Saudi Arabia is working to create ideal conditions for the employment of expats in the region. In particular, the country's leadership plans to introduce an insurance policy to protect the rights of foreign workers. Find out what risks the policy will cover

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The Ministry of Human Resources and Social Development of Saudi Arabia, in cooperation with the Insurance Authority, launched an insurance service for expats, which will cover losses in case of non-payment of wages by the employer for up to 6 months, and will also provide assistance to the foreigner in case of return home.

Insurance protection for employees came into effect on October 6, 2024.

What risks will an insurance policy for expats in Saudi Arabia cover?

According to the terms of the insurance policy, an expat can expect to receive compensation in case of non-payment of wages. In addition, affected workers can receive assistance in purchasing a ticket to return to the Motherland, if they accept this decision.

Insurance policy conditions for expats in Saudi Arabia

In the event that wages are not paid, this insurance service covers unpaid wages and entitlements for up to six months. The maximum amount of compensation is $4,661, provided that the combined rights of all employees do not exceed the general limit of insurance coverage for the company.

A prerequisite for obtaining a permit is the requirement that 80 percent or more of the facility's employees will not receive their wages or benefits, according to the ministry's regulations.

This initiative is part of the Saudi Ministry of Human Resources and Social Development's commitment to creating a fair and safe working environment for employers and employees.

Also, affected workers who wish to return to their homeland will be provided with a travel ticket with coverage up to $266. An employee is entitled to a return ticket to their home country if they wish to leave the country directly without transferring their services to another company and can provide proof of completion of all necessary procedures for departure, such as obtaining an exit visa and confirming travel bookings to their home country countries

In order to safely move, travel or work in a new country, you will need health insurance. You can issue an extended policy on our website using the link.

How to apply for an insurance policy for expats in Saudi Arabia?

Private sector workers who wish to apply for an insurance policy can submit claims through a designated insurance company responsible for handling compensation claims.

The Ministry will monitor the process to ensure compliance and smooth delivery of the service.

The introduction of this service does not relieve employers of their obligations, and they will continue to be fully responsible for meeting their wage obligations.

A system of fines has been developed for those employers who deliberately do not fulfill their obligations to employees.

Why did the leadership of Saudi Arabia introduce an insurance policy for expats?

The main goal of this initiative is to create a safer working environment and make Saudi Arabia an attractive destination for international talent.

Director General of International Relations and Cooperation Abdulrahman Al Zayed told Arab News: “The Foreign Workers' Salary Insurance Service in the event of default in the private sector has been developed as part of the ministry's ongoing efforts to protect both workers and employers. Also, such a law increases the overall efficiency and attractiveness of the Saudi Arabian labor market.”

The new wage insurance policy is a positive step forward. Such innovations indicate that the Ministry of Human Resources and Social Development is taking necessary measures to protect expatriates working in Saudi Arabia. This policy will not only provide financial assistance to employees affected by company defaults, but will also create a safer and more attractive environment for expatriates considering working in the Kingdom.

Approval of the initiative will enhance Saudi Arabia's reputation as a fair and competitive destination for international talent.

We will remind you! In recent years, Saudi Arabia has experienced rapid economic and social changes that are creating new opportunities for ambitious professionals. We have already told you what it takes to get a job here in 2024.