Saudi Musaned Platform Clarifies Domestic Worker Insurance

The Musaned platform in Saudi Arabia has issued clarifications regarding the scope of domestic worker insurance, shedding light on its application and optional nature. According to the platform, insurance coverage for domestic worker contracts is not obligatory but can be availed on an optional basis, specifically for new labor contracts initiated through the Musaned platform.

This service was introduced as a pilot program, with the option for domestic workers and their employers to opt-in when formalizing labor contracts through the Musaned platform. It is crucial to note that domestic workers cannot be insured retroactively once they have arrived in the Kingdom; insurance arrangements must be made at the time of contract signing.

The price of insurance is subject to several variables, including the nature of the worker's job, their monthly salary, nationality, age, and the overall contract value. Employers may find a reference to the insurance premium on the contract invoice.

In the event that an employer decides to terminate the insurance coverage after the domestic worker has already arrived in Saudi Arabia, the employer should directly contact the insurance provider, adhering to the insurer's stipulated cancellation procedure.

The introduction of insurance for new domestic worker contracts via the Musaned platform serves the dual purpose of safeguarding the rights of both the worker and the employer. This initiative is designed to provide a range of insurance benefits, aiming to compensate parties involved in the event of unforeseen circumstances.

It is noteworthy that the Council of Ministers has subsequently approved the Ministry's proposal to link insurance coverage with labor agreements for the hiring of domestic workers. This move underscores Saudi Arabia's commitment to enhancing labor conditions and ensuring the welfare of domestic workers while offering flexibility to employers in opting for insurance coverage as needed.