Background and Rationale

In the Gulf Cooperation Council (GCC) countries, migrant workers, who constitute a significant share of the labor force, are generally excluded from comprehensive old-age social security systems. Instead, they are covered under End-of-Service Indemnity (EOSI) schemes, which operate as lump-sum payments tied to the length of service.

EOSI arrangements are employer-financed and often fall short of the minimum standards for old-age protection outlined in the ILO Social Security (Minimum Standards) Convention, 1952 (No. 102) and other relevant international instruments. Specifically, they lack solidarity-based financing, adequate risk pooling, and sustainability, leaving many workers vulnerable at the end of their careers.

The EOSI system has been criticized for providing insufficient and unreliable protection to workers, for placing the financial burden on employers and for lacking solidarity in financing, falling short of all key requirements of international social security standards, as a recent ILO report explains. Rather than pooling risks, individual employers are financially responsible, hence employers that do not set aside sufficient resources for EOSI benefits face liquidity risks at payout and, in cases of bankruptcy, workers are left unprotected. Effective access to EOSI is also hindered by a lack of effective grievance mechanisms, and access to justice is limited for the most vulnerable workers. The 2023 ILO policy paper analyzed EOSI schemes in the GCC countries and proposes policy reform solutions in line with core principles enshrined in international social security standards.

In the context of a new regional momentum with social protection reforms that have the potential to extend rights of migrant workers, Oman’s newly approved legislation radically reshapes the social protection system in the Sultanate and provides for the gradual inclusion of migrant workers in national social insurance cash benefits for maternity and paternity, sickness and employment injury insurance on same terms as Omani national workers. It also establishes a national provident fund to replace the current End-of-Service Indemnities system. A new provident fund, which will be managed by the unified national social protection agency, will collect employers’ contributions and administer benefits to non-Omani workers in case of retirement, death and disability and upon return to countries of origin.

A similar approach for the establishment of a national provident fund was legislated in Bahrain in 2022 and operationalized in 2023, whereby the government of Bahrain promulgated a new EOSI fund for non-Bahraini workers in the private sector. While EOSI entitlements will continue to be in line with the set provisions of the Labour Code, the reform introduces a new financing mechanism through monthly contribution to the Social Insurance Organization.

In October 2023, the UAE Cabinet announced an optional pension scheme to replace the EOSI system for employees in the private sector and free zones. Under the existing EOSI scheme, private sector employees, including migrant workers, receive directly from the employer a multiple of their final wage as lump sum at the end of their service. As of November 2023, employers who opted for the new system are instead required to pay an equivalent monthly contribution into the new savings scheme. At the end of service, employees receive the accrued savings, and investment returns from their participation in the investment fund. The new system is optional for employers to join and is managed by private savings and investment funds overseen by the Securities and Commodities Authority in coordination with the Ministry of Human Resources and Emiratisation (MOHRE).

In Kuwait and Qatar, efforts are made to inform dialogue around the limitations of current EOSI schemes and the identification of appropriate policy solutions in line with international standards and best practices.

The trends and mobility figures imply that the South Asia – Gulf corridor continues to remain of critical importance for international labour migration and draws attention to the necessity to improve social protection coverage and access for migrant workers and their families. While the GCC governments and employers hold the primary responsibility for strengthening access to social protection for migrants working in their territory, governments in countries of origin also have key roles to play in ensuring robust provisions for migrant workers at home but also advocating for the rights of their nationals in destination countries and the negotiations of bilateral and multilateral labour and social security agreements.

For instance, in 2022, the Government of Nepal adopted the Social Security Schemes Operating Procedure (SS-SOP) for Workers in Foreign Employment and Self-Employed in Another Country. This is a unilateral measure based on the contribution by migrant workers themselves. Workers going for foreign employment can register to the scheme on a voluntary basis during the process of obtaining their labour permit, and, while contributing, have access to work injury (including medical care), disability, survivors, and old age protection.

The Government of Sri Lanka established the National Policy on Migration for Employment and its National Action Plan 2023-2027 (NPME/AP 2023-2027) that intends to establish social security systems for migrant workers in-country in collaboration with host country governments and employers. Among others, the policy intends to develop a comprehensive social security/ pension scheme programme for migrant workers and include provisions for social security in bilateral labour agreements/MOUs.

Objective

The purpose of this assignment is to generate empirical evidence and policy insights into the old-age security of migrant workers and their families and the socio-economic implications of EOSI across different economic sectors and income levels and considering both scenarios of remaining in the destination country and returning to the country of origin. The assignment will focus on one selected GCC country, to be determined by the consultant. The objective is to support informed decision-making and contribute to policy dialogue on extending social protection to migrant workers in line with international labour standards.

Specific Objectives:

• To assess the experiences and challenges, preferences and plans related to the old-age protection for migrant workers and their families across different economic sectors and income levels
• To analyse the socio-economic impact of end-of-service indemnity (EOSI) schemes on the retirement outcomes of migrant workers, considering both scenarios of remaining in the destination country and returning to the country of origin.
• To identify barriers and enabling factors for income security in old age across different economic sectors and income levels.
• To assess coping strategies used by migrant workers and their families upon retirement or return to the country of origin.
• To explore the relationship between national labour migration governance and retirement security in the selected country and in countries of origin
• To formulate policy recommendations aligned with ILO social security principles and good practices, from the perspective of both countries of destination and origin in the South Asia-Gulf migration corridor.

Scope of Work

The external collaborator shall undertake the following tasks:

• Country Selection: Select one GCC country for in-depth analysis and justify the choice based on policy relevance, data availability, or recent reform initiatives.
• Policy Analysis: Review and assess national legal and policy frameworks governing EOSI, labour rights, and retirement-related measures for migrant workers, with attention to variations across key economic sectors and income groups, where data allow.
• Literature Review: Review academic and grey literature on the retirement experiences of migrant workers’ access to EOSI entitlements, retirement preferences and experiences, from perspective of both country of destination and countries of origin
• Qualitative Research: Conduct interviews and/or focus groups with:
  • Former migrant workers who have returned to their countries of origin.
  • Migrant workers nearing retirement in the host country.
  • Families of migrant workers, where relevant.
• Data Analysis: Assess the socio-economic implications of social protection schemes for the income security and well-being of migrant workers and their families considering both scenarios of remaining in the destination country and returning to the country of origin.
• Recommendations: Formulate actionable, evidence-based recommendations for improving retirement outcomes for migrant workers, from perspective of both countries of origin and destination in the South Asia-Gulf migration corridor

Methodology

The study will employ a mixed-methods approach, including:

• Desk review: Analysis of laws, policies, ILO reports, and academic studies related to EOSI and retirement migration.
• Qualitative research: Conduct in-depth interviews and focus group discussions with migrant workers and their families, and diplomatic missions whenever possible regarding experiences and perceptions of retirement plans.

Deliverables

The collaborator is expected to produce the following outputs:

• Inception Report: Detailing methodology, research tools, and country selection justification
• Policy brief (3,000 words): A final analytical report including: Empirical findings on EOSI impacts on migrant workers in old-age and their families, Case narratives and stakeholder perspectives, Policy recommendations, and Annexes (e.g., interview guides, stakeholder lists, reference documents).

Timeline

The consultancy will span five months, with the following timeline:

Month

Activities

Month 1

Desk review, methodology finalization, and inception report

Month 2

Data collection (interviews, FGDs, policy documents)

Month 3

Data analysis

Month 4

Drafting of the policy paper

Month 5

Finalization of the paper

Required qualifications and experience

The external collaborator (individual) should have:

• Advanced university degree in social sciences, migration studies, social policy, or related fields.
• Proven experience in qualitative and policy research on social protection or labour migration.
• Familiarity with international social security standards and the ILO normative framework.
• Strong report writing skills and experience translating research into policy recommendations.
• Regional experience in the GCC or countries of origin of migrant workers is desirable.