Saudi Arabia Implements Mandatory Insurance for Workers in Insurance Sector

Saudi Arabia has introduced mandatory insurance for new domestic worker contracts as part of labor market regulations. This insurance covers the initial two years and becomes optional for the employer afterward. It ensures compensation for both the domestic worker and employer in specific situations like absence, escape, death, or disease-related incapacitation.

Administered through a government platform called Musaned, the initiative aims to protect the rights of domestic workers, providing compensation for accidents resulting in infirmity and unpaid wages due to the employer’s death or incapacity. Musaned also serves as a platform for information on rights, duties, and services related to domestic worker employment.

In October, new rules set a minimum age of 21 for domestic workers in Saudi Arabia. Contracts follow mandatory rules set by the ministry, emphasizing the Gregorian calendar for dates. The regulations also prioritize dues to workers or heirs as first-degree debts.

Contracts should have a fixed duration, renewable for a year if unspecified, with a maximum of 10 working hours daily and a weekly paid 24-hour rest. Employers are prohibited from withholding passports or personal belongings.

Domestic workers in Saudi Arabia cover various roles, and Musaned is emphasized as the official recruitment platform by the Ministry of Human Resources. These measures, including insurance, contractual clarity, and a designated platform, demonstrate Saudi Arabia’s commitment to improving conditions for domestic workers and providing clear guidelines for employers. These efforts contribute to a more structured and regulated domestic labor market in the country.

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