The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia is tracking all unreasonable employee wages by setting up violation alerts under the Wage Protection System.

Through this alert, any wage whether higher or lower than the recorded amount, will trigger the violation alert system.

The Ministry explained, “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.”

“..alerts will also be generated in cases where salary deductions exceed 50 percent of a worker’s wage or if a worker’s basic wage has not been recorded on Mudad for more than 90 days,” it added. 

The Ministry also outlined additional violations, including failing to enter the basic wage in the designated fields, failing to pay the wage, or not maintaining any record of wage disbursement.

“Inspection visits will start if private sector establishments delay submitting their wage protection files for over 20 days,” it stated.

The Mudad platform, an automated system in place to manage payroll compliance, will submit a request to the Inspection Department to visit all reported non-compliant companies.

The process begins when the wages are due, with the platform sending a first reminder to the employer, followed by a second notification after 10 days. A final warning will be sent to the employer on the 15th day, and if no file is submitted within 20 days, the Inspection Department will be alerted to conduct an inspection. 

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Mudad said, “Employers have 10 days to explain delayed salaries. Employees then have three days to accept or reject the explanation, and if they don’t respond, the system will accept it automatically.”

Some of the additional guidelines issued by the HR Ministry are: 

• Employers that delay wage payments for two months will have all services suspended except for issuing and renewing work permits. 
• If the delay exceeds three months, all services will be suspended. 
• Employees will also be allowed to transfer to a new employer without their current employer’s consent, even if their work permit is still valid.