Saturday, November 8, 2025
Saudi Arabia’s MHRSD Settles SR15 Million in Unpaid Wages for 50 Workers
The Ministry of Human Resources and Social Development (MHRSD) announced that it has paid more than SR15 million owed to 50 private sector workers by their employers during September.
This payment is part of an initiative launched by the ministry to settle the financial rights of employees working in companies facing financial difficulties or bankruptcy proceedings. Read: Saudi Jawazat to launch new Self-deporation platform
Initiative to Protect Workers’ Rights and Stabilize the Labor Market
The Saudi labor market will be more stable, workers' rights will be better protected, and the impact of financial crises will be lessened through this effort, which is overseen by the Labor Affairs Agency.
To support this goal, the MHRSD, in cooperation with the General Organization for Social Insurance (GOSI), introduced an insurance product that covers the dues of expatriate workers employed in private sector establishments experiencing financial hardship.
This product helps ensure that expatriate workers receive their wages and entitlements, even if their companies are unable to pay for a certain period.
Details of the Insurance Product
Only Saudi Arabian insurance companies with the proper licenses can sell this policy. The insurance policy's terms and benefits guarantee that expat workers will be financially protected if their employers can't pay their salary.
Among the benefits is the provision of a travel ticket for any expatriate worker who wishes to return to their home country. Most Viewed: Saudi police arrests 3 expats including 2 women on charges of prostitution
Supporting Labor Market Development and Contractual Rights
The launch of this insurance product is part of the government’s broader plan to develop the labor market through new laws and policies, protect contractual rights between employers and employees, and make the Saudi labor market more efficient and attractive locally and internationally.
To ensure both employers and workers are legally protected, the insurance system supports extra rules from the Ministry, like the Wage Protection Law and rules about contract documents.
Workers’ Eligibility and Ticket Compensation
Workers are not required to leave Saudi Arabia to receive compensation. If a worker’s services are transferred to another establishment, they can still receive their payments.
The insurance will also cover the cost of a return ticket to the worker’s home country, with a maximum value of SR1,000 in economy class. To qualify, the worker must provide proof of completing all departure procedures, including obtaining a final exit visa.
The ticket reimbursement will not exceed SR1,000.
Workers and Establishments Excluded from Coverage
The decision excludes the following categories:
➤ Wholly state-owned establishments
➤ Probationary workers
➤ Domestic workers
➤ Seasonal and temporary workers
➤ Family members of the employer
➤ Sports club players
➤ Agricultural workers and shepherds
➤ Workers hired for a specific task
Furthermore, workers employed by struggling companies before the insurance product was implemented are not covered. Recommend: Saudi Arabia enforces strict travel rules for controlled medications
Conditions to Receive Insurance Compensation
The MHRSD set five main conditions for expatriate workers to qualify for compensation:
1. They must not be among the excluded categories listed above.
2. They must be registered in the records of the struggling company during the claim period and have active employment status.
3. They must submit a legal document proving that they have not received their dues from their employer.
4. They must not receive compensation more than once per year from the insurance product.
5. They must provide proof of their intent to leave the Kingdom when requesting travel ticket compensation.
Employer Notification and Objection Process
When an expatriate worker files a compensation claim, the employer will be officially notified through the ministry’s communication channels.
The employer then has 10 working days to submit an objection. If the employer does not object within this period, the eligible workers will be compensated.
The insurance company can recover the amount it paid to the workers from the employer or establishment that failed to meet its obligations.
Summary
Through this initiative, the MHRSD is taking strong steps to protect worker rights, ensure fair treatment for expatriates, and maintain labor market stability in Saudi Arabia. The ministry’s cooperation with GOSI and the launch of insurance-backed compensation reinforce the Kingdom’s commitment to a transparent, fair, and efficient labor environment. See Also: Insurance Product to cover expat worker dues if company goes bankrupt
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| Saudi Arabia’s MHRSD Settles SR15 Million in Unpaid Wages for 50 Workers |
