Saudi Arabia Penalizes Employers For Failing To Provide Health Insurance
Category: Insurance

Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has imposed strict penalties on private sector employers who fail to provide mandatory health insurance to their employees and dependents.

Penalties for Non-Compliance

The Council of Health Insurance has taken action against several employers for violating Saudi Arabia’s health insurance system. The penalties aim to ensure that all employees and their families receive the legally mandated health coverage.

Fine Structure for Employers

  • Category A: Companies with 51 or more employees face fines up to SAR 20,000 per uninsured worker.
  • Category B: Companies with 11 to 50 employees may be fined up to SAR 5,000 per uninsured worker.
  • Category C: Small firms with 10 or fewer employees risk fines up to SAR 2,000 per uninsured worker.

Employers who continue to violate the regulations may also face temporary or permanent recruitment restrictions.

Government's Stance on Compliance

Iman Al Tariqi, the spokesperson for the Council of Health Insurance, emphasized the importance of compliance,

Implementation and Monitoring

The MHRSD, in collaboration with the Council of Health Insurance, has established an advanced electronic system to monitor and detect employees lacking health insurance coverage.

Currently, over 10 million individuals in Saudi Arabia are covered under health insurance policies, including both employees and their families.

For further details on health insurance compliance, visit the official MHRSD announcement.

 

 

22 Jan, 2025 0 758
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