Expat Workers in Saudi Arabia to Get Wage Protection Insurance

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The Ministry of Human Resources and Social Development in Saudi Arabia, in collaboration with the Insurance Authority, has introduced a new insurance product aimed at protecting the rights of foreign workers in the private sector facing employer financial difficulties, Wego reports.

This insurance initiative is designed to cover the financial entitlements of expatriate workers employed by private sector companies that may be at risk of insolvency. Coverage includes unpaid wages, severance pay, and other forms of compensation, thereby addressing essential issues related to worker welfare and fostering a more secure working environment within the Kingdom.

Under this coverage plan, a worker can receive a maximum compensation of up to 18,500 Saudi Riyals. An additional 17,500 Saudi Riyals is allocated for salaries and benefits, along with 1,000 Riyals designated for a return ticket to the worker’s home country, if necessary. The insurance specifically targets non-Saudi employees, particularly those in sectors identified by the Ministry of Human Resources and Social Development.

Eligible beneficiaries will be automatically identified and covered by the Ministry, which will also notify both employees and employers regarding the issuance of coverage documentation and the claims process. This program is anticipated to significantly enhance labor market stability and protect the rights of foreign workers amid Saudi Arabia’s evolving economic landscape.

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