Social Security: Regulations for occupational hazard coverage for those sent abroad

As part of its ongoing efforts to clarify the insurance rights and obligations of the parties to the contractual relationship, the General Organization for Social Insurance in the Kingdom of Saudi Arabia has revealed the regulatory controls related to the “occupational hazards” subscription for employees who are sent on work assignments outside the Kingdom, or who are sent on scholarships for study.

Regulations for occupational hazard coverage for those sent abroad

The Authority explained that a subscriber subject to the social insurance system in the occupational hazards branch, who is sent on an official mission outside the Kingdom on behalf of the employer, or who is granted study leave outside the country, will have a change in his insurance status in this branch specifically.

The institution clarified that subscriptions to the occupational hazards branch are suspended for this category, exempting the employer from paying the prescribed subscription rate of (2%), effective from the first day of the month following the subscriber's departure date. This suspension continues until the employee's return, at which point the payment obligation resumes from the first day of the month the subscriber returns to the Kingdom.

Exceptions to the decision to suspend subscription

The Social Security Administration indicated that there are specific categories exempt from the suspension of subscriptions, due to the nature of their work which requires constant movement, namely:

• Saudi flight crews: They continue to be subject to the occupational hazards branch while on board aircraft or during their travel from airports to their places of residence and vice versa in the countries to which their flights arrive.
• Crews of land and sea transport: This includes those working on international trips outside the Kingdom, where insurance coverage remains valid during the trip and while moving between arrival stations and places of residence abroad.

Optional subscription system: An additional layer of protection

In a related context, and to broaden the social safety net, the Saudi social insurance system allows for "voluntary participation" in the pensions branch for a number of categories not subject to mandatory enrollment. This system aims to ensure a secure financial future for citizens who are self-employed or working abroad.

The categories eligible for optional subscription include:

• Self-employed professionals who have obtained practice licenses from the competent authorities.
• Self-employed craftsmen (such as carpenters, blacksmiths, plumbers) under official licenses.
• Saudis working outside the Kingdom who do not have an employment relationship with an employer headquartered within the Kingdom.
• Saudis working in foreign international, political, or military missions within the Kingdom who are not subject to the system compulsorily.
• Subscribers whose mandatory subscription has stopped and who wish to continue their insurance coverage in the pensions branch to complete the periods qualifying for retirement.

The importance of insurance regulation and labor market stability

These clarifications are part of the pivotal role played by the General Organization for Social Insurance in promoting job and social stability in the Kingdom. By precisely defining employers' financial responsibilities towards employees sent abroad, the organization contributes to reducing unnecessary financial burdens on establishments, while preserving workers' rights in cases requiring continuous coverage, such as transportation crews.

The occupational hazards branch is one of the main pillars of the protection system, as it specializes in providing medical care and financial compensation in cases of work injuries and occupational diseases, reflecting the Kingdom’s keenness to provide a safe and stable work environment that conforms to international standards and supports the objectives of the Kingdom’s Vision 2030 in developing the labor market.