Saudi Arabia implements new insurance requirement to guarantee rights of domestic workers

• New insurance initiative aims to safeguard the rights and well-being of new domestic workers arriving to Saudi Arabia
• The insurance coverage on contracts for the recruitment of domestic workers is mandatory for the first two years from the beginning of the contract. 

The Ministry of Human Resources and Social Development (MHRSD) has launched insurance coverage for new domestic workers coming for the first time to Saudi Arabia. The ‘Insurance on Domestic Worker Contracts’ service came into force from 1 February 2024. 

The insurance coverage on contracts for the recruitment of domestic workers is mandatory for the first two years from the beginning of the contract. This will be within the procedures for the employer’s contract with the recruitment office or company. The insurance coverage after two years will be optional for employers. 

The insurance service will safeguard the rights of employers and domestic workers by providing compensation in a range of circumstances, commencing from the first day of work. Domestic workers will be provided with compensation in the event of disability resulting from an accident, and in circumstances in which the employer does not commit to paying salaries and financial dues as a result of the employer’s death or disability. 

A spokesperson for the Ministry of Human Resources and Social Development said: “Safeguarding the rights and wellbeing of employees and employers in the Kingdom of Saudi Arabia is our priority, and this new insurance service for domestic workers supports that objective. MHRSD has implemented several reforms to recruitment processes, alongside wider labour market reforms, improving the experiences of people working and hiring in the Kingdom. This forms part of our work to develop Saudi Arabia’s labour laws to make it safer, fairer and offer more opportunity for workers.” 

The insurance service for domestic workers’ contracts comes in line with the Ministry’s efforts to develop the recruitment sector and protect the rights of the domestic worker and the employer. The Ministry has previously launched the Wage Protection Program for Domestic Workers, to safeguard the rights of domestic workers’ wages in the Kingdom. 

At present, the insurance service for domestic workers is available only to Musaned users. After being launched as an optional feature in 2023, over 175,000 have opted for insurance coverage. The service has received positive feedback from customers and parties to the contractual relationship. 

The insurance service is part of the Ministry’s ongoing efforts to develop the recruitment sector and protect the rights of domestic workers and employers. The Ministry previously launched the Wage Protection System for domestic workers to preserve their wage rights in the Kingdom. The Unified Contract Program for the Recruitment of Domestic Workers stipulates that there should be a unified contract binding both parties to the contract that preserves contractual rights and specifies the obligations of both parties, in addition to setting a maximum ceiling for the recruitment of domestic workers to a number of countries, and many joint agreements. 

The MHRSD launched the Musaned platform to support the development of the recruitment sector in the Kingdom. The platform provides multiple services to improve and facilitate the recruitment journey, and resolve complaints and disputes that may occur between contracting parties, in addition to guaranteeing their rights.