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Saudi Arabia warns employers: Salary delays may lead to service suspensions

Saudi Arabia warns employers: Salary delays may lead to service suspensions

MHRSD has intensified efforts to ensure transparent and fair wage practices/Representative Image

Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has intensified efforts to ensure transparent and fair wage practices in the private sector. Under the Wage Protection Program, managed by the Mudad payroll compliance platform, unreasonable salaries, excessive deductions, and salary delays will now automatically trigger violation alerts and inspection visits, aiming to hold employers accountable and protect workers’ rights.TL;DR:

  • p]:pt-0 [&>p]:mb-2 [&>p]:my-0″> Violations such as missing wage records, basic wage errors, or excessive delays lead to automated inspection requests and possible suspension of business services.

Consequences for non-compliance

  • p]:pt-0 [&>p]:mb-2 [&>p]:my-0″> Job mobility for employees: Employees facing salary delays exceeding three months can legally transfer to a new employer, even without their current employer’s consent, regardless of permit status.
    • p]:pt-0 [&>p]:mb-2 [&>p]:my-0″> 2. What happens if an employer delays salary payments?
      Employers receive reminders starting on wage due date; after 20 days without payment or file submission, an inspection is triggered.
    • p]:pt-0 [&>p]:mb-2 [&>p]:my-0″> 4. What penalties face employers who violate wage protections?
      Service suspensions affecting work permit issuance and renewal start after two months of delays, with total service suspension after three months

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