Saudi Arabia to mandate e-salary system for domestic workers

Saudi Arabia will begin enforcing a mandatory system for paying the salaries of all domestic workers through official electronic channels starting January 1, 2026, a move aimed at strengthening wage protection and increasing transparency in employment relationships.

The decision, announced by the Ministry of Human Resources and Social Development, requires employers to transfer salaries via approved platforms rather than in cash. 

The measure aims to safeguard the financial rights of domestic workers and ensuring clearer, more accountable contractual arrangements between employers and employees.

Under the system, salary payments will be processed electronically through the Musaned platform, using recognised channels such as participating banks and digital wallets. 

The ministry said this approach would enhance the reliability of wage payments, reduce disputes, and streamline administrative procedures, while also contributing to the professionalisation and development of the domestic worker sector.

For domestic workers, the electronic transfer system provides documented proof of salary payments, simplifies procedures related to contract termination or travel, and ensures that wages are paid regularly and securely.

Workers will also be able to transfer their earnings to family members abroad through the same official channels. Where cash withdrawals are preferred, salaries can be accessed via approved outlets using a Mada card issued to the worker.

The policy, according to Okaz newspaper, has been rolled out in phases since mid-2024. The first phase, launched on July 1, 2024, applied to domestic workers arriving in Saudi Arabia for the first time, with the aim of reducing cash transactions and improving the reliability of payments. 

A second phase, introduced in January 2025, extended the requirement to employers with four or more domestic workers, followed by a third phase in July 2025 covering those with three or more. A fourth phase, which came into effect on October 1, targeted employers with at least two domestic workers.

From January 2026, the system will apply universally, covering all domestic workers regardless of the number employed by a household.

According to guidelines issued through Musaned, salaries must be paid at the end of each Hijri month in line with the amount stipulated in the employment contract, unless both parties agree otherwise in writing and in accordance with wage protection regulations.

For workers outside the Wage Protection System’s scope, salaries may still be paid in cash or by cheque with written documentation, unless the worker requests an electronic transfer.

Story by Gulf News