Saudi Arabia ends Kafala system: What’s it, how will it profit 1.34 crore migrants, together with Indians? Key particulars

Saudi Arabia has in a landmark labour reform abolished its 50-year lengthy employee sponsorship programme often called the Kafala system, in accordance with stories.

The choice, first introduced in June 2025, will affect rights and lives of round 1.34 crore migrant staff — majority from Southeast Asia and South Asia, together with Indians, dwelling within the Center Japanese nation, as per an India At present report.

What’s the Kafala system?

Carried out within the Nineteen Fifties, the Kafala system, which in Arabic actually interprets to sponsorship system, gave employers full management over their staff’ authorized standing, residency, when or if they may go away the nation, search authorized assist, and even change jobs, as per the report. The system tied every sponsor or ‘Kafeel’ to a migrant employee.

Why was the Kafala system criticised?

Initially designed to manage the move of low-paid, migrant labour into the oil-rich nation, the system started to be abused. Rights group criticised the coverage as “modern-day slavery” amid stories of employers exploiting staff, limiting their actions, denying wages, delaying funds and seizing their passports, it stated. Additional, the mistreated staff have been reportedly additionally unable to hunt assist or return dwelling.

Which staff are more likely to be impacted?

Saudi Arabia at current has an estimated 1.34 crore international staff. They account for near 42 per cent of the Kingdom’s inhabitants because it is determined by migrants for development work, agriculture, home work, and extra.

A majority of the estimated 1.34 crore staff hail from Bangladesh, India, Nepal and the Philippines.

Demographic clever, the part set to learn essentially the most from the reform are girls, engaged in home work. International rights teams have repeatedly flagged mistreatment of home staff beneath the Kafala system.

Why the change now?

Saudi Arabia isn’t alone in reforming its migrant labour insurance policies. In 2022, beneath immense world strain because it was named as host for the FIFA World Cup, Qatar additionally abolished related criticised employee guidelines, it stated.

Saudi’s resolution comes from Crown Prince Mohammed bin Salman’s ‘Imaginative and prescient 2030’ that seeks to scale back the nation’s dependence on oil and re-brand it as a contemporary and progressive nation, the report added.

The nation goals to carry its labour requirements on par with world system so as to appeal to extra international traders and expert professionals, it stated.