Saudi Arabia launches insurance for expat dues

Logo of Ministry of Human Resources and Social Development

Saudi Arabia’s Ministry of Human Resources and Social Development (HRSD), in cooperation with the Insurance Authority (AI), launched an insurance product to cover the dues of expatriate workers employed in private sector firms facing financial difficulties.

The initiative aims to protect workers and mitigate the impact of not receiving their financial rights in the event that companies are unable to meet payroll obligations for a specified period.

Coverage for expatriate workers included in the insurance product will begin on Oct. 6, 2024, according to a statement from the ministry.

The ministry explained that the insurance product, offered through insurance companies in the Kingdom, covers the payment of expatriate workers' dues in the event their employers fail to meet payroll obligations. This coverage is provided according to the terms and benefits outlined in the insurance policy, as governed by the relevant regulations and procedures.

These benefits include a return flight ticket for expatriate workers who wish to return to their home country, the ministry added.

This initiative supports the development of the labor market by safeguarding contractual rights between workers and employers, improving the market's appeal and efficiency locally and globally.

It also aligns with other measures, like the wage protection system and contract documentation, to protect both parties' rights in labor relations.