Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has taken a significant step towards safeguarding the rights of domestic workers by making insurance coverage mandatory for new hires arriving through the Musaned platform. The policy, effective February 1st, 2024, marks a shift from the optional system implemented earlier this year, where over 175,000 clients opted for coverage.
The two-year insurance scheme provides compensation for both employers and domestic workers in various situations, including non-compliance, disability, and chronic illnesses. Notably, it covers repatriation and personal belongings in the event of a worker’s death, ensuring their families are not burdened with additional costs.
Furthermore, the policy addresses concerns about worker safety and fair treatment by offering compensation for total permanent or partial disability resulting from accidents. This incentivises employers to prioritise worker well-being and implement safety measures. Conversely, employers are also protected against financial losses in case of their own death or disability, providing a sense of security for both parties.
The Musaned platform, which serves as the official platform for domestic worker recruitment in Saudi Arabia, plays a crucial role in facilitating the new insurance scheme. Beyond its existing services of enhancing recruitment processes and resolving disputes, Musaned will now also handle the insurance enrolment and claims management, ensuring a streamlined and efficient experience for all parties involved.
This mandatory insurance policy marks a positive development for Saudi Arabia’s domestic worker market. By providing financial security and legal protections, the policy aims to attract a wider pool of qualified workers, improve working conditions, and promote fairer treatment within the sector.
