Saudi Arabia has announced that salaries for all domestic workers will be paid through banks starting January 1, 2026, marking the final stage of a nationwide wage protection initiative. The decision was confirmed by Saudi Ministry of Human Resources and Social Development and is part of broader efforts to regulate wage payments, enhance transparency, and strengthen protections for workers in the domestic labour sector. Once fully implemented, the policy will require sponsors across the Kingdom to use formal banking channels for salary disbursement, ensuring that payments are documented and traceable.
According to ministry officials, the bank based salary requirement has been introduced through a phased approach to allow both employers and workers to gradually adapt to the new system. The first phase of the wage protection system was launched in July 2024 and applied to domestic workers entering Saudi Arabia for the first time on new visas. Under this phase, sponsors were required to open bank accounts and transfer salaries electronically, replacing informal cash payments. The initiative was designed to address long standing challenges related to delayed wages and lack of proof in payment disputes, which have historically affected domestic workers.
The second phase expanded the scope of the regulation to include sponsors employing more than four domestic workers. This step was aimed at larger households and employers with higher workforce numbers, where wage management complexities are often greater. Building on this, the third phase was initially scheduled for July 2025 but officially launched in October 2025, covering sponsors with two or more domestic workers. Each phase introduced incremental compliance requirements, allowing authorities to monitor adoption levels and address operational challenges before expanding coverage further.
With the final phase coming into effect on January 1, 2026, the wage protection system will apply to all categories of domestic workers without exception. This includes housekeepers, drivers, caregivers, cooks, and other household staff, regardless of the number employed by a sponsor. Officials stated that mandatory bank transfers will help prevent wage disputes by creating clear payment records, ensuring salaries are paid on time and in full. The system also aims to protect sponsors by providing documented proof of payment, reducing the risk of misunderstandings or legal conflicts related to salary obligations.
Saudi Ministry of Human Resources and Social Development emphasized that the initiative forms part of wider labour reforms focused on improving working conditions and aligning employment practices with international standards. By integrating domestic workers into the formal financial system, the policy supports financial inclusion while reinforcing labour protection mechanisms. Authorities noted that the wage protection system will also enable better oversight and data driven monitoring of salary practices across the domestic labour market, helping regulators identify and address non compliance more effectively.
The move reflects Saudi Arabia’s ongoing efforts to modernize its labour framework and promote fair employment practices across all sectors. By mandating bank based salary payments, the Kingdom aims to ensure greater accountability, transparency, and trust between workers and employers. The ministry indicated that awareness campaigns and support services will continue to help sponsors and domestic workers comply with the new requirements as the final phase comes into force at the beginning of 2026.
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