Saudi Arabia launches 3rd phase of e-transfers for domestic workers

The Ministry of Human Resources and Social Development (MHRSD) has officially launched the third phase of its mandatory electronic salary transfer system for domestic workers, effective Tuesday, July 1. This phase applies to employers with three or more domestic workers and aims to ensure transparency, protect worker rights and improve efficiency in the domestic labour sector.

The initiative, which utilises digital wallets and transfers through approved banks via the Musaned platform, builds on earlier phases of the salary transfer mandate. The second phase, enforced from January 1, 2025, applied to employers with more than four domestic workers. The next stage will extend the requirement to those with two or more domestic workers starting October 1, 2025. Full implementation for all domestic workers is scheduled for January 1, 2026.

According to the ministry, this phased approach is designed to strengthen contractual obligations and simplify salary documentation and processing. The system benefits both employers and workers by providing official proof of payment, ensuring regular disbursement of wages and facilitating end-of-contract formalities. It also enables workers to securely transfer salaries to their families abroad.

The MHRSD emphasised that this service represents a key step in modernising the domestic labour sector and upholding the rights of all parties. The electronic salary transfer system is part of the broader Musaned platform, the ministry’s official digital portal for domestic labour recruitment and employment services.