RIYADH. Saudi Arabia has taken a significant step towards protecting expatriate workers with the introduction of a new wage insurance service. Launched by the Ministry of Human Resources and Social Development and the Insurance Authority, this initiative aims to cover unpaid wages for up to six months and provide travel assistance for expatriates in cases of private sector defaults. The insurance cover, which began on October 6, 2024, is part of the Kingdom’s efforts to enhance the efficiency and appeal of its labor market.
The new policy offers substantial protection for expatriate workers, with a maximum compensation payout of SR17,500 for unpaid wages and entitlements. This payout is contingent on 80 percent or more of the workers in an establishment not receiving their wages or entitlements, as per ministry regulations. Additionally, affected workers wishing to return to their home countries will be provided with a travel ticket, with coverage up to SR1,000.
Abdulrahman Al-Zaid, Director General of International Communications and Cooperation, emphasized that this initiative is designed to create a more secure labor environment, positioning Saudi Arabia as a leading hub for international talent. The insurance policy is part of a broader package of measures introduced by the ministry to safeguard the rights of both employers and employees. Importantly, the introduction of this service does not absolve employers of their responsibilities, and the ministry will continue to enforce strict measures, including penalties for employers who deliberately fail to meet their obligations.
The new wage insurance policy has been well-received by expatriates in Saudi Arabia as a positive step forward. It will not only provide financial relief to workers impacted by company defaults but also create a more secure and attractive environment for expatriates considering working in the Kingdom. This initiative will enhance Saudi Arabia’s reputation as a fair and competitive destination for international talent.
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