Saudi Arabia: Starting July 1, New Domestic Workers' Salaries To Be Transferred Digitally Only
The Musaned domestic workers services platform has announced that starting from 1 July 2024, the salaries of domestic workers arriving in Saudi Arabia for the first time will deposited into their digital wallets. This initiative aims to streamline salary transfers and ensure financial security for these workers.
According to reports from the Saudi Gazette, the Musaned platform, under the Ministry of Human Resources and Social Development (HRSD), stated that only employers can transfer salaries at the end of each Hijri year. The salary transfer will be facilitated through the Domestic Workers' Salaries icon within approved digital wallets.
In August last year, the ministry introduced a service allowing domestic workers to transfer between individual employers through the Musaned platform. This service is part of ongoing efforts to enhance recruitment practices in Saudi Arabia.
The digital salary transfer can commence once the domestic worker's residency permit (iqama) is issued and documentation procedures are completed. The platform clarified that neither the employer’s wife nor family members are permitted to make these transfers. This restriction is due to the digital linkage of worker data with the employer.
Additionally, the new service allows for advance salary transfers, partial advance payments, and adjustments in salary amounts directly to the workers' digital wallets. This electronic method aims to reduce cash transactions, enhance the work environment for domestic workers, and facilitate quick, easy, and reliable salary payments.
Wage Agreement Compliance
The Musaned platform emphasized that employers must adhere to the wage agreed upon in the labor contract. Salaries should be paid at the end of each Hijri month unless both parties agree otherwise in writing. This must comply with wage protection regulations and instructions.Regarding bank transfers, if a domestic worker falls under the Wage Protection Program category, salary transfers must be made through approved channels, including banks. If not, employers can pay wages in cash or by check, provided it is documented in writing or through a payroll card unless the worker prefers a specific bank account transfer.
Ensuring Financial Rights
The platform highlighted that using the Domestic Worker Salaries icon ensures both domestic workers' and employers' financial rights are preserved. Employers can transfer monthly salaries through payment channels linked to the Wage Protection Initiative and save these salaries on the Musaned platform.
The Ministry of Human Resources and Social Development established Musaned as its official website for household services and home employment programs. It outlines the rights and duties of both workers and employers. This initiative aims to develop Saudi Arabia's recruitment sector by providing multiple services to improve and facilitate recruitment processes and resolve potential disputes between contracting parties while protecting their rights.
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