
What Is Saudi Arabia's wage protection plan and how does it help expats secure their pay
TL;DR:
Saudi
's
Expatriate Worker Wage Insurance
, effective October 6, 2024, covers up to SAR 17,500 in unpaid wages and includes a repatriation ticket if 80%+ of workers at a firm go unpaid for six months.
It complements major digital labor reforms, such as the
Musaned platform
for domestic workers launched in October 2024, and sweeping 2025 labor-law enhancements around wage transparency and contract digitisation.
Early feedback from
Amnesty International
and financial services experts praises the initiative as a labor-rights improvement but notes exclusions and administrative barriers remain significant.
Saudi Arabia's groundbreaking wage-insurance program launched in late 2024 isn't an isolated initiative, it's part of a sweeping transformation of the private-sector employment landscape.
With workers facing fewer delays in wage payments, a digital-first Musaned platform built to monitor domestic labor contracts, and 2025 labor-law changes mandating electronic payslips and enforcing stricter wage transparency, the kingdom is aligning its labor market with global best practices. But while these reforms mark progress, enforcement nuances and the scope of worker protections especially for non-regulated sectors remain under scrutiny.
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.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Cardiologists Confirm: 60-Year-Old Sheds Fat With 4 Ingredients
The Healthy Way
Learn More
Undo
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.
2025 Labor-Law Overhaul: Transparency at the Core
May 2025 saw sweeping amendments to Saudi labor law that further reinforce wage protection mechanisms. Critical reforms include:
Mandatory electronic payslips with wage breakdowns, deadlines, and deductions logged for five years.
Wage payment grace period set at five business days; similar delay risks penalties.
Dispute resolution streamlined online via pre-litigation mediation and enforceable rulings, minimising bureaucratic hurdles.
How Reforms Fit Together
These initiatives connect across a unified policy framework:
Preventive measures
: Musaned helps avoid unpaid work before it occurs.
Transparent tracking
: Digital payslips and real-time monitoring make breaches more visible and prosecutable.
Reactive support
: The wage-insurance system provides a final safety net when defaults actually happen.
Together, these systems promise greater accountability among employers and faster financial recourse for workers.
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.
Looking Ahead: Enforcement, Accessibility, Inclusion
For the system to succeed, three areas need focus:
Threshold adjustments
: Lowering the 80% default requirement could protect lone or smaller groups of affected workers.
Simplified claims
: Reducing required documentation and wait times would improve access.
Broader coverage
: Expanding insurance to seasons, domestic workers, and contractors could complete the protection framework.
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.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
37 minutes ago
- Time of India
Net FDI inflows fell 98% in May as repatriation increased 24%: RBI Bulletin
Mumbai: Net foreign direct investment (FDI) into India fell 98% year-on-year to $35 million in May amid higher repatriation by overseas investors and a fall in gross inflows, latest central bank data published in its monthly Bulletin showed. Net FDI was 99% lower compared with April. Gross inflows fell 11% YoY to $7.2 billion in May, while repatriation of FDI increased nearly 24% to $5 billion. Outward FDI increased to $2.1 billion from $1.8 billion a year ago. Explore courses from Top Institutes in Please select course: Select a Course Category Technology Healthcare Others CXO Degree others Management Product Management Data Science Operations Management healthcare MCA Design Thinking Project Management Public Policy Cybersecurity Data Science Artificial Intelligence Digital Marketing Data Analytics MBA Leadership PGDM Finance Skills you'll gain: Duration: 12 Weeks MIT xPRO CERT-MIT XPRO Building AI Prod India Starts on undefined Get Details The Reserve Bank of India (RBI) said that Singapore, Mauritius, the UAE and the US together accounted for more than three-fourths of the total FDI inflows in May 2025. Manufacturing, financial and computer services were the top recipient sectors. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like How Smart Are You Really? This Test Will Surprise You Try Now Undo On the other hand, top sectors for outward FDI included transport, storage and communication services, manufacturing, and financial, insurance and business services. Major destinations for outward FDI included Mauritius, the US and the UAE. In May, net portfolio investments stood at $1.6 billion. This compares with net portfolio outflows in the year and month-ago periods. Live Events According to experts, FDI inflows are perceived to be a more stable source for India's foreign exchange reserves compared to portfolio flows. Currently, India's FX reserves stood at $696.7 billion. At the current level, FX reserves provides cover for more than 11 months of goods imports and for 95% of the external debt outstanding at the end of March 2025.


Time of India
41 minutes ago
- Time of India
TCS defers onboarding of 650 lateral hires amid project delays
Bengaluru: In a recent development, Tata Consultancy Services (TCS) informed candidates that their onboarding will be contingent upon business requirements, leaving approximately 650 lateral hires in a state of uncertainty. These individuals, who possess varying levels of experience, were initially scheduled to join the company between July and September. However, due to delays in project commencement dates, their onboarding was postponed. The affected candidates expressed concerns, particularly those who already resigned from their previous positions, leaving them in professional limbo. TCS, in a communication reviewed by the Times of India, assured candidates that the company remains committed to honouring the job offers and will proceed with onboarding as soon as the need arises. "We can confirm that, as always, TCS is committed to honour all offers we made, whether it is to freshers or experienced professionals. Everyone who received an offer from TCS will be onboarded. The joining dates are decided as per business demand and, in some cases, they do get adjusted to meet our business needs. We remain in continuous touch with all candidates in these cases and look forward to them joining our company soon," the company said in response to TOI's queries. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Dubai villas | search ads Get Deals Undo You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru Many employees say that there is no response from the HR SPOCs (single point of contact) they are dealing with for the onboarding. In some cases, the HR department told candidates that their background verification is still ongoing and the new dates for onboarding will be communicated soon. This situation is reminiscent of a previous instance where TCS, along with other IT service companies, delayed the onboarding of fresh graduates. The initial surge in demand for IT services during the Covid-19 pandemic led to over-hiring. However, subsequent global events, such as the Russia-Ukraine conflict and economic recessionary pressures, prompted these companies to pause the onboarding process. In June, TCS implemented a significant change to its bench policy, requiring associates to secure a project within 35 days if they found themselves on the bench. Failure to do so could result in severe consequences, including termination. This move was seen as a response to the fluctuating demand for IT services and the need for the company to optimise its workforce. The current delay in onboarding lateral hires highlights the ongoing challenges faced by the IT industry in balancing workforce management with fluctuating project demands. While TCS reassured candidates of its commitment to their employment, the uncertainty left many in a precarious position, particularly those who already severed ties with their previous employers. As the situation unfolds, TCS's approach to managing its workforce and project demands will be closely watched by industry peers and potential employees alike, serving as a barometer for the broader IT services sector's response to ongoing global challenges.


Time of India
44 minutes ago
- Time of India
Draft telecom policy puts focus on jobs, accessibility
New Delhi: The latest National Telecom Policy (NTP-25) has listed down creating a million jobs and covering the entire population through 4G services as among its key goals to be reached by 2030. Other NTP goals are covering 90% of the population with 5G, increasing fiberisation of towers to 80%, having accessible devices for all, deploying 1 million public WiFi hotspots , and reaching fixed broadband services to 100 million households. Explore courses from Top Institutes in Please select course: Select a Course Category Project Management Cybersecurity Digital Marketing others CXO Data Science Technology Others PGDM Product Management Operations Management Leadership Management Design Thinking Artificial Intelligence Data Science Healthcare MCA Degree Finance MBA healthcare Public Policy Data Analytics Skills you'll gain: Portfolio Management Project Planning & Risk Analysis Strategic Project/Portfolio Selection Adaptive & Agile Project Management Duration: 6 Months IIT Delhi Certificate Programme in Project Management Starts on May 30, 2024 Get Details Skills you'll gain: Project Planning & Governance Agile Software Development Practices Project Management Tools & Software Techniques Scrum Framework Duration: 12 Weeks Indian School of Business Certificate Programme in IT Project Management Starts on Jun 20, 2024 Get Details A draft of the policy, which has laid out goals and targets to be achieved in the next five years, has been put up for public consultation. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Indonesia: New Container Houses (Prices May Surprise You) Container House | Search ads Search Now Undo As per the draft, the policy is anchored in six strategic missions with clearly defined goals and targeted strategies. The aim is to deliver affordable, high-quality connectivity to every citizen, drive self-reliant manufacturing and exports of telecom equipment, establish robust framework for cyber security, create a simplified regulatory environment etc. "With this policy, India aims to emerge not only as a leading consumer of digital technologies, but also as a trusted global provider of telecom products, services, and solutions," the preamble of the draft policy said. Live Events The NTP-25 aims to accomplish 10 key objectives by 2030 which include having universal and meaningful connectivity for all, achieve '1 lakh crore ($12 billion) annual investment in telecom infrastructure, double the export of telecom products and services, create 1 million new jobs in telecom sector and another 1 million workers to be reskilled among others. To expand the telecommunication network, it has been proposed to devise Digital Bharat Nidhi (DBN) schemes to expand mobile networks in underserved rural, remote, and urban areas and also introduce incentive schemes for proliferation of fixed line broadband. The policy proposes to promote advanced technologies and satellite integration . It calls for setting up satcom use case labs for socio-economic applications and enabling ground station as a service (GSaaS) from India.