In a landmark move to safeguard the rights of domestic workers, Saudi Arabia has announced that all employers will be required to transfer salaries through official electronic channels starting January 1, 2026. This mandate, issued by the Ministry of Human Resources and Social Development, aims to enhance transparency, guarantee timely payments, and modernize the sector's wage management system.
Phased Rollout and Key Implementation Details
The decision is not an abrupt change but the culmination of a carefully planned, phased rollout that began over a year ago. The first phase was initiated on July 1, 2024, targeting domestic workers arriving in the Kingdom for the first time. The scope expanded in January 2025 to include employers with four or more domestic workers, followed by those with three or more in July 2025. The final pre-2026 phase commenced on October 1, 2025, covering households with two or more workers.
At the heart of this system is the Musaned platform, the official portal overseen by the Ministry. Employers must use this platform to transfer wages through approved channels, which include participating banks and digital wallets. The contractual wage must be paid at the end of each Hijri month, unless a different written agreement exists between the employer and the worker.
Benefits for Workers and Employers
The benefits of this digital shift are significant for all parties involved. For the hundreds of thousands of domestic workers in Saudi Arabia, the system provides multiple layers of protection and convenience.
- Transparency and Security: Workers can verify their credited salaries, ensuring they receive the full amount agreed upon in their contract.
- Timely Payments: The system enforces regular wage payments, reducing the risk of delays or non-payment.
- Financial Inclusion: It allows workers to safely and easily transfer money to their families abroad.
- Simplified Procedures: The process of ending contracts or finalizing procedures for travel becomes more straightforward with a clear digital payment history.
For employers, the move streamlines the payment process, reduces administrative errors, and improves accountability. If a worker prefers cash, they can still withdraw their wages using a Mada card through approved channels. For workers not yet integrated into the Wage Protection System, payment via cash, documented cheque, or salary card remains permissible unless the worker specifically requests a bank transfer.
A Step Towards Modernizing the Sector
This mandate represents a major step in Saudi Arabia's efforts to formalize and improve the working conditions within the domestic labor sector. By moving away from informal cash transactions, the Kingdom aims to build greater trust between employers and employees. The policy is designed to protect salary-related rights, ensure contract transparency, and ultimately contribute to improving the overall quality of service in the sector.
The January 2026 deadline for universal compliance sets a clear benchmark, signaling the government's commitment to leveraging technology for social good and workers' welfare. This initiative is part of a broader vision to modernize labor markets in line with the Kingdom's Vision 2030 reforms.
