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The “70% Wage” Rule: How Loss of Income Payouts Actually Work in the UAE
February 12, 2026
7:31 PM
- Add-ons that Matter: Is “Common Law Liability” Worth the Extra Premium?
- Hiring Your First Employee? Your 2026 Insurance Checklist for Dubai
- Workmen’s Comp vs. Employer’s Liability: Why You Need Both in 2026
- Repatriation Cover: Why This is the Most Critical Add-on for Industrial Employers
- Reporting Accidents: The 24-Hour Rule You Must Follow to Keep Your Policy Valid
Sustaining Livelihoods During Recovery
When a workplace injury occurs in 2026, the immediate focus is on medical care. But for the employee, the second concern is: “How will I pay my rent if I can’t work?” The UAE Labor Law is very specific about wage replacement during treatment. At CoverB, we help employers understand their obligations and how a workmen compensation insurance policy can take over this financial burden.
The 2026 Payout Schedule
Under Article 145 of the Labor Law, if an injury prevents an employee from performing their duties, the employer must pay:
- First 6 Months: 100% of the employee’s full salary.
- Next 6 Months (or until recovery): 50% of the employee’s full salary. Failure to pay these wages can lead to automatic WPS flags and heavy MOHRE penalties. Our workmen compensation insurance dubai plans are specifically designed to reimburse these salary outlays, ensuring your company’s cash flow remains stable while your employee focuses on getting better.
Defining the “Basic” vs. “Total” Salary
There is often confusion about which salary figure to use for compensation. While death and disability benefits are calculated on the Basic Salary, the monthly “Loss of Wages” allowance is typically calculated on the Total Salary (including housing and transport allowances). This is because the employee still needs to pay their living expenses in Dubai while they are injured. CoverB ensures your workmen compensation coverage is calibrated to these 2026 definitions.
When Does the Payout Stop?
The wage replacement stops the moment the employee is declared fit for work by a government-approved medical board, or when they are declared permanently disabled (at which point the lump-sum disability benefit kicks in). By having a policy with CoverB, you get the benefit of our medical liaisons who help track the recovery progress and ensure payouts are accurate and timely.
Conclusion: Financial Peace for You and Your Team
A workplace injury shouldn’t lead to a financial crisis for your business or your staff. Visit https://coverb.ae/liability/workmens-compensation-insurance/ and see how CoverB manages wage protection in the 2026 market.
