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Attracting and retaining top talent in the UAE is no longer just about offering competitive salaries. As the workforce evolves, companies are introducing improved benefits such as extended maternity leave, baby bonuses, and comprehensive insurance coverage to create a more supportive workplace environment.

The Shift Towards Family-Friendly Work Policies

Traditionally, maternity leave in the UAE’s private sector has been limited to 60 days. However, modern companies are working to expand these policies, offering up to a year of maternity leave to provide new mothers with more time to recover, bond with their babies, and transition back into the workforce with greater ease.

This change reflects a broader trend seen globally, where companies recognize that a strong benefits package greatly impacts employee retention. Research indicates that nearly 80% of women in the UK who return to full-time work after having a child end up leaving their jobs due to challenges in balancing work and childcare. By offering extended maternity leave, UAE employers aim to prevent such workforce dropouts and retain valuable talent.

Enhanced Employee Benefits: A Game Changer for Retention

According to the Mena Salary and Benefits Review 2025 by Tiger Recruitment, 47% of employees in the Middle East and North Africa are satisfied with their benefits, while 28% feel improvements are needed. The study also found that employees who are highly satisfied with their perks are significantly less likely to leave their jobs.

In response, companies are introducing a variety of family-friendly initiatives, including:

Baby Bonuses: Financial incentives to support employees during the early stages of parenthood.

Flexible Work Arrangements: Hybrid models that allow parents to balance professional and family responsibilities.

Comprehensive Health Insurance Plans: Covering maternity insurance in UAE, newborn child health insurance, and extended parental benefits.

Keeping in Touch (KIT) Days: Allowing mothers on maternity leave to work intermittently without affecting their statutory pay.

Paternity Leave Extensions: Offering fathers more time to bond with their children and share caregiving responsibilities.

The Role of Maternity Insurance in UAE 

Maternity insurance plays a crucial role in supporting employees through pregnancy and childbirth. Maternity insurance UAE policies cover medical expenses, prenatal and postnatal care, and delivery costs, easing financial burdens on employees. Additionally, newborn child health insurance ensures immediate medical coverage for infants, providing peace of mind to working parents.

Employers investing in reliable health insurance UAE packages not only comply with legal requirements but also help to create a workplace culture that values employee well-being. Providing maternity insurance in the UAE has become a key component of retention strategies, ensuring that employees feel supported both financially and professionally.

The Growing Demand for Competitive Benefits

The evolving workforce expectations in the UAE indicate that competitive salaries alone are not enough. Employees are increasingly prioritizing benefits such as maternity leave, childcare support, and financial incentives. The Mena Salary and Benefits Review 2025 highlighted that 84% of professionals expect higher salaries if required to work in-office full-time. 

However, many companies are addressing this demand through non-monetary perks, such as increased parental leave, remote work options, and wellness programs.

Other financial incentives gaining traction among UAE employers include:

• Annual leave buy-back schemes

• Employee savings programs

• Pension provisions exceeding legal minimums

• Performance bonuses and profit-sharing plans

• Professional development funding

• Workplace mental health and well-being programs

Why Family-Friendly Policies Matter

A strong benefits package has become a crucial factor in workforce retention and satisfaction. Studies show that companies offering additional benefits see higher levels of employee loyalty. Employees who are highly satisfied with their workplace perks are more likely to stay long-term, reducing turnover rates and associated recruitment costs.

Additionally, workplace flexibility has become a deciding factor for many professionals when choosing an employer. The rise of hybrid work models, childcare support, and mental health initiatives indicates that businesses must go beyond traditional compensation structures to remain competitive in the job market.

The Future of Workplace Benefits in the UAE

Companies that prioritize employee well-being by introducing progressive policies, such as extended maternity leave and financial incentives, are more likely to attract and retain top talent. As more organizations in the UAE recognize the link between benefits and employee loyalty, the landscape of workplace compensation continues to shift toward a more supportive and inclusive model.

For businesses looking to enhance retention strategies, focusing on maternity benefits, work-life balance initiatives, and comprehensive health insurance UAE solutions are essential. Investing in employee well-being leads to a more engaged workforce, greater productivity, and a company culture that fosters long-term success.

How Policyhouse Supports Your Maternity and Health Insurance Needs

At Policyhouse, we understand the importance of financial security and well-being for growing families. With evolving workplace benefits and extended maternity leave policies, having the right insurance coverage is crucial for both employers and employees.

Our comprehensive maternity insurance UAE plans provide extensive coverage for prenatal care, delivery, and postnatal expenses, ensuring a stress-free experience for expectant mothers. Additionally, our range of newborn child health insurance policies offer immediate medical protection for infants, covering essential vaccinations, emergency care, and routine checkups.

With a wide range of health insurance UAE options, we help businesses provide competitive employee benefits that promote workplace satisfaction and retention. Whether you're an employer looking to enhance your company’s benefits package or an individual seeking the best coverage for your family, Policyhouse offers tailored insurance solutions to meet your needs.