Further drop feared in sending housemaids as Saudi employers to pay less migration cost

The latest reduction in migration costs paid by Saudi employers for Bangladeshi domestic workers raises concerns about potential declines in female worker migration, according to sector insiders.

Till now, an employer had to pay 13,000 Saudi riyal (around Tk3,80,467) to the agencies per Bangladeshi female domestic worker, which has been decreased to SR11,750 (around Tk3,43,884), according to a notification issued by the kingdom's Ministry of Human Resources and Social Development on 15 January.

According to the Bureau of Manpower, Employment and Training (BMET) data, the number of Saudi-bound female workers already decreased by around 20,000 in 2023 compared to 2022. 

Saudi Arabia also reduced the costs of recruiting domestic workers from several other countries, namely the Philippines, Sri Lanka, Uganda, Kenya, and Ethiopia.

According to the Saudi ministry, to establish equitable pricing, the revised maximum ceilings for recruitment costs in five other countries are as follows – Philippines: SR14,700 ($3,920), Sri Lanka: SR13,800 ($3,680), Kenya: SR9,000 ($2,400), Uganda: SR8,300 ($2,213), Ethiopia: SR5,900 ($1,573).

The recruitment of domestic workers, including housemaids, in Saudi Arabia is done through the employer-pay model, where a company bears all the migration costs of workers, including the service charges of recruiting agencies. That means a domestic worker goes through zero migration costs to the destination.

Individuals of both genders from Bangladesh travel to Saudi Arabia to offer domestic services such as housekeeping, driving, cooking, and cleaning. However, Saudi employers exclusively adhere to the employer-pay model for female domestic workers.

This decision is likely to reduce female domestic workers' flow to Saudi Arabia, local recruiting agencies say. 

They say female workers' flow to Saudi Arabia is already declining due to rising migration costs including airfare and a slow migration process.

Tipu Sultan, a recruiter who sends domestic workers and also the joint secretary of the Bangladesh Association of International Recruiting Agency (Baira), told TBS, "Saudi Arabia is paying higher migration costs for recruiting domestic workers from the Philippines and Sri Lanka. But they are hiring workers from Bangladesh for less money which is unfortunate. It will be very challenging to recruit workers now because of the cost reduction."

"On the one hand, the airfare and other expenses related to migration are rising and, on the other, the employers want workers delivered in a short period. That is why fewer female workers went to Saudi Arabia in 2023," Tipu Sultan said.

Asked whether Bangladeshi workers are being paid less because of lower skills, he said, "I do not think so. Our workers are better skilled than Sri Lanka's."

Bangladesh sent 76,108 female workers in different countries last year while the number was 1.05 lakh in 2022.

Saudi Arabia recruited the highest number of 50,254 females (66%), mostly housemaids in 2023.

Stating that the process of sending women workers is slow, Tipu said, "Earlier, women workers were given three weeks of training. But suddenly this training period was shortened to two months without any discussion with us [agencies]. The whole process now takes about four to six months. However, employers want workers delivered quickly. Failing to get workers, the employers turn to other countries." 

After reducing the migration costs, the kingdom's Ministry of Human Resources and Social Development said the measure is aimed at ensuring fairness in recruitment costs and is part of Saudi Arabia's broader initiative to review applicable regulations and associated costs, reports the Arabian Business.

Shamim Ahmed Chowdhury Noman, former secretary general of Baira, told TBS, "The funds provided by the Saudi employers cover various government fees such as service charges, airfares, intermediary costs, medical expenses, and training expenditures. Employers have been advocating for a reduction in these costs with Saudi authorities for a while. As a result, Saudi authorities reduced the costs."

"Our agencies and workers do not gain any advantage from this decision; it solely benefits the Saudi employers. With additional funds, we could have increased the capacity of our workers before sending them abroad," he added.

KSA top destination for Bangladeshi workers 

Approximately 28 lakh Bangladeshi workers are employed in Saudi Arabia, making it the largest destination for them, as per an unofficial estimate.

Saudi Arabia recruited the highest number of 4.98 lakh Bangladeshi workers last year, accounting for around 38% of the total (over 13 lakh) foreign employment, particularly in roles such as construction workers, cleaners, masons, plumbers and drivers.

A total of 5.27 lakh female Bangladeshis have been employed in Saudi Arabia since 1991.

Bangladeshi migrants sent $3.2 billion as remittance from Saudi Arabia last year, the second highest after the USA.

High migration costs a serious concern 

High migration costs have long been a concern for Bangladeshi workers as they pay three to four times higher than government fixed rates.

It takes more than 17.6 months on average for Bangladeshi labour migrants to recover the money they spend on their employment in foreign countries, according to a survey by the Bangladesh Bureau of Statistics (BBS).

Migration experts say that it is the employer's responsibility to pay the recruitment cost, however, Bangladeshis have to spend an average of Tk4.17 lakh for overseas jobs.