In a move aimed at protecting both employers and domestic workers in Saudi Arabia, the Musaned platform, which oversees domestic worker services, announced a significant change to the salary transfer system. Starting July 1st, 2024, only employers will be able to directly deposit salaries into the digital wallets of newly arriving domestic workers.
This new system prioritises transparency and financial security. Gone are the days of cash transactions or relying on family members for transfers. Instead, a designated ‘Domestic Workers’ Salaries’ icon within approved digital wallets will ensure secure and traceable payments. However, this streamlined system kicks in only after the worker’s residency permit is issued and all paperwork is finalised.
The digital wallet offers more than just basic transfers. Employers can now manage advance payments, partial salary adjustments, and regular monthly deposits – all within the secure digital platform. This shift towards electronic wage transfers promises a multitude of benefits. Not only will it reduce reliance on cash, but it will also create a more positive work environment for domestic workers and offer a reliable, streamlined system for salary payments.
Employers are still bound by the wage agreements outlined in the worker’s contract, with payments due at the end of each Hijri month. However, both parties can agree to a different schedule as long as it’s documented and complies with relevant wage protection regulations.
For workers covered by the Wage Protection Programme, transfers must be made through approved channels, typically banks. For those not covered by the programme, employers still have the option of cash or check payments. However, to ensure transparency, written documentation (or the worker’s payroll card) is required unless the worker chooses a specific bank account for deposits.
The Musaned platform, established by the Ministry of Human Resources and Social Development, Saudi Arabia, is much more than just a new salary transfer system. It serves as the official website for household services and domestic worker employment programs, clearly outlining the rights and duties of both workers and employers. This initiative represents a significant step forward for the domestic worker recruitment sector in Saudi Arabia. The platform offers a variety of services to not only enhance and simplify the recruitment process, but also to facilitate the resolution of complaints and disputes, ultimately protecting the rights of all parties involved.
