Health Insurance Is Now Mandatory for Saudi Temporary Work Visas A Guide for Employers Using EOR Services

Working with an experienced EOR like Tarmack ensures compliance, seamless onboarding, and timely visa processing.

Hiring talent in Saudi Arabia now comes with an important compliance update. Health insurance must be secured before a Temporary Work Visa (TWS) can be issued for foreign employees. This marks a change from the previous process and directly affects how international hires are onboarded, especially for employers using an Employer of Record (EOR).

For EOR-based hiring, insurance is no longer arranged after visa approval—it is now a mandatory prerequisite. Ensuring your EOR manages this requirement correctly helps avoid delays and keeps your team compliant.

Temporary Work Visas in Simple Terms

The Temporary Work Visa (TWS) allows foreign nationals to work in Saudi Arabia for a limited period, typically for short-term or project-based assignments. It is employer-sponsored, meaning the hiring company or its EOR must initiate the application.

Two government bodies are involved:

• Ministry of Human Resources and Social Development (MHRSD) – oversees labor authorization
• Ministry of Foreign Affairs (MOFA) – issues the visa through embassies or consulates

Previously, the process was:

• Apply for the TWS
• Receive visa authorization
• Arrange health insurance
• Employee enters Saudi Arabia

Now, health insurance must be arranged before the visa is issued.

What Has Changed

Under the new rules:

• Employees must have valid health insurance before the temporary work visa is issued
• Insurance must come from a CCHI-approved provider
• The policy must be linked to the employee’s passport and employment contract
• Missing or incorrect information can delay visa approval

Before vs. After: A Quick Comparison

Previously

• Health insurance could be arranged after visa approval
• Timing of insurance had minimal impact on visa issuance
• Employers had flexibility late in the onboarding process

Now

• Health insurance is required before visa issuance
• Only CCHI-approved insurers are accepted
• Insurance must match passport and contract details
• Delays in insurance setup can stall the visa

Why This Matters for Employers Using an EOR

For employers using an EOR like Tarmack, early coordination and accurate documentation are critical. As the legal employer in Saudi Arabia, the EOR now must:

• Secure compliant health insurance
• Align employment contracts with visa requirements
• Coordinate with CCHI-approved insurers
• Submit insurance data to local authorities

Failure to comply can delay visa issuance and impact project timelines, start dates, and workforce planning.

Impact on Remote and International Teams

This requirement applies even if:

• The employee is currently outside Saudi Arabia
• The role is project-based or short-term
• The hire is part of a distributed or remote team

For employers, this means:

• Collect passport details earlier
• Finalize employment terms sooner
• Plan onboarding timelines carefully

What Employers Should Expect From Their EOR

Your EOR should be able to:

• Proactively inform you about insurance requirements
• Secure insurance from CCHI-approved providers
• Link insurance to the employee’s passport and contract
• Integrate insurance timelines into the visa application
• Minimize disruption to employee start dates

If your EOR is not aligned with these steps, visa delays or compliance issues are likely.

How Tarmack Supports Employers Through This Change

As an EOR provider in Saudi Arabia, Tarmack manages this requirement as part of a full compliance and onboarding workflow. By integrating health insurance early, we help ensure:

• Visa applications move forward without delays
• Employees are covered from day one
• Employers remain fully compliant with Saudi regulations

This allows companies to focus on building their teams while we manage the regulatory complexity.

What Is CCHI?

The Council of Cooperative Health Insurance (CCHI) is the Saudi government body that regulates health insurance. Its role:

• Approve insurance providers – only CCHI-approved insurers can cover employees on work visas
• Set minimum coverage standards – including medical care, hospital services, and emergencies
• Link insurance to visas – insurance must be registered with CCHI and tied to the employee’s passport and contract

Final Thoughts

Saudi Arabia’s new health insurance requirement for temporary work visas is a procedural change with real operational impact. Employers using an EOR must plan earlier, coordinate closely, and ensure health insurance is handled upfront to maintain compliance and avoid delays.

Need Support Navigating These Changes?

Regulatory updates like this highlight the importance of working with an experienced local partner. Tarmack provides Employer of Record Services in Saudi Arabia, supporting employers with:

• Compliant hiring
• Visa coordination
• Health insurance setup
• Ongoing workforce management

Our team stays aligned with local regulations so you can focus on growing your team while we manage the complexity.

Get in touch to understand how this change affects your current or future hires.