Saudi Arabia enters a new phase of labor market regulation tomorrow, January 1, 2026, with the mandatory implementation of a service for transferring domestic workers' salaries via approved digital wallets. This step comes in implementation of decisions by the Ministry of Human Resources and Social Development, which aim to govern and officially document financial transactions in the domestic worker sector.
The Ministry confirmed, via its official platform and the "Musaned" application, that this is the fifth and final phase, meaning the decision applies to all domestic workers in the Kingdom without exception. This service allows employers to instantly transfer and document salaries through the "Worker Salaries" icon in various digital wallets. The transaction is then directly reflected in the "Musaned" system as official proof of payment, all without any additional fees, to encourage compliance.
This decision comes within the framework of the Kingdom's ongoing efforts to develop the domestic worker sector. This measure represents an extension of the "Wage Protection Program" initiatives, which were previously implemented successfully in private sector establishments. The new system aims to safeguard the contractual rights of both parties. On the one hand, it guarantees domestic workers the regular and timely receipt of their wages, while on the other hand, it provides employers with conclusive legal proof that protects them from any malicious lawsuits or labor disputes that may arise in the future regarding salary payments.
On the economic and technological front, this step reflects the Kingdom’s commitment to accelerating the pace of digital transformation within the objectives of Saudi Vision 2030, which seeks to reach a 70% cashless society by 2030. Digital salary transfer also contributes to enhancing financial inclusion for expatriate workers, giving them the opportunity to benefit from advanced banking and financial services, which increases the attractiveness of the Saudi labor market regionally and internationally.
It is worth noting that the ministry had been implementing this decision gradually, through well-planned phases that began some time ago, to ensure that society and beneficiaries were prepared for this shift. This measure is expected to contribute to eliminating the phenomenon of undocumented cash payments and reducing labor disputes, which previously occupied a significant portion of labor courts and dispute resolution committees, thereby strengthening the stability of the contractual relationship between employers and employees.
