Saudi Arabia to Transfer Domestic Workers’ Salaries Directly to Bank Accounts from January 2026

Saudi Arabia, a popular destination for Indian workers, is introducing a major change in salary payments for domestic workers to enhance transparency and protect employees from exploitation.

The Ministry of Human Resources and Social Development has announced that, starting 1 January 2026, all domestic workers in the Kingdom will be required to receive their salaries through official electronic channels. This step aims to ensure reliable payments, reduce disputes, and support the overall development of domestic workers.

Currently, over 2.5 million Indians work in Saudi Arabia, many of whom are employed as domestic staff, including drivers, maids, gardeners, and security personnel, and often receive cash payments. Under the new rule, companies will no longer pay salaries in cash but must transfer wages through authorized banks or digital wallets using the Musaned platform.

The electronic salary system will provide domestic workers with documented proof of income, simplify procedures related to contract completion and travel, and allow workers to safely send money to their families. Workers will also have access to a Musaned-issued Mada card to withdraw cash when needed.

The e-salary system was first introduced in 2024 and is being implemented in phases. The first phase, which began on 1 July 2024, mandated that all newly arriving domestic workers receive their salary exclusively through the Musaned platform. According to Musaned guidelines, salaries must be paid at the end of each Hijri month unless both parties agree in writing to an alternative method.

This move is part of Saudi Arabia’s ongoing efforts to strengthen labor protections, improve transparency in domestic employment, and modernize payroll systems.