New phase in labour wage transfer goes into effect in Saudi Arabia

Cairo: Saudi labour authorities have announced that a new phase has come into effect as part of a gradual plan obligating employers of domestic workers in the kingdom to transfer their salaries through official digital wallets.

The Musaned platform, in charge of domestic labour affairs in the kingdom, has said that starting from January 1, the second phase of the mandatory scheme has taken effect for the employers of more than four house workers.

The step aims to preserve the rights of the parties in the contractual relationship, according to Musaned.

The system partially took effect last July when it became mandatory for employers of new domestic workers in Saudi Arabia to deposit their wages into the e-wallets with the aim of reducing cash transactions, improving the work environment for house labour, and facilitating the process of paying salaries quickly, easily and reliably.

For employers, who have three workers or more, the system will apply to them as of next July; and for those having two workers, it will go into effect as of October 1.
The fifth and final phase of the system will be implemented in January 2026, when it will include all domestic workers in the kingdom.

Last June, Saudi labour authorities announced regulations for the electronic transfer of house workers’ wages.

The rules stipulate that the salary should be transferred by the employer via e-wallets and the banks accredited by the Ministry of Human Resources.
Domestic workers in Saudi Arabia include housekeepers, drivers, housemaids, cleaners, cooks, guards, farmers, live-in nurses, tutors and nannies.