employer, or in any other case where you prove the permit was cancelled and the worker was paid in full (Ministerial Resolution No. 318 of 2022, per MOHRE and u.ae).

Q: Is WPP the same as ILOE? A: No. WPP is bought by the employer and protects the worker if the employer cannot pay. ILOE is the separate job-loss insurance scheme for employees.