The Saudi government has taken serious measures to ensure expats are getting their rights and benefiting from welfare programs. One such measure is salary insurance, a policy that seeks to protect the employee’s salary if the employer has financial troubles or fails to make the necessary payments. Read this knowledge guide to learn all about expat worker salary insurance.
What does the Expat Salary Insurance Cover?
This policy provides wages for expatriate employees in case their employer has failed to remit their wages.
What Benefits Will Employees Get from Salary Insurance?
The HRSD ministry has stipulated the terms for expat worker salary insurance, according to which they will get;
- 6-month due salary by the employer. The maximum coverage limit is SR 17,500.
- A return ticket to the homeland if the employee wants a final exit. The maximum limit for ticket expense coverage is SR 1000.
Note that the insurance does not cover the “end-of-service benefits.”
What is the Expat Salary Insurance Cost?
Employers are required to provide a premium paid in advance for each expatriate worker. The amount can be different depending on other factors, including the total number of expatriates used by the firm or the type of insurance cover used. The premium amount is intended to support the expatriate without expecting any costs to be incurred by the workers concerned.
Apparently, the ministry bears the cost of insurance services. The employee and employer do not have to pay any additional fee.
How to Check if You Are Covered?
- Click https://labor.aletihad.sa/
- Enter your Iqama number.
The system will prompt you if you are covered in the registered or not.
Documents Needed to Apply for Compensation
- Evidence of last salary received.
- Copy of Iqama
- Copy of Employment Contract (Qiwa Contract)
- If the employer requests compensation for travel, he/she must submit a copy of the final exit visa.
- Copy of lawsuit against defaulter employer, if any.
Applying for Compensation: Steps and Procedures
If you are covered, the following are the steps to apply for salary compensation if your employer has failed to pay your wages.
- Collect Documentation: To qualify for an unpaid wages claim, you must produce your employment contract, pay slips, and any documentation indicating unpaid wages.
- Report the Issue to MHRSD: Contact the Ministry or visit their office or website to report the payment problem. They will advise you on the paperwork that needs to be filled out and authenticate your case.
- Submit a Formal Claim: When the ministry is satisfied that your employer cannot afford to pay, they will assist you in lodging a claim with the insurance firm that will allocate you your salary.
- Await Compensation: After the insurance company’s approval, the insurance company will compensate for claimed but unpaid wages as per the policy terms.
This is the intention of MHRSD, but due to different circumstances and, in particular, the nature of each specific case, it is likely to take some time.
Important Links and Contacts
For the latest updates and information, check these official resources:
Ministry of Human Resources and Social Development: Visit the MHRSD official website for more information regarding workers’ protection, salary insurance, and grievances.
Absher Portal: This is another site that expatriates in KSA can use to verify their employment status and other information.
For issues of direct concern or support, you can call MHRSD at their operational telephone number, 19911.
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