Saudi Arabia Introduces Insurance Policy to Protect Expat Workers

October 10, 2024 thehrobserver-hrobserver-indianexpat

Saudi Arabia’s Ministry of Human Resources and Social Development, in collaboration with the Insurance Authority, has introduced a wage insurance service to cover unpaid salaries for up to six months and provide travel assistance to expatriates in case of private sector defaults.

“The Expatriate Worker Wage Insurance Service for Private Sector Defaults is part of the ministry’s ongoing efforts to protect both workers and employers, while enhancing the overall efficiency and appeal of the Saudi labor market,” Abdulrahman Al-Zaid, director general of international communications and cooperation told Arab News.

The service compensated for unpaid wages, capped at SR17,500 ($4,661), as long as 80% or more of the employees in a defaulting company have not been paid. It also covers travel costs up to SR1,000 ($266) for expatriates wishing to return home.

The initiative is part of a broader effort by the ministry to create a “fair and secure work” environment, ensuring that private sector employees can claim compensation through designated insurance providers.

However, employers remain fully responsible for meeting wage obligations, and the ministry will continue to enforce strict penalties for non-compliance, Al-Zaid explained.

“The initiative is designed to create a more secure labor environment, making Saudi Arabia a leading hub for international talent,” he added.

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