The Ministry of Human Resources and Social Development in the Kingdom of Saudi Arabia continues its diligent efforts to regulate and develop the recruitment sector through the “Musaned” platform, which serves as a cornerstone for safeguarding the rights of all parties. In a strategic move aimed at enhancing stability in the domestic labor market, the Ministry has introduced “insurance for new domestic worker contracts,” along with implementing precise mechanisms for salary transfers, reflecting the Kingdom’s commitment to international human and labor rights standards.
Context of developing the recruitment sector in the Kingdom
These services didn't emerge in a vacuum; rather, they are part of a series of initiatives launched by the Ministry within the framework of the Kingdom's Vision 2030 to improve the work environment. The establishment of the "Musaned" platform was intended to serve as the unified official umbrella for recruitment services, aiming to eliminate unlicensed brokers, ensure transparency in costs, and resolve labor disputes digitally and effectively. These steps represent a qualitative leap in the history of the Saudi labor market, contributing to raising the Kingdom's ranking in international indicators related to the protection of expatriate workers.
Details of mandatory contract insurance service
The actual implementation of the insurance service for domestic worker recruitment contracts began on February 1, 2024, and the Ministry has put in place a precise regulatory framework for this service:
- Mandatory: The service is mandatory for the first two years from the beginning of the contract for workers coming for the first time, and it is included in the costs of contracting with recruitment offices.
- Optional: After the first two years, renewing the insurance becomes an option available to the employer when renewing the residence permit or contract.
Insurance benefits for employer and employee
The insurance policy aims to reduce financial and social risks, covering the following situations:
- Compensation for the employer: This applies in cases of employee absence (absconding), refusal to work, death, incapacity for work, or chronic illness. Compensation also covers the costs of repatriating the body and personal belongings in the event of death.
- Compensation for domestic workers: In cases of total or partial permanent disability resulting from an accident, or in the event that the employer is unable to pay wages as a result of death or disability.
Salary transfer mechanism and wage protection
To ensure the documentation of financial rights, the ministry has linked its services to approved digital channels, requiring employers to comply with the Wage Protection Program. The salary transfer process involves several steps to guarantee the integrity of the procedure
- Opening a bank account or digital wallet for the worker through the approved channels in “Musaned”.
- The presence of a mobile phone number registered in the worker's name and linked to his residence.
- Use the “Domestic Worker Salaries” option in banking applications to ensure payment documentation in the system.
Legally guaranteed rights of domestic workers
The ministry confirmed that these measures are intended to strengthen workers' rights, which include:
- Get one day off per week, and at least 8 hours of rest per day.
- The worker has the right to keep his passport and personal documents.
- Obtaining paid sick leave (30 days) based on a medical report.
- Entitlement to a round-trip airfare ticket with a paid monthly leave after renewing the contract for two additional years.
