Wage Insurance as a Safety Net, Not a First Responder
Implemented jointly by the Ministry of Human Resources and Social Development (HRSD) and the Insurance Authority, Saudi’s insurance policy ensures private-sector expats receive up to 6 months’ wages (capped at SAR 17,500, around $4,667) if 80% or more of a firm’s workers are left unpaid for the same period. A repatriation flight ticket (up to SAR 1,000, around $267) is also included for employees who choose to leave the kingdom rather than transfer sponsors.
Digital Oversight: Musaned Platform Rolls Out
Just days after the insurance launch, the Musaned platform went live in mid‑October 2024 digitising domestic-worker contracts, embedding wage monitoring, and enabling embassies to track worker status via the app. It has since processed some 12,649 domestic-labour disputes, covering nationalities like India, Philippines, and Vietnam. Musaned now supports digital contract access, payment tracking, and dispute-resolution tools.
Praise Amid Caveats
International observers commend Saudi’s efforts, given the historical vulnerabilities of contract migrant labour. Amnesty International, however, warns that thresholds 80% firm default and six-month window may exclude isolated or short-term non-payment cases, leaving some workers unprotected.Law firms like Deloitte and Fragomen highlight the program's alignment with Vision 2030, but emphasise that documentation-heavy claims and high eligibility thresholds require further refinement.
Expat Voices: Modular Improvements, Still a Safety Net
Arab News interviewed Abdulrahman Al-Zaid, head of international HR at HRSD, who called the insurance part of a broader labor modernization push. An expat consultant from India described it as a "crucial financial relief" during salary delays, noting that return ticket coverage was “particularly helpful”. Online forums echo this positive reception.
Saudi Arabia’s wage insurance is more than a wage-filing tool, it’s a milestone in its multi-phase labor reform agenda, which includes the Musaned platform, electronic wage transparency, and digital dispute resolution. These new systems collectively signal a shift from reactive protection to proactive labor market oversight. Achieving real-world worker empowerment, however, will depend on refining thresholds, improving accessibility, and reinforcing legal recourse. Saudi now has the blueprint to elevate migrant-worker protections—and how it implements it next may define its success.