Saudi Arabia warns employers: Salary delay can cause service suspension
Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has intensified efforts to ensure transparent and fair wages in the private sector. Under the wage protection program, Mudad payroll compliance will trigger violation alerts and inspection trips, now managed by platform, improper salary, excessive deduction, and salary delay, which aims to declare employers accountable and protect workers’ rights.TL; Dr:
- The MUDAD system gives flags to employers who delay “inappropriate” wages, salary payment, or cut large pay.
- Violations such as missing wage records, basic wage errors, or highly delayed automated inspection requests and possible suspensions of business services are led.
- Workers can now move jobs without the consent of the employer if the salary is delayed in three months; Repeated delay resulted in service suspension for employers.
How does mudad compliance system works
The MUDAD platform acts as an official wage compliance monitor of Saudi Arabia, registered to track and ensures that all private sector salary is paid correctly and on time. Here is how the process works:
- Improper wages alert: If an employee is assigned a basic wages outside the general boundaries significantly or higher, then suspectedly low or high, the mudad system flags it as a potential violation.
- Basic wages and deduction checks: Alerts are also raised if the basic veg is not recorded for more than 90 days or if the deduction is more than 50% of an employee’s salary.
- Payroll Submission Deadline: Employers should submit wage protection files on time. If the files are delayed by more than 20 days due to payroll, the mudad makes an inspection request for the auto-Inter-Initiate employer.
- Automatic reminder: The employer receives the payment reminder once before, once a wage, a second reminder after 10 days, and a final warning on 15 days. On the 20th day, without presenting, system files for inspection.
Results for non-transportation
- Service suspension: If salary payment is being delayed for two months, most of the employers’ access to the services is suspended (in addition to renewal/issuing work permits). After a delay of three months, all services are stopped.
- Job dynamics for employees: Employees facing delays of more than three months can legally move a new employer, even without caring for their current employer, regardless of the status of permits.
- Employer Justification: Employers have 10 days to provide a valid reason for the salary delay in the system. Employees have three days to accept or reject justification; If no response is given, the system faces the employer’s explanation to process the explanation.
Regulators are part of the ongoing step towards increasing transparency in Saudi Arabia’s labor practices, better activists safety and compliance with international standards. Wage protection program not only tracks timely pay payment, but also checks the salary fairness and deduction practices, which helps employees, especially migrants and low -pay employees against wage exploitation.
Fasting
- 1. What does a violation alert trigger under Saudi Arabia’s Mudad program?
Inappropriate wages, more than 50%pay deduction, wage records missing, and salary payment delay in trigger violations in 20 days. - 2. What happens if an employer delays salary payment?
Employers receive reminders starting on the pay payable date; After 20 days without payment or file submission, an inspection is triggered. - 3. Can employees do jobs if their salary is delayed?
Yes, if salary payment is delayed for more than three months, employees can transfer a new employer without the consent of the current employer. - 4. Do the punishment face employers who violate wages safety?
Service suspension that issues work permits and affecting renewal starts after a delay of two months, with total service suspension after three months
