How to file a wage insurance compensation claim
When an establishment is verified as defaulting by MHRSD, claims are processed through designated electronic labor channels:
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Step 1: Verify your contract on Qiwa
Ensure your official employment contract is active and digitally authenticated on the Qiwa platform, reflecting your correct basic wage.
- 2
Step 2: Confirm WPS default status
Check that your employer's wage protection compliance status shows continuous non-compliance exceeding 180 days.
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Step 3: Submit the official claim form
Access the MHRSD designated compensation portal or friendly settlement window, attaching your bank account IBAN, contract copy, and proof of last wage received.
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Step 4: Select transfer or final exit
Declare whether you are transferring to a new employer via Qiwa or applying for a final exit repatriation ticket.
How the wage insurance safety net works
Delayed or unpaid wages represent one of the most stressful challenges an expatriate worker can face. To safeguard the financial rights of non-Saudi employees and curb vulnerabilities caused by private-sector company insolvencies, the Ministry of Human Resources and Social Development (MHRSD), in partnership with the Insurance Authority, launched the Expatriate Worker Wage Insurance Service for Private Sector Defaults.
Unlike standard labor litigation that can drag on for months through judicial courts while an insolvent employer lacks liquid assets, this insurance policy provides an immediate liquidity backstop. It disburses financial entitlements directly to verified workers, ensuring they are not left destitute or stranded without means to support themselves or travel home.
When an establishment is officially declared defaulting
The insurance coverage does not trigger for isolated, short-term delays between an individual worker and a solvent employer. Instead, MHRSD defines a specific statutory threshold for a defaulting establishment.
An enterprise is officially designated as defaulting under this scheme when it fails to disburse wages to 80% or more of its total registered workforce for a continuous period of 180 days (six full months). This compliance failure is detected automatically through electronic monitoring across the MHRSD Wage Protection System (WPS) and banking clearinghouses.
What the insurance covers and maximum financial caps
Eligible expatriate workers can claim financial recovery within statutory ceilings established by the Insurance Authority:
Unpaid Wages: The policy covers up to six months of documented basic wages and allowances owed by the defaulting company, up to an absolute ceiling of SAR 17,500 per worker.
Repatriation Travel Ticket: If the employee decides to conclude their stay in the Kingdom rather than look for a new sponsor, the policy provides a one-way flight ticket back to their home country, capped at SAR 1,000.
Ceiling Distribution: If the aggregate claims of all workers in a bankrupt company exceed the overall insurance policy coverage ceiling for that establishment, the compensation fund is distributed among eligible claimants on a proportional basis.
Worker eligibility criteria and exempt categories
To qualify for a payout, an expatriate worker must hold a legally documented contract under a private-sector establishment subject to MHRSD oversight and have experienced an uninterrupted wage disruption of at least 180 days.
The scheme specifically excludes the following categories: domestic workers (covered under separate domestic labor rules), employees of government-owned entities, seasonal and temporary workers on contracts under two months, immediate family members of the business owner, agricultural farmhands, and professional athletes or coaches.
Important checks before finalizing your settlement
Receiving an insurance settlement does not strip you of the right to pursue additional claims in the Labor Court if your total gratuity or unpaid dues exceed the SAR 17,500 insurance maximum.
However, workers must sign an undertaking confirming they will not file duplicate claims for amounts already compensated by the insurer. Keep copies of all settlement statements and bank deposit confirmations for your records.