[Saudi Arabia] New wage insurance is a worker protection milestone

In Saudi Arabia, the Ministry of Human Resources and Social Development and the Insurance Authority have announced the launch of the expatriate worker wage insurance service for private sector defaults, Arab News reports.

Ahmed Al-Sharqi - deputy minister of labour affairs at the Ministry of Human Resources and Social Development - commented on the 'milesone' launch in Arab News, saying, “This initiative strengthens the Kingdom’s commitment to protecting the financial rights of workers while helping employers create a fair, competitive, and secure labour market.

“The insurance service ensures that expatriate workers will receive their wages, in the rare cases where employers are unable to meet their obligations. To facilitate this, the ministry has assigned an insurance company to handle compensation claims by expatriate workers, in accordance with the terms and benefits defined by the insurance policy.

“This initiative is not only about worker protection; it is connected to Saudi Arabia’s broader economic transformation.”

According to the deputy minister, the Kingdom’s labour reforms are already driving positive change. He wrote, “The overall unemployment rate, which includes expatriate workers, fell to 3.3 per cent in the second quarter of 2024, down from 4.1 per cent in the previous year.

“This indicates that reforms aimed at job creation and worker protection are having a tangible impact on the economy.

“As the country continues to attract world-class global talent, these reforms are helping to power the Kingdom forward. To maintain this momentum, it is essential to continually evaluate and improve the labour market to make sure it remains competitive and fair for the workforce.”

Al-Sharqi noted that digital transformation has also played a significant role in modernising Saudi Arabia’s labour market. He said, “Platforms like Musaned and Qiwa have streamlined employment processes, offering expatriates access to standardised contracts and efficient solutions for resolving issues. The Musaned platform has revolutionised recruitment for domestic workers, while Qiwa, a platform designed to help businesses operate more efficiently, has enhanced transparency across the private sector.

“These reforms have received significant recognition from leading global entities, including the International Labour Organization, which acknowledges Saudi Arabia’s progress in enhancing its labour market.

“The launch of wage insurance is further proof of the Kingdom’s commitment to creating a labour market that is not only competitive but also fair and just for all workers.

“As Saudi Arabia continues to prioritise worker rights and enhance its labour practices, the Kingdom is making significant strides toward realising the broader goals of Vision 2030.”

In conclusion, the deputy minister wrote, “The launch of the wage insurance service is a key milestone on the path to becoming a global hub of opportunity, where expatriates and locals alike can build their futures in a safe, supportive, and dynamic environment.”

Source: Arab News

(Quotes via original reporting)

In Saudi Arabia, the Ministry of Human Resources and Social Development and the Insurance Authority have announced the launch of the expatriate worker wage insurance service for private sector defaults, Arab News reports.

Ahmed Al-Sharqi - deputy minister of labour affairs at the Ministry of Human Resources and Social Development - commented on the 'milesone' launch in Arab News, saying, “This initiative strengthens the Kingdom’s commitment to protecting the financial rights of workers while helping employers create a fair, competitive, and secure labour market.

“The insurance service ensures that expatriate workers will receive their wages, in the rare cases where employers are unable to meet their obligations. To facilitate this, the ministry has assigned an insurance company to handle compensation claims by expatriate workers, in accordance with the terms and benefits defined by the insurance policy.

“This initiative is not only about worker protection; it is connected to Saudi Arabia’s broader economic transformation.”

According to the deputy minister, the Kingdom’s labour reforms are already driving positive change. He wrote, “The overall unemployment rate, which includes expatriate workers, fell to 3.3 per cent in the second quarter of 2024, down from 4.1 per cent in the previous year.

“This indicates that reforms aimed at job creation and worker protection are having a tangible impact on the economy.

“As the country continues to attract world-class global talent, these reforms are helping to power the Kingdom forward. To maintain this momentum, it is essential to continually evaluate and improve the labour market to make sure it remains competitive and fair for the workforce.”

Al-Sharqi noted that digital transformation has also played a significant role in modernising Saudi Arabia’s labour market. He said, “Platforms like Musaned and Qiwa have streamlined employment processes, offering expatriates access to standardised contracts and efficient solutions for resolving issues. The Musaned platform has revolutionised recruitment for domestic workers, while Qiwa, a platform designed to help businesses operate more efficiently, has enhanced transparency across the private sector.

“These reforms have received significant recognition from leading global entities, including the International Labour Organization, which acknowledges Saudi Arabia’s progress in enhancing its labour market.

“The launch of wage insurance is further proof of the Kingdom’s commitment to creating a labour market that is not only competitive but also fair and just for all workers.

“As Saudi Arabia continues to prioritise worker rights and enhance its labour practices, the Kingdom is making significant strides toward realising the broader goals of Vision 2030.”

In conclusion, the deputy minister wrote, “The launch of the wage insurance service is a key milestone on the path to becoming a global hub of opportunity, where expatriates and locals alike can build their futures in a safe, supportive, and dynamic environment.”

Source: Arab News

(Quotes via original reporting)