Employers in Saudi Arabia must now provide health insurance to their employees. The decision, implemented by the Council of Cooperative Health Insurance and the Ministry of Labor and Social Development, is set to improve health insurance standards within the country.
The policy will be implemented in four phases, the first of which began earlier this month. Employers must now sign a health insurance contract which will cover not only employees but also their family. The regulations include all residents of Saudi Arabia, including expats working in the country.
These new regulations will be monitored by teams from the CCHI and will aim to ensure that employers are adhering to new labor laws and regulations. If employers do not follow the laws, penalties will include being banned from recruiting new employees either permanently or until subsequent fines have been paid. Employer’s will be monitored digitally to make sure the rules are followed.