Living in Saudi Arabia
Unreasonable Wages and Salary Delays Trigger Violations Under Mudad System
The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia has announced that assigning employees unreasonable wages—whether excessively low or high—will trigger violation alerts within the Wage Protection Program. This initiative aims to ensure fair and timely wage practices in the private sector.
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Key Points of the Mudad System
Wage Alerts
- Unreasonable Wages: Wages that are deemed illogical compared to other recorded data will generate alerts in the employer’s violations record on the Mudad platform.
- Excessive Deductions: Alerts will also arise if salary deductions exceed 50% of a worker’s wage.
- Wage Recording Delays: If a worker’s basic wage has not been recorded on Mudad for more than 90 days, this will also trigger violations.
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Other Violations
Violations include:
- Failure to enter the basic wage in designated fields.
- Failure to pay wages on time.
- Lack of records for wage disbursement.
Compliance Procedures
- Inspection Triggers: If private sector establishments delay submitting wage protection files by more than 20 days, inspection visits will be initiated.
- Reminder System: Mudad will automatically send reminders to employers as follows:
- First reminder when wages are due.
- Second notification after 10 days.
- Final warning on the 15th day.
- If no file is submitted within 20 days, an inspection request is triggered.
Delayed Salary Justification
- Employers have 10 days to justify any delayed salary payments.
- Employees have 3 days to accept or reject the justification in the system.
- If no response is received, the system will process the employer’s explanation automatically.
Consequences for Delayed Payments
- Companies that delay salary payments for two months will face a suspension of all services, except for issuing and renewing work permits.
- If delays exceed three months, all services will be suspended.
- Employees will have the right to transfer to a new employer without the current employer’s consent, even while their work permit remains valid.
These measures aim to enhance compliance with wage protection regulations and ensure fair treatment of workers in the Saudi labor market.
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