From 1 January 2026, all salary payments to domestic workers in Saudi Arabia must be paid electronically through the Wage Protection System (WPS) administered through the Musaned platform. Cash payments are no longer legal. This is the most significant regulatory change for Saudi households hiring maids, nannies, cooks, or drivers in five years.
What changed
Until 31 December 2025, Saudi families could pay their domestic workers any way they agreed — cash, bank transfer, mobile wallet, or a mix. Many households paid cash by default because it was easier than setting up a bank account for the worker.
From 1 January 2026, the Saudi Ministry of Human Resources and Social Development (HRSD) requires all such payments to flow through the Wage Protection System via the worker's registered bank account. The mechanics: you initiate the payment in Musaned, the bank transfers it electronically, the worker receives an SMS confirmation, and HRSD logs every transaction.
Why HRSD made this change
Three reasons drove the policy. First, wage disputes between sponsors and workers were the single largest category of complaints to Saudi labour offices in 2024-2025 — many of them about cash payments where neither party kept records. Second, HRSD wanted to integrate domestic-worker wages into the broader WPS system that already covered formal-sector employees. Third, bilateral agreements with sending countries (Philippines, Indonesia, Ethiopia) increasingly required documented salary trails as a condition of new worker placements.
What families need to do
If you already have a Saudi domestic worker:
- Open a Saudi bank account for the worker if she does not have one. Most banks open these free of charge for domestic workers — bring her Iqama and your sponsor ID.
- Register the worker's bank account in your Musaned account within 30 days.
- Switch your monthly salary payment to electronic transfer through Musaned, starting with the next monthly cycle.
If you are hiring a new worker:
- The Musaned platform now includes bank account setup as part of the standard worker onboarding flow.
- The recruitment office will guide both you and the worker through registration.
- From day one, the first salary payment must be electronic.
Consequences of non-compliance
HRSD monitors WPS payments monthly. The penalties for non-compliance are:
- SAR 5,000-10,000 fine per missed or late payment
- Suspension of the sponsor's right to recruit additional workers
- For repeat violations, escalation to the labour office and potential cancellation of the worker's sponsorship
The penalties are real, but the bigger risk is that recurring non-compliance can block you from hiring future workers — even if you settle the fines.
Why this is good for sponsors too
Beyond compliance, the WPS mandate protects sponsors. Cash payments left no record, which meant disputes about whether or when payment happened were impossible to settle. Now every payment has a bank record. If your worker later claims she was unpaid, the WPS log proves you paid. That alone is worth the slight extra friction.
The full Musaned guide
For the complete 2026 process — including fees, the 7-step hiring flow, dispute resolution, and how Musaned compares to UAE Tadbeer — read the full Musaned 2026 Guide (also in Arabic).