Saudi Arabia Mandates Official Salary Transfers for Domestic Workers: Key Changes Ahead

Starting January 1, 2026, Saudi Arabia will mandate that all employers transfer domestic workers’ salaries through official channels. This significant move aims to protect the rights of domestic workers and enhance the overall transparency and reliability of salary payments.

Enhancing Workers’ Rights and Salary Transparency

The Saudi Ministry of Human Resources and Social Development announced that, from January 1, 2026, all domestic worker salaries must be transferred electronically via approved channels. This initiative is designed to ensure transparency in salary-related contracts, simplify payment procedures, and safeguard the rights of workers.

Implementation through the Musaned Platform

The Musaned platform will serve as the primary tool for electronic salary transfers, integrating various approved banks and digital wallet services. This system not only protects workers’ rights but also ensures regular and secure payments, enhancing service quality within the domestic worker sector. Additionally, it allows workers to transfer funds safely to their families abroad.

Benefits for Both Employers and Workers

This new system presents numerous benefits:

• Verification of Salaries: Domestic workers can independently verify their salary payments.
• Streamlined Processes: Simplified procedures for ending contracts or traveling.
• Regular Payments: Guaranteed timely and consistent wage payments.
• Employer Efficiency: Employers will experience reduced error rates and improved accountability in salary disbursements.

If workers prefer, they can withdraw their wages in cash through approved channels using a Mada card.

Phased Rollout of Salary Transfers

The decision is part of a phased rollout that began on July 1, 2024. The implementation stages include:

• Phase 1: Initiated for first-time domestic workers.
• Phase 2: Targeted employers with four or more domestic workers, launched in January 2025.
• Phase 3: Launched in July 2025 for employers with three or more workers.
• Phase 4: Effective from October 1, 2025, applies to all employers with two or more domestic workers.

Compliance with Wage Protection System

Under the Musaned program, employers must pay the agreed contractual wage at the end of each Hijri month unless a different written arrangement is made. Workers not covered by the Wage Protection System may still receive cash payments or checks, provided there’s proper documentation.

Conclusion: A Modernized Wage Management System

By mandating salary transfers through official channels, Saudi Arabia aims to build trust between employers and domestic workers, ensure timely payments, and modernize the wage management system for the domestic sector. This initiative is a crucial step towards better working conditions and financial security for domestic workers in the Kingdom.