Saudi Arabia Introduces New Phase of Labor Wage Transfer System
New Regulations Require Employers to Use Digital Wallets for Salary Payments, Expanding in Phases

Saudi Arabia Implements New Phase in Digital Wage Transfer System for Domestic Workers
Cairo: As part of their continuous efforts to control wage transfers for domestic workers via digital wallets, Saudi labor authorities have formally begun a new phase. This project is a component of a phased implementation plan to update the kingdom’s domestic workers’ payment system.
Employers with more than four domestic workers are subject to the second phase of this required wage transfer scheme, which came into effect on January 1. The new rule requires employers to pay salaries using a digital wallet, which is intended to improve transparency, speed up transactions, and guarantee that employees receive their money on time. Musaned, a platform responsible for domestic workers’ issues in Saudi Arabia, is responsible for the scheme.
The new wage transfer system, which was introduced to protect the rights of both employers and workers, aims to reduce cash-based transactions while fostering a more secure and structured work environment for domestic workers. The system is expected to speed up payroll procedures and guarantee instant and traceable wage transfers by switching from cash to digital payment methods.
By July this year, employers employing three or more domestic workers will be required to adopt this digital transfer mechanism.
. The system will then expand further, with employers of two workers expected to adopt it by October 1, 2025. The final phase of this initiative will take effect in January 2026, at which point it will apply to all domestic workers in Saudi Arabia.
This change in legislation follows the June 2024 introduction of new rules by Saudi labor authorities that established the foundation for electronic wage transfers for domestic workers. These rules require employers to deposit wages into banks or e-wallets that have been authorized by the Ministry of Manpower.
The move is part of a larger effort to improve labor protections and establish a more structured and open system for allocating wages. Saudi Arabia employs a diverse range of domestic workers, including drivers, cooks, nannies, caretakers, housekeepers, maids, and cleaners.
When this salary transfer system is fully implemented, Saudi Arabia should promote greater accountability, ensure that domestic workers are paid fairly and on time, and follow international trends in digital financial management.