Saudi Arabia’s New Health Insurance Rule for Work Visas in 2025

Introduction

The Kingdom of Saudi Arabia has markedly changed its foreign labour policy by introducing a new rule that mandates the foreign nationals to obtain health insurance in order to be issued with a temporary work visa. The change is a break to the old process when it was acceptable to get the insurance once the visa is approved. The policy is likely to make the workers more protected, simplify the system of employer-compliance areas and mirror the overall push of the Kingdom towards labour reform and modernisation of its regulatory framework.

The New Rule: Key Features

The new regulation assumes the following key changes, according to the published sources:

• The health insurance policy should be acquired before the issuance of temporary work visa and not afterward.

• The sponsoring employer should offer the insurance through the registered insurance company which is a plan approved by the Council of Cooperative Health Insurance (CCHI). In the past, any provider was acceptable in the Enjaz visa-platform.

• The worker needs to provide the insurance company with a copy of his/her passport and temporary employment agreement to the CCHI thus carrying the policy with the passport history. This was a prerequisite that was not in the previous policy.

• The regulation is effective to all employers who sponsor foreign employees on temporary work visas.

These characteristics are more organized and forced health coverage on migrant employees in the temporary labor system in Saudi Arabia.

Also Read: Saudi Arabia Work Visa Check by Passport Number

Why Saudi Arabia Took This Step

Strengthening Worker Protection

This shift can be considered as a part of the general efforts of the Kingdom to promote the rights and protections of foreign employees. Saudi Arabia will guarantee that migrants have health insurance coverage even before visa is issued, so that they do not find themselves without a medical cover vulnerable to medical problems.

Improving Regulatory Compliance & Transparency

Connecting the insurance policy with the workers passport and providing the insurer to report to CCHI will provide a better chance of tracing coverage, reduce cases where gaps exist and also increased monitoring of insured workers and by whom. This will be a move towards regulating uncontrolled insurance schemes and making employers responsible.

Aligning with Broader Labour Reforms

It is a national agenda of Saudi Arabia to modernise labour-market regulation and has included in recent years reforms in employment contracts, digital verification and even the abolishment of aspects of the traditional migrant-sponsorship system (the so called Kafala system). This insurance requirement is an extension of such reforms, which makes the migrant-worker regime even more modernised. 

Implications for Employers and Foreign Workers

For Employers and Sponsors

• The employers who sponsor foreign workers are now under obligation to make the insurance in place during the visa application.

• They have to choose an insurance company which is registered and approved by the CCHI - the providers are even more limited than before.

• They should also create the option of forwarding worker passport information and employment contract to the insurer/ CCHI and it will take a bit of an administrative undertaking.

• The failure to comply can result in visa stalling or refusal which obstructs workforce planning and operations.
  
  

For Foreign Workers

• Employees that come in on temporary work visa will henceforth receive insurance cover immediately, eliminating their exposure to medical risks and the expense they would incur due to illnesses.

• Formal protection can be improved by connecting insurance to the passport and coverage status can be more easily tracked.

• Nevertheless, it can also be interpreted as additional documentation or verification procedures at the time of issuing a visa, which employees must know.

For Recruitment Agencies and Service Providers

• Visa processing agencies will have to revise their processes and policies to accommodate this precondition of insurance.

• They might be required to counsel the clients (both the employers and the workers) on issues of choosing the appropriate provider and submitting documentation at the right time.

• This change can minimize errors in which visa application was done, but insurance coverage was not made.

Also Read: Saudi Arabia Launches Voluntary Pension Program for Foreign Workers

Benefits and Challenges

Benefits

• Improved Coverage: The chances of workers coming to the country without insurance or having coverage problems are reduced.

• Risk Reduction: Employers/states have few risks of uncovered medical incidents in foreign workers.

• Regulatory Transparency: The connection with the passport and the employment contract enhances transparency and accountability.

• Credibility of Labour Market: The reforms will make Saudi Arabia look more structured and modern as a destination of foreign talent.

Challenges

• Administrative Workload: Employers and insurance companies need to deal with additional procedures and the transfer of data (copy of the passport, contract) that can delay the processes.

• Cost Implications: Higher initial costs may be faced by workers or employers depending on the insurance premium.

• Problems with Implementation: It might take some time to make sure that all the stakeholders are informed and the systems updated (insurance providers, visa platforms, sponsors).

• Suspected Delays: The issuance of visas may be delayed should the insurance providers lack readiness or the records be incomplete, which will lead to the delay in deploying the workforce.

What This Means for Indian Workers and Other Nationals

This rule is especially applicable as a large number of Indian nationals and South Asian workers accept employment in Saudi Arabia. Past advice on Indian workers had already indicated that health insurance was required on the visa. With the new rule:

• Indian applicants are required to make sure that the employer-sponsors have arranged the relevant insurance provider and provided the relevant documentation well in advance of submitting the visa.

• About this change, the recruitment agencies in India and Saudi Arabia ought to educate candidates in advance, so that there are no surprises or delays.

• Employees are supposed to ensure that the insurance policy is actually attached to their passport and contract, and they are supposed to have documentary evidence of being covered.

• Practically, this new regulation can help to strengthen the procedure of Indian and other foreign workers being deployed to Saudi Arabia, yet it can also be seen as being more organised to some extent.

Broader Context: Saudi Arabia’s Labour Reforms and Migrant Worker Policy

Reform of the Kafala System

In the beginning of this year, Saudi Arabia officially repealed or placed major curbs on the traditional Kafala system that had linked the residency of migrant workers and their employment position to their employer sponsors, which created a high possibility of exploitation. The health-insurance mandate is another ingredient in the modernisation of labour regulation and the safeguarding of foreign workers in the Kingdom.

Contract and Verification Digitalisation

The Saudi officials have brought in tougher regulations on employment contracts and online checks. An example of this is that all employment contracts are now to be registered on various platforms and provide an elaborate schedule of payment of salary and addresses, focusing on transparency. 

Vision 2030 and Workforce Strategy

Saudi Arabia is pursuing the need to diversify its economy, modernise the labour market, and improve standards of living and service delivery in the Kingdom as part of the wider agenda of Vision 2030. This vision should be accompanied by worker protection and labour-market reform due to a significant proportion of foreign workers in the country.

Steps for Stakeholders to Follow

• Employers/Sponsors: ensure that the insurance company is CCHI-approved, and they can attach the policy to the passport and the contract of the worker. Make sure that the timing is in line with the visa submission.

• Insurance Providers: Have their systems ready to accept passport and contract information and are formally registered with CCHI to that effect.

• Recruitment Agencies: Modify the guidance notes, checklists and workflows to include the insurance-before-visa requirement and watch out against possible delay.

• Foreign Workers: Request a copy of the evidence that the insurance is present, ensure that it is associated with your passport/contract and hold a copy of the policy.

• Consulates / Embassies: May require lifting up visa instructions booklets and applicant checklists to reflect this shift to make potential employees aware.

• Human Rights/Workers Organisations: The implementation is to be monitored so that the rule is not used to impede legal employment either without the intention to do so.

Also Read: Saudi Arabia Announces Month-Long Grace Period Extension: Visa Overstay

Potential Impact on Labour Mobility & Migration Trends

The policy can affect labour mobility in a number of ways:

• It can make Saudi Arabia a more secure destination by increasing the entry criteria for workers.

• On the other hand, the heightened documentation requirements will potentially slow down the process of issuing visas that can trickle down to programmes, which are dependent on the rapid deployment of workers.

• It can encourage other countries that receive labour in the Gulf or elsewhere to follow suit with a similar requirement of health insurance in lieu of work visas and set the standard of migrant labour protection high worldwide.

• To sending countries (including India, Pakistan, Philippines), it offers a good indication that host countries are moving towards more formal, regulated labour-migration schemes instead of exploitative ones.

Conclusion

The introduction of the new rule by the Kingdom of Saudi Arabia that requires health insurance before temporary work visas are issued is a significant move in its current reform of the labour market. Connecting insurance with the passport of the worker and his working contract and insisting on pre-visa insurance with the approved companies, Saudi Arabia is evolving protective measures of the foreign employees and adds to the clarity of the regulations both to the employer and the insurers. 

Although the policy places additional administrative burdens on the policy, its possible advantages, both regarding the welfare of workers, employer responsibility and labour-market integrity, are high. Early planning and adherence will be central to effectively tapping the change to the advantage of both the workers and sponsors. As this reform takes root, it could become a model for other migration-receiving countries and help achieve safer and more equal labour mobility in the world.

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