[Saudi Arabia] Unreasonable wages and delays will trigger violations under Mudad system

Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has announced that assigning an employee an unreasonable basic wage (too low or too high) will trigger violation alerts under its Wage Protection Program, Saudi Gazette reports.

The program’s latest compliance guide states that such wages will appear as alerts in the employer’s violations record on the Mudad platform if deemed illogical when compared to other recorded data.

The ministry reportedly confirmed that alerts will also be generated in cases where salary deductions exceed 50 per cent of a worker’s wage or if a worker’s basic wage has not been recorded on Mudad for more than 90 days.

Other violations include failing to enter the basic wage in designated fields, failing to pay the wage, or lacking any record of wage disbursement.

The ministry added that inspection visits will be initiated if private sector establishments delay submitting their wage protection files by more than 20 days.

The Mudad platform manages payroll compliance in the Kingdom. It will automatically submit a request to the Inspection Department to visit noncompliant companies.

The procedure starts when wages are due. Mudad sends a first reminder to the employer, followed by a second notification after 10 days.

A final warning is reportedly issued on the 15th day. If no file is submitted within 20 days, an inspection request is triggered.

Mudad stated that employers have 10 days to justify delayed salary payments. Employees then have three days to accept or reject the justification in the system. If no response is received from the employee, the system automatically processes the employer’s explanation.

Under existing ministry regulations, companies that delay salary payments for two months will face a suspension of all services except for issuing and renewing work permits. For delays exceeding three months, all services will be suspended. In addition, employees will be permitted to transfer to a new employer without the current employer’s consent, even if their work permit remains valid.

Source: Saudi Gazette

Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has announced that assigning an employee an unreasonable basic wage (too low or too high) will trigger violation alerts under its Wage Protection Program, Saudi Gazette reports.

The program’s latest compliance guide states that such wages will appear as alerts in the employer’s violations record on the Mudad platform if deemed illogical when compared to other recorded data.

The ministry reportedly confirmed that alerts will also be generated in cases where salary deductions exceed 50 per cent of a worker’s wage or if a worker’s basic wage has not been recorded on Mudad for more than 90 days.

Other violations include failing to enter the basic wage in designated fields, failing to pay the wage, or lacking any record of wage disbursement.

The ministry added that inspection visits will be initiated if private sector establishments delay submitting their wage protection files by more than 20 days.

The Mudad platform manages payroll compliance in the Kingdom. It will automatically submit a request to the Inspection Department to visit noncompliant companies.

The procedure starts when wages are due. Mudad sends a first reminder to the employer, followed by a second notification after 10 days.

A final warning is reportedly issued on the 15th day. If no file is submitted within 20 days, an inspection request is triggered.

Mudad stated that employers have 10 days to justify delayed salary payments. Employees then have three days to accept or reject the justification in the system. If no response is received from the employee, the system automatically processes the employer’s explanation.

Under existing ministry regulations, companies that delay salary payments for two months will face a suspension of all services except for issuing and renewing work permits. For delays exceeding three months, all services will be suspended. In addition, employees will be permitted to transfer to a new employer without the current employer’s consent, even if their work permit remains valid.

Source: Saudi Gazette