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Gulf Saudi

Saudi Arabia launches new insurance scheme to protect expatriate workers' rights and cover unpaid wages

It offers wage protection for expatriates, including return travel



The scheme, which took effect on October 6, aims to reduce the financial burden on workers in cases where their employers default on wage payments. Illustrative image.
Image Credit: Gulf News Archives

Dubai: The Ministry of Human Resources and Social Development, in partnership with the Insurance Authority, has introduced a new insurance scheme, “Insurance Product,” designed to protect the rights of expatriate workers in Saudi Arabia.

The scheme, which took effect on October 6, aims to reduce the financial burden on workers in cases where their employers default on wage payments.

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The Insurance Product covers unpaid wages and other dues for expatriate workers employed by private sector establishments.

Should employers be unable to meet wage obligations, insurance companies will provide compensation based on the terms and benefits outlined in the insurance policy.

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Among these benefits is the provision of a travel ticket for expatriate workers who wish to return to their home countries.

The initiative aligns with Saudi Arabia’s ongoing efforts to develop its labour market by enhancing the rights of both workers and employers. It complements existing measures such as the Wage Protection Law and contract documentation requirements.

The ministry has issued a comprehensive guide detailing the procedures associated with the Insurance Product, which is available on its website.

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