Saudi Arabia: Employers with four or more domestic workers now must transfer salaries to digital wallets
The new requirement aims to streamline and secure salary payments for domestic workers
Dubai: Effective January 1, it will be mandatory for employers with four or more domestic workers to transfer salaries to their digital wallets, Saudi Arabia’s Musaned domestic workers services platform has announced.
This new requirement aims to streamline and secure salary payments for domestic workers.
Under the Ministry of Human Resources and Social Development (MHRSD), the Musaned platform has also recently mandated that employers of new domestic workers arriving in Saudi Arabia for the first time must deposit salaries into their digital wallets starting July 1, 2024.
Employers can access the Domestic Workers’ Salaries icon within the approved digital wallets to make these deposits.
This service allows for the transfer of advance salaries, partial salary payments, and any necessary salary adjustments directly to the workers’ digital wallets.
The advantages of using electronic channels for wage transfers include reducing cash transactions, improving the work environment for domestic workers, and facilitating quick, easy and reliable salary payments.
The platform emphasised that the wage must be the amount agreed upon in the labour contract and should be paid at the end of each Hijri month unless a different arrangement is agreed upon in writing by both parties.
This must comply with the regulations and instructions regarding wage protection.
Regarding the transfer of salaries through banks, Musaned clarified that if the worker falls under the Wage Protection Program, the transfer must be made through approved channels, including bank accounts. For workers not in this category, employers may pay wages in cash or check, provided it is documented in writing or through the domestic worker’s payroll card, unless the worker prefers a specific bank account transfer.