Expat Wage Insurance Scheme in Saudi Arabia: All You Need to Know
If you’re an expatriate working in Saudi Arabia’s private sector, you’ll be glad to know about a new wage insurance scheme designed to protect you in case your employer faces financial issues. Launched by the Ministry of Human Resources and Social Development (HRSD) and the Insurance Authority, this initiative came into effect on October 6. It’s here to ensure that you can claim your unpaid wages if your employer defaults and even helps with your travel back home if needed.
Who’s Covered?
Most expatriate workers employed in companies with commercial registration are eligible for this wage insurance. You can check if you’re covered by visiting this link and entering your Iqama number.
However, some workers are not covered. These include:
- Workers in fully government-owned establishments
- Domestic workers and equivalent professions
- Temporary or seasonal workers
- Family members working solely in family-run establishments
- Athletes and their coaches
- Agricultural workers
- Non-Saudi workers on short-term tasks of less than two months
What Does the Insurance Cover?
Here are the benefits this insurance provides:
- Up to six months of unpaid wages (excluding end-of-service benefits)
- A travel ticket home for eligible workers, capped at SAR 1,000
- Maximum coverage of SAR 17,500 per worker
Who Pays for the Insurance?
The Saudi government funds the wage insurance, so there’s no extra cost for workers. The Ministry has partnered with an insurance company to manage compensation and claims.
Which Wages Are Covered?
This insurance covers your monthly wages, allowances, and other entitlements in your employment contract, except for end-of-service benefits.
Eligibility Criteria
To qualify, you need to meet these conditions:
- Your employer must have delayed wages for over six months
- At least 80% of the workforce must be affected
- The delay must occur within your insurance coverage period (12 months from the start date)
If you plan to leave Saudi Arabia, you can also qualify for a travel ticket under certain conditions, like having a final exit visa and not transferring to a new employer.
How to Claim Compensation
Here’s a step-by-step guide to claiming compensation:
- Ensure you’re covered under the insurance.
- Be registered with the defaulting employer and still employed.
- Provide proof of unpaid wages.
- Submit your claim through the designated insurance company.
- If claiming a travel ticket, include proof of your intention to leave (like a final exit visa).
You can access the claim form by visiting the HRSD website.
What Happens After a Claim?
Once you submit your claim, the employer gets notified and has 10 working days to contest it. If there’s no objection, the insurance company will disburse your compensation. After that, they may recover the costs from your employer.
FAQ
How do I know if I’m eligible for the Wage Insurance Service?
You can check your eligibility by entering your Iqama number on labor.aletihad.sa.
Does this insurance cover all expatriates?
No, certain categories like domestic workers and seasonal workers are exempt from the scheme.
What’s the maximum coverage I can receive?
The maximum coverage per worker is SAR 17,500.
This wage insurance scheme is a significant step toward safeguarding expatriate workers’ rights in Saudi Arabia. It’s good to know that the government has put measures in place to protect us from financial difficulties when employers fall short.
