The Ministry of Human Resources and Social Development, in collaboration with the Insurance Authority, launched the "Insurance Product" to safeguard the rights of expatriate workers in the Kingdom. This initiative will take effect on Sunday, Oct. 6, 2024, and is designed to alleviate financial burdens resulting from employer default.
Overview of the Insurance Scheme
The new insurance scheme covers expatriate workers' dues if their employers in private sector establishments fail to meet wage payment obligations. Additionally, the scheme offers benefits such as a return travel ticket for workers opting for a final exit, providing financial security and protection for expatriates working in Saudi Arabia.
Coverage and Benefits for Expatriate Workers
The "Insurance Product" will be implemented by insurance companies operating in the Kingdom, covering wage defaults and other contractual obligations as outlined in the insurance policy. These benefits include critical support such as:
- Payment of overdue wages due to employer default.
- Final exit travel tickets for expatriates wishing to return to their home countries.
This initiative reflects the Kingdom’s commitment to creating a more attractive and efficient labor market, both locally and internationally.
Compliance with Labor Market Policies
This insurance scheme is part of Saudi Arabia’s broader efforts to enhance the efficiency and appeal of its labor market. It complements the Ministry's ongoing reforms, such as the Wage Protection Law and contract documentation processes, which aim to preserve the contractual rights of both employers and workers.
Accessing the Insurance Guide
The Ministry of Human Resources and Social Development has published a detailed guide explaining the procedures and benefits of the insurance product. The guide can be accessed on the ministry's website for further information.
Additional Resources
To learn more about labor market updates and other policies, visit Labor Market Updates.
