Saudi Arabia

Saudi to link insurance cover of domestic workers to labour contracts

The Saudi Ministry of Human Resources and Social Development has announced that it will soon implement an initiative linking insurance provision to labour contracts for domestic workers.

The initiative, recently approved by the Council of Ministers, aims to boost the Saudi labour market, facilitate bilateral negotiations with other countries, improve contractual relationships and reduce risks in the domestic labour recruitment market.

The spokesman for the ministry, Saad Al Hammad, said that the decision will contribute to reducing prices and guaranteeing rights for all parties, as well as increasing commitment from stakeholders.

The ministry will also periodically review the upper ceiling for recruitment costs, with penalties, including revocation of licences for recruitment companies, to be imposed for non-compliance.

All domestic worker recruitment will be required to be made through the official online platform, Musaned. The ministry has also set an upper limit for the cost of hiring domestic workers at SR15,000, exclusive of VAT, as part of its efforts to monitor recruitment costs and guarantee the quality of services in the labour market.

The ministry has also set upper limits for recruitment costs for domestic workers from a number of other countries including Uganda, Thailand, Kenya, Bangladesh, and the Philippines.


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