Saudi Arabia Enhances Wage Protection Oversight with New Employer Alerts

Key Point 

• Saudi Arabia enforces stricter wage compliance through a digital payroll platform 

Wage Protection Program Update 

Saudi Arabia rolled out enhanced enforcement measures under its Wage Protection Program to ensure fair and timely salary payments across the private sector. The updates leverage the ministry’s digital payroll compliance platform to monitor employer practices and flag irregularities. 

Key measures include the following:  

• Authorities will flag employers who report illogical or inconsistent salaries, apply deductions exceeding 50% of wages, or fail to record wages for over 90 days.
• The system will issue automated reminders at 10 and 15 days for delayed wage payments, with inspections triggered after 20 days of noncompliance. 
• Employers must justify payment delays within 10 days, and employees must respond within three days before the system automatically processes the employer’s explanation.
• Authorities will impose service restrictions on companies that delay wages for two consecutive months. If the delays continue for three months, they will suspend services and allow affected employees to transfer to new employers without needing consent.

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