Saudi Arabia is actively implementing electronic payments. Last year, about 70% of retail transactions in the country were made using electronic payments. In the future this type of payment will grow rapidly. It was the first time that digital transactions exceeded cash transactions.Such a rapid shift from cash to digital transactions is associated with the country’s Vision 2030 initiative.
Transparent income and expenses
The introduction of electronic money transfers in labor markets around the world is transforming the relationship between employers and employees. Electronic transfers increase the transparency, convenience, and speed of financial transactions.
Remittances have many benefits for workers and employers, contributing to economic growth and improved working conditions. For employees, they expand access to financial products. For companies, digitization increases the efficiency of payroll management.
Electronic payment systems, such as the baggage security system in Saudi Arabia, improve the management of timely payments and prevent economic abuse and shadowing. They also reduce the number of contract defaults and strengthen the regulation of labor conditions. The transparency of such systems helps to increase employee trust in their employers.
In addition, the development of digital tools makes it easier for new workers to find jobs. The best tools for this are:
- Layboard.in is the most comprehensive job search platform in Saudi Arabia. It has a user-friendly interface, a variety of jobs, and a subscription option. In addition, candidates have the necessary support and receive useful advice, including articles on interview preparation and resume writing.
- LinkedIn is a very popular network for professional contacts, where you can find vacancies and connect with recruiters.
- NaukriGulf is a popular platform for job search in the region.
- Monster Gulf is an international platform with a section for the Gulf countries.
- Saudijobsearch is a local website specializing in job search in Saudi Arabia.
Thanks to government policy, Saudi Arabia is among the 10 fastest growing countries in e-commerce. The digital economy policy adopted in 2020 has led to the rapid development of digital platforms for businesses and startups and easier access to financial resources through digital tools.
Benefits for employees
Saudi Arabia’s transfer policy is already transforming the domestic labor market. These positive changes are felt especially by foreign workers: transparency is increasing and employee rights are being protected.
Starting January 1, 2025, employers with four or more employees will be required to transfer salaries electronically to the employee’s e-wallet. This measure should ensure timely payment of salaries and minimize labor disputes.
Since many employees in Saudi Arabia are foreign nationals, clear payroll records are kept to create a more secure environment. This will help solve the problem of wage theft and unregulated working conditions. In the descriptions of some vacancies on sites like Lаybord, employers even indicate the method of payment.
Banking services
The Central Bank of Saudi Arabia (SAMA) is an active initiator of the introduction of new financial services at all levels. Fintech companies that offer fast and secure international transfers can easily obtain a license to operate. This allows citizens and labor migrants to have access to convenient financial instruments for receiving salaries and making online transfers abroad.
Saudi Arabia also actively uses payment platforms and mobile applications. Some of the most popular are STC Pay and SADAD. They allow for fast domestic and international transfers. This is especially convenient for millions of foreign workers who need a stable and affordable way to transfer money to their families.
STC Pay mobile wallet has an impressive audience. More than 8 million users make transactions here. The app was developed by the telecommunications giant Saudi Telecom Company.
Another payment tool is SADAD. It is integrated into the systems of many banks in the country. You can use it to pay electricity, water, and telecommunication bills, as well as to pay government fees.
Additional benefits
Thanks to cooperation with international payment systems such as Visa, MasterCard, and financial giants such as Western Union and MoneyGram, Saudi Arabia has access to a global network for making transfers. This contributes to the country’s financial integration with other regions.
The Central Bank of Saudi Arabia (SAMA) has launched the Sari system, which allows for real-time interbank transactions. This system supports domestic and international transfers, thereby increasing the efficiency of cross-border payments.
There are several advantages to receiving paychecks through electronic services for expatriate employees in Saudi Arabia that make this option beneficial:
- Convenience and speed – electronic payments provide quick access to salaries from anywhere. Employees can receive money into their accounts in real time, making financial management much easier.
- Security – electronic services usually provide a high level of security, reducing the risk of cash loss or theft.
- International transfers – many electronic payment systems make it easy to transfer money abroad, which is especially useful for expats who want to send part of their income to family or friends.
- Financial inclusion – many systems allow users to open accounts without the need for traditional banking documents. This makes life much easier for those who have arrived in the country.
- Reduced transfer costs – electronic payments usually have lower fees than traditional banking transactions, which can save expats money.
In general, receiving a salary through electronic services is a convenient and profitable option for expatriate workers in Saudi Arabia. It is fast, affordable, and secure.
Conclusion
Saudi Arabia’s electronic remittance policy has already had a significant impact on the domestic labor market. This step has significantly increased the security and transparency of paying and receiving wages, which is in line with national economic goals. The country has created all the necessary tools for this. However, the success of economic changes always depends on effective implementation and adaptation by both employers and employees.