Saudi Arabia has mandated that all employers transfer domestic workers’ salaries through official channels from January 2026 to enhance transparency and curb abuses like money laundering. Critics, however, question whether this reform addresses deeper flaws in the kafala system, especially amid scrutiny over the country’s hosting of the FIFA 2034 World Cup.
RIYADH — Saudi Arabia has mandated that all employers transfer domestic workers’ salaries through official channels starting from 1 January 2026, as confirmed by the Musaned platform.
This electronic payment system aims to protect wage rights, boost transparency, and simplify employer-worker relations, according to Arab News. The announcement, shared via Musaned’s X account, introduces payments through approved digital wallets and participating banks to ensure reliability, security, and consistency.
Lawyer Majed Garoub, quoted in Arab News, stated that the regulation would tackle persistent issues in employer-worker relationships, particularly disputes over unpaid wages.
“This regulation will significantly help resolve many problems that arise when domestic workers leave the country without proper verification of receiving their full rights,”
Garoub said. He explained that informal salary payments were common previously, often lacking documentation or signatures, complicating proof of payment for Saudi employers when workers filed claims after returning home.
Phased Implementation of the Regulation
The regulation has rolled out in stages, beginning with newly arriving domestic workers on 1 July 2024, as detailed in Arab News. It extended to employers with four or more domestic workers in January 2025, those with three or more by July 2025, and most recently to those with two or more from 1 October 2025. This phased approach, per the report, ensures smooth adoption across all employers.
Garoub, speaking to Arab News, highlighted broader legal and security benefits, noting that informal payments had enabled illegal practices.
“Workers might have falsely claimed unpaid wages or engaged in activities outside their employment,”
he added. Such funds could contribute to crimes like money laundering or terrorism financing, he said.
“By mandating official payment channels, this regulation protects the Saudi economy, national security, and international financial systems.”
The Musaned platform provides advantages for both sides: employers receive salary verification for end-of-contract procedures, while workers gain secure, timely payments and options to transfer earnings abroad or withdraw cash via Mada cards. Salaries under the Wage Protection System must use authorised channels, marking a step towards protecting rights and bolstering economic security, according to Arab News.
FIFA Human Rights Standards for Host Nations
FIFA requires host nations for events like the 2034 World Cup to uphold human rights, labour standards, transparency, and press freedom, as outlined in its Human Rights Policy and bidding regulations. These include due diligence on worker protections, non-discrimination, and freedom of expression, with independent assessments mandatory.
Amnesty International urged FIFA to enforce rigorous checks, highlighting risks to migrant workers under the kafala system, which binds workers to sponsors and enables abuses like passport confiscation and wage theft—issues the Musaned reform partially addresses but does not dismantle. Equal Times noted the kafala system’s persistence despite reforms, which grants employers control over job changes and exits, raising compliance doubts with FIFA’s labour rights mandates.
Labour Rights Concerns in Context
The Sport and Rights Alliance warned that Saudi Arabia’s bid overlooks migrant worker vulnerabilities. Hundreds of wage theft cases persist, even as Musaned’s system targets undocumented payments flagged by Garoub in Arab News. The New York Times Athletic reported ongoing exploitation risks for mega-projects. FIFA 2034 infrastructure will demand vast migrant labour, where electronic transfers alone may not prevent unsafe conditions or forced labour. ESPN covered a FIFA complaint over Saudi human rights abuses for the 2034 World Cup, citing labour gaps. Business & Human Rights Resource Centre echoed this, noting “serious shortcomings” addressing human rights in the 2034 World Cup bid.
Transparency and Governance Issues
The Guardian accused Saudi Arabia’s World Cup bid report by Clifford Chance of “whitewashing” rights abuses, linking Musaned’s government-run system to broader transparency concerns. Musaned’s platform, lacking independent oversight per Arab News, mirrors this: it verifies payments but not broader kafala enforcement. Lawyers claimed FIFA breaches its rules over the Saudi bid, questioning transparency in assessments. Amnesty criticised FIFA’s strategies, urging scrutiny of reforms like Musaned’s. BBC Newsround explained the controversy, linking labour and rights issues to hosting ethics.
Sportswashing and Ethical Hosting Debates
Critics frame Musaned’s reform as sportswashing—superficial changes to mask deeper issues ahead of 2034. Equal Times and Amnesty argue selective policies distract from press freedom curbs and women’s rights gaps, conflicting with FIFA’s standards. Civil society, fans, and human rights groups like the Sport and Rights Alliance question if Saudi Arabia meets accountability thresholds. Garoub’s comments on curbing money laundering via payments tie into security gains, but without kafala repeal, stakeholders doubt full compliance.
Implications for Stakeholders
International stakeholders face ethical dilemmas: FIFA risks credibility if 2034 proceeds amid unresolved concerns. Fans and civil society demand binding reforms, reparations, and monitoring. The Musaned policy, while progressive per Arab News, underscores the need for comprehensive change to align with global standards. Saudi officials tout it as protective, yet reports from Amnesty, The Guardian, and others highlight gaps. As 2034 nears, these developments fuel debates on whether mega-events should prioritise ethics over spectacle.