Saudi Arabia New Labour Law

The Saudi labour authority has announced that a new phase has been set into place in accordance with the plan. This new phase will obligate the employers of domestic workers to disperse their salaries using digital accounts and in accredited banks by the Ministry of Human Resources.

The decision came from the Musaned platform which is responsible for the domestic labour affairs in KSA. From 1 January, the second phase of the new scheme has been implemented for employers with over four house workers in Saudi. This important step will ensure the rights of the parties in the contract. Moreover, the first phase was rolled out in July last year in which the employers were directed to pay salaries via the digital/e-wallet accounts for domestic workers. The action was taken to reduce cash transactions and support the workers by ensuring a safe and reliable working environment for house labour. The domestic workers include housekeepers, drivers, maids, cleaners, guards, live-in nurses, nannies etc.

The system will be applicable on employers with three or more workers by July next year and from 1 October for those having two workers. The fifth and also the final phase of the scheme is planned to be implemented by January 2026 which will cover all the domestic labour across the KSA.

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