Saudi Press

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Thursday, Oct 02, 2025

Insurance on domestic labor contracts will be applied within a few weeks

Insurance on domestic labor contracts will be applied within a few weeks

The Ministry of Human Resources and Social Development, in cooperation with the Saudi Central Bank (SAMA), will start implementing the decision to apply insurance on labor contracts while hiring domestic workers.
The landmark move, which will bring forth several advantages both for domestic workers as well as for their employers, would come into force in March or April, Al-Eqtisadiah newspaper reported.

The ministry has been completing the procedures for the insurance of labor contracts of domestic workers through linking insurance companies to its Musaned exclusive platform for the recruitment of domestic workers. A decision in this regard will be announced soon, sources at the ministry have said.

The insurance on the domestic labor contract will be beneficial for the employer in terms of refunding of the value of recruitment costs in the event of any cases of runaway of workers or abstention from work in the remainder of the contract period after the expiry of the three-month probation.

As for the domestic workers, they will be given compensation for their overdue salary in the event of the failure on the part of the employment to make its prompt payment. The ministry’s decision to introduce insurance on the recruitment contract will not be mandatory, but will be optional for beneficiaries wishing to recruit domestic workers.

However, linking recruitment of domestic help with the insurance policy will bring more advantages for the beneficiaries, and that include obtaining discounts at a certain percentage of the value of the insurance premium during its renewal in the event that the sponsor complies with the terms and conditions of the policy, including paying the worker’s salaries on a regular basis.

According to Article 6 of the Regulations for Domestic Workers and Those of Similar Status, the domestic worker is obligated to perform the agreed upon work, such as obeying orders of the employer and members of his family in line with the provisions of the labor contract, and not to refuse work or quit work without a legitimate reason.

The article stipulates that the workers shall not engage in work for their own personal benefit. The domestic worker shall safeguard the property of the employer and his family members, and shall not do anything that is harmful to the family members, including children and the elderly.

The worker is also bound to preserve the secrets of the employer, as well as his family members and not divulge them to others.

According to the regulations, the workers shall not do anything that is damaging the dignity of the employer and family members. They should not interfere in their personal affairs. They also have to respect the religion of Islam, abide by the regulations that are in force in the Kingdom as well as the customs and traditions of Saudi society.
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