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How to Calculate Work Injury Compensation

Work injury compensation is a legal right that ensures an employee receives medical and financial compensation if they are injured because of work or while performing their job duties.

Under the Saudi Social Insurance Law and Saudi Labor Law, compensation is provided based on the type of injury sustained by the employee and the extent to which it affects their ability to work. It also covers treatment expenses and the period during which the employee is unable to work. In this article, we explain how work injury compensation is calculated, as well as the procedures and conditions for claiming it.

Definition of a Work Injury Under Saudi Labor Law

A work injury is any physical or psychological harm suffered by an employee as a result of working conditions or while performing their job duties. This includes accidents that occur while carrying out work and occupational diseases caused by the work environment or the nature of the job.

According to Article 30 of the Social Insurance Law, the employer must bear the costs of treating the injured employee and compensate them according to the severity and type of injury. This includes medical expenses and lost wages. The affected employee is entitled to submit a compensation claim in accordance with the procedures regulated by the competent authorities, such as the Ministry of Human Resources and Social Insurance.

To understand the legal framework governing employee rights and compensation arising from work injuries, it is important to learn about: Saudi Labor Office Law, so that you are aware of the rights and obligations governing the relationship between employees and employers.

How to Calculate Work Injury Compensation

The process of calculating work injury compensation begins with an official medical report issued by an accredited competent authority. The medical team carefully assesses the injured employee’s condition and determines whether the health condition requires short-term or long-term treatment. A report is then issued explaining the nature of the employee’s injury and the extent to which it affects their ability to perform their job.

The report is then submitted to Social Insurance so that it can be used to determine the amount of compensation, taking into account the average basic wage received by the employee during the three months preceding the injury. This is linked to the disability percentage stated in the medical report in order to determine the amount of financial compensation due.

The disability percentage is determined by a specialized medical committee, which assesses the degree of disability resulting from the injury and the extent to which it affects the employee’s ability to work. Based on this percentage, the compensation amount is calculated, whether for partial or total disability, in accordance with the schedule approved under the Social Insurance Law.

For example, if the medical report states that the disability percentage is 30%, compensation is calculated at 30% of the compensation amount allocated for permanent total disability.

Work injury cases are among the most prominent: types of labor cases that may arise between an employee and an employer when there is a dispute over compensation, proof of the injury, or statutory entitlements.

Procedures for Claiming Work Injury Compensation

There are certain legal steps that should be followed in order to obtain work injury compensation, including:

If the employer refuses to compensate the employee or the injury is not recognized despite the existence of evidence and medical reports, you may need to learn about: how to file a lawsuit against a company, so that you can formally begin claiming your rights before the competent authority.

Conditions for Obtaining Work Injury Compensation

There are several essential conditions that must be met in order to obtain work injury compensation. The most important of these conditions include:

The injury sustained by the employee while performing their work must be registered with the relevant authorities, such as Social Insurance or the Ministry of Human Resources and Social Development.

The employee must obtain a medical report explaining their health condition and the effect of the injury on it. This report is submitted as part of the evidence presented to the committee, which strengthens the employee’s legal position in the case.

The employer must be informed of the employee’s injury within 24 hours from the time it occurs, whether the report is made by the employee or their legal representative, because this period is necessary to establish the occurrence of the incident.

If a dispute arises between the employee and employer regarding proof of the injury or the amount of compensation, amicable settlement of labor disputes may be an important step before resorting to litigation, in an attempt to resolve the dispute through a lawful process that preserves the rights of both parties.

How Can Nawaf Bin Awad Al-Harbi Law Firm Help You with Work Injury Compensation Cases?

The team at Nawaf Bin Awad Al-Harbi Law Firm includes lawyers who specialize in work injury compensation cases under Saudi Labor Law and the Social Insurance Law. They have extensive experience in this field, giving clients confidence that every step is handled within the correct legal framework and with full consideration of their rights.

They are committed to supporting clients from the very beginning until the case is completed in an organized and straightforward manner. They begin by formally documenting the injury and supporting it with the necessary medical reports, then prepare and draft the legal claims accurately in accordance with the details of the case.

Their support also includes gathering the required documents and ensuring that they comply with the requirements of the competent authorities. Where necessary, the firm’s team also provides direct legal representation before the competent authorities to protect the client’s rights.

Contact — the best labor lawyer — today for specialized legal advice regarding work injury compensation, with assistance in proving your rights, reviewing documents and medical reports, following up on compensation claim procedures, and representing you before the competent authorities to help ensure that you receive your entitlements under Saudi Labor Law and Social Insurance Law.

Conclusion

In this article, we have explained how work injury compensation is calculated, the procedures and conditions required to obtain compensation, and how our firm can assist you in obtaining the compensation due. A specialized lawyer is familiar with these matters and with the time limit within which a compensation claim must be filed, helping ensure that the procedures proceed within the correct legal framework and that your rights are fully protected.

Frequently Asked Questions

How Long Do You Have to Report a Work Injury?

The injured employee or a member of their family must inform the employer that the employee sustained an injury while performing work within 5 days from the date of the injury, the discovery of the illness, or the occurrence of a relapse.

How Much Is Work Injury Compensation?

The disability percentage is the main factor in determining the amount of compensation. If the disability percentage is 100%, the compensation amount is equal to the employee’s monthly salary multiplied by 84, provided that the compensation does not exceed SAR 330,000. In the case of partial disability ranging from 50% to 90%, the compensation amount is equal to one full month’s salary multiplied by 60, provided that it does not exceed SAR 165,000.

When Does an Employee Lose the Right to Compensation?

The employee’s right to compensation lapses one full year after the date on which the compensation became due, unless the defendant has acknowledged this right or there is a legitimate excuse.