Bank guarantee for UAE employers
This page covers the labour guarantee that MOHRE sets for employers, and the insurance policy an employer can choose instead. It is shorter than our other pages because little else is confirmed by an official source.
The short answer
A labour bank guarantee is a guarantee that a UAE employer provides for its workers under Ministerial Resolution No. 318 of 2022, issued by the Ministry of Human Resources and Emiratisation (MOHRE). It is at least AED 3,000 for each worker, from a UAE based bank, valid for one year and renewed automatically. Employers can choose an insurance policy instead of the guarantee.
What is a bank guarantee, and when does a UAE employer need one?
For an employer, it is a guarantee issued by a bank for the company's workers, payable on MOHRE's demand. The governing instrument is Ministerial Resolution No. 318 of 2022 concerning Bank Guarantees and Employees Protection Insurance Scheme, issued on 9 August 2022.
The resolution gives employers two options: a bank guarantee or an insurance policy.
Bank guarantee or insurance: what are the two options?
The employer chooses between a bank guarantee of at least AED 3,000 for each worker and a 30 month insurance policy. The amounts below are published by MOHRE. They were checked in September 2026 and can change.
| Option | Amount | Term | Conditions |
|---|---|---|---|
| Bank guarantee | At least AED 3,000 for each worker | One year, renewed automatically | From a UAE based bank, payable on MOHRE's demand |
| Insurance policy | AED 137.50 per skilled worker, AED 180 per low skilled worker, AED 250 per worker in high risk establishments not registered with the Wages Protection System | 30 months | Covers up to AED 20,000 per worker |
What does the insurance policy cover?
The insurance covers up to AED 20,000 per worker. That includes the last 120 working days of wages, the end of service gratuity and repatriation costs.
The UAE Government portal states that health insurance is not covered by this policy. It gives a premium of AED 105 for domestic workers, checked in September 2026.
The portal notes that the insurance scheme was introduced on 15 October 2018 as an alternative to the AED 3,000 guarantee.
What is not confirmed by an official source?
Several common questions have no official answer that we could find, so this page does not answer them.
We prepare the application and tell you the cost in writing before you commit. The bank decides whether to issue a guarantee and on what terms.
- Guarantee amounts for specific licensed activities
- Guarantees for government tenders and performance bonds
- The cash margin, fees and issuing times of banks
- Whether the MOHRE guarantee or insurance scheme applies to free zone companies
Good to knowDMCC states that no immigration deposit is required for its partner or investor visa. That applies to DMCC only. Checked in September 2026.
Bank guarantee: common questions.
Answered from the official sources listed below. If yours is not here, ask us directly.
What is a bank guarantee and when would my UAE company need one?
For an employer, it is a guarantee from a UAE based bank for the company's workers, payable on MOHRE's demand. Ministerial Resolution No. 318 of 2022 sets it at a minimum of AED 3,000 for each worker and lets the employer choose an insurance policy instead.
Do I have to lodge AED 3,000 per employee with the labour ministry?
Not necessarily. Under Ministerial Resolution No. 318 of 2022, employers choose between a bank guarantee of at least AED 3,000 for each worker and an insurance policy.
What does the insurance option cost, and can I choose it?
Yes, the employer chooses. MOHRE publishes a 30 month policy at AED 137.50 per skilled worker, AED 180 per low skilled worker and AED 250 per worker in high risk establishments not registered with the Wages Protection System. Figures were checked in September 2026 and can change.
Can I get the guarantee from my bank at home instead of a UAE bank?
MOHRE states that the labour bank guarantee comes from a UAE based bank. It is valid for one year, renewed automatically and payable on MOHRE's demand.
Is there a guarantee for sponsoring a domestic worker?
ICP's residency permit service lists an annual domestic worker guarantee of AED 5,000 among its fees. The figure was checked in September 2026 and can change.
Where these facts come from
Every fact on this page was checked against the official source on 29 September 2026. Rules and fees change, so we confirm the current position before any application.
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