The Saudi Ministry of Human Resources and Social Development clarified important details regarding the decision mandating employers to transfer domestic workers' salaries through approved digital channels. While the ministry confirmed that the decision is effective for all workers starting this January, it also revealed a significant exception for a specific category of workers, granting employers flexibility in certain circumstances.
Details of the exception and trial period
The ministry clarified that employers are not obligated to transfer salaries via e-wallets or banking channels if the domestic worker is still in their probationary period , provided they have not yet received a residency permit. This clarification addresses potential obstacles employers may face in opening bank accounts or digital wallets for new workers who have not yet completed the necessary paperwork, thus facilitating financial transactions during the initial months of recruitment.
Gradual implementation of the decision
This measure culminates a phased approach implemented by the Ministry to ensure smooth compliance with the decision. The process began in July 2024 with mandatory transfers for newly hired employees. Subsequent phases included employers with four or more employees in early January 2025, those with three employees in July 2025, and those with two employees last October. Now, the requirement applies to all employers, regardless of their workforce size, with the exception of the aforementioned case.
The importance of the decision and its economic and legal context
This decision is part of the Kingdom's efforts to promote digital transformation in financial transactions and reduce reliance on cash, which aligns with the goals of Vision 2030. The Wage Protection System for domestic workers primarily aims to:
- Preserving rights: Documenting payroll processes ensures the rights of both the worker and the employer and reduces labor disputes related to wages.
- Transparency and reliability: Having a digital payroll record facilitates the process of proving payment before judicial authorities or labor dispute resolution committees in the event of any dispute.
- Improving the work environment: This regulation contributes to increasing the attractiveness of the Saudi labor market for domestic workers by ensuring the regularity of salaries and the ease of transferring them to their countries.
Through the “Musaned” program and approved digital wallets, the Ministry of Human Resources seeks to fully automate the recruitment and domestic worker sector, providing a safe and stable work environment for all parties and enhancing the Kingdom’s international standing in the field of protecting the rights of expatriate workers.
