Latest news with #MinistryofHumanResourcesandSocialDevelopment
Time of India
a day ago
- Business
- Time of India
What Is Saudi Arabia's wage protection plan and how does it help expats secure their pay
Saudi Arabia's new wage insurance and digital reforms aim to safeguard expatriate workers' rights and earnings amidst Vision 2030 labor market transformations/Representative Image 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.
Saudi Gazette
6 days ago
- Business
- Saudi Gazette
HR Ministry launches 'Skills Week' to empower youth and align talent with labor market needs
Saudi Gazette report RIYADH — The Ministry of Human Resources and Social Development launched 'Skills Week' on Monday, in conjunction with World Youth Skills Day, under the theme 'Skills First.' The initiative reflects the ministry's ongoing efforts to develop a national skills framework, invest in Saudi human capital, and enhance the readiness of local talent to meet the demands of both domestic and global labor markets. The week-long initiative aims to spotlight national programs that enhance the efficiency, competitiveness, and productivity of Saudi Arabia's labor market while empowering youth and equipping them with the skills required to thrive. The campaign includes a range of initiatives focused on identifying and planning skill needs, aligning training efforts with labor market demand, and strengthening partnerships with the private sector. Dr. Ahmed Al-Zahrani, Assistant Minister for Skills and Training, said the launch of 'Skills Week' highlights the Kingdom's commitment to preparing its workforce for rapid labor market transformations.'This is a key milestone in showcasing Saudi Arabia's progress toward a fully integrated national skills ecosystem,' he said.'Through this initiative, we aim to drive a shift toward a skills-based economy by implementing the national skills strategy, developing a national skills framework, and ensuring education and training outcomes match current and future job market needs.'He added that the ministry will continue to advance specialized initiatives that bolster both the labor market and Saudi citizens' competitiveness at home and abroad.
Arab Times
11-07-2025
- Business
- Arab Times
Saudi Arabia Modernizes Labor Market with New Expat Classification System
RIYADH, July 11: Saudi Arabia's Ministry of Human Resources and Social Development (HRSD) has announced the implementation of a new framework to classify expatriate work permits into three categories: high-skill, skilled, and basic. The initiative, unveiled on the Ministry's official X (formerly Twitter) account, aims to regulate the labor market, enhance workforce development, and foster a more competitive and innovative business environment. It aligns with the strategic objectives of Saudi Vision 2030 and the National Transformation Program. Implementation Timeline and Classification Details The reclassification process for current expatriate workers began on June 18, 2025, with full rollout set for July 6, 2025. New expatriates entering the Kingdom will be subject to the classification system starting August 3, 2025. The classification system is based on a range of factors, including: A detailed guide outlining the new classification process is available on the Ministry's official website.
&w=3840&q=100)
Business Standard
10-07-2025
- Business
- Business Standard
Saudi Arabia's new skill-based work permits for foreign workers explained
Foreign workers entering Saudi Arabia, including thousands from India, will now be classified under a new skill-based work permit system that came into force on July 1, 2025. The change applies to all new recruits, while reclassification of existing expatriates began on June 18, according to the Saudi Press Agency and a ministerial notice. Three categories based on qualifications and wages The reform divides foreign workers into three skill levels — high-skill, skilled, and basic — using a combination of qualifications, work experience, technical capabilities, wages, and age. The reclassification is part of a broader effort by Saudi Arabia's Ministry of Human Resources and Social Development to streamline its labour market and match workforce capabilities with actual market requirements. A digital evaluation process via the Qiwa platform has been introduced to standardise how workers are assessed. According to the Saudi government, the demand for technically trained and experienced professionals has surged due to ongoing 'giga-projects' such as NEOM, the Red Sea Project, Qiddiya, and Diriyah Gate. These projects span a range of sectors, including tourism, construction, and technology, and are being delivered under tight timelines. Meanwhile, foreign workers continue to play a central role in Saudi Arabia's workforce, with 15.7 million expatriates making up 44.4 per cent of the total population as of 2024. Among those aged 15 to 64, 89.9 per cent of non-Saudis fall into the working-age bracket, based on data from the General Authority for Statistics (GASTAT). For Indians workers, Saudi continues to be a preferred destination. According to India's Ministry of External Affairs, there are 2.65 million Indians working in Saudi Arabia. This number represents a significant portion of the Indian expatriate community in the Gulf region. What's changing under Saudi Arabia's new work permit system Skill-based classification: All foreign workers are now grouped into three categories — high-skill, skilled, and basic — based on qualifications, experience, technical skills, age, and wage level. New hires vs existing staff: Classification began for new foreign workers on July 1, 2025. For those already in the country, it started on June 18. Digital evaluation via Qiwa: Assessments will be carried out on the Qiwa platform, aligned with Saudi Arabia's official classification of professions and educational levels. Implementation Timeline: Phase 1 (from July 5, 2025): Classification applied to current expatriate workers in Saudi Arabia. Phase 2 (from August 3, 2025): Mandatory for all new incoming workers. Classification criteria: According to the Saudi government, foreign workers are assessed using: • Educational qualifications • Years of relevant experience • Practical/vocational skills • Wage level • Age bracket Occupation groups: Occupations are mapped to nine major groups in the Saudi Unified Occupational Classification, including: • Managers • Professionals• Technicians and assistants • Clerks • Sales and service workers • Agricultural workers • Craftsmen • Machine operators • Elementary occupations Mechanism of classification: Each applicant will be assigned a skill level depending on: • Type of occupation • Minimum educational level required • Proof of experience and qualifications • Wage threshold (varies by skill level) • Age limits (e.g. for basic level, under 60) For example: A high-skill worker must belong to top 3 occupational groups, earn above a set wage, and meet the experience and qualification criteria. A basic skill worker will usually be under 60 and belong to elementary roles. Can workers change their classification? Yes, if they later meet the criteria for a higher category (e.g. higher wage, updated qualifications), they may request reclassification via the ministry's online portal, the government stated. Workforce planning and transparency The new classification is intended to improve transparency and workforce planning, giving employers a clearer picture of skill availability. It also allows workers to request reassessment if they qualify for a higher category. The evaluation will follow a points-based system, giving weight to professional experience where formal education may be lacking, according to Saudi government. 'The measure is meant to improve worker performance, attract global talent to transfer expertise and experience to the Saudi labour market, and benefit from international knowledge,' said a report by the Saudi Press Agency. This reclassification feeds into the ongoing Professional Verification Program, which was launched in 2021 and expanded last year. It verifies the educational and professional credentials of foreign workers across sectors such as engineering, healthcare and education before they enter the Kingdom. The programme currently covers 128 countries and is set to expand to 160. Record low unemployment and steady remittances Labour market indicators appear to be improving. The overall unemployment rate in Saudi Arabia dropped to 2.8 per cent in the first quarter of 2025 — the lowest on record — while the jobless rate among expatriates fell to 0.8 per cent, according to GASTAT. At the same time, foreign workers continue to contribute to the Kingdom's economy. In February 2025 alone, remittances by expatriates reached SR12.78 billion ($3.41 billion), according to the Saudi Central Bank. What employers and workers must do The ministry has urged employers to review their workforce composition and complete the reclassification process on Qiwa. Workers who believe they meet the criteria for a higher classification can also submit reassessment requests through the platform.
Filipino Times
08-07-2025
- Business
- Filipino Times
Saudi Arabia rolls out new skill-based work permit for expats
The Ministry of Human Resources and Social Development in Saudi Arabia has introduced a new classification system for expatriate work permits, dividing them into three categories: high-skill, skilled, and basic. The decision, announced by Minister Ahmed Al-Rajhi, forms part of wider efforts to raise workforce quality and enhance labor market efficiency in the country, the Saudi Press Agency reported. The system was implemented on June 18 for expatriates already employed in the Kingdom, and will apply to all incoming workers beginning July 1. This classification is meant to ensure that workers are placed in jobs that match their qualifications and experience. It also aims to bring in global talents who can help develop the local labor market through their knowledge and skills. According to the ministry, the decision will strengthen verification processes and allow better management of skill-level distribution among expatriates, aligning with international standards. Technical system upgrades have also been rolled out to support this change. A detailed guide explaining the new classification is available on the ministry's official website. The initiative is part of Saudi Vision 2030 and the National Transformation Program to build a more competitive and innovative labor environment.
