Latest news with #Mudad
Time of India
2 days ago
- Business
- Time of India
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: The Mudad system flags employers who assign 'unreasonable' wages, delay salary payments, or make large salary deductions. Violations such as missing wage records, basic wage errors, or excessive delays lead to automated inspection requests and possible suspension of business services. Workers can now transfer jobs without employer consent if salaries are delayed over three months; repeated delays result in service suspension for employers. How the Mudad compliance system works The Mudad platform acts as Saudi Arabia's official wage compliance monitor, registered to track and ensure that all private sector salaries are paid correctly and on time. Here's how the process works: Unreasonable wage alerts: If an employee is assigned a basic wage significantly outside normal ranges, either suspiciously low or high, the Mudad system flags it as a potential violation. Basic wage and deduction checks: Alerts are also raised if the basic wage is not recorded for more than 90 days or if deductions exceed 50% of an employee's salary. Payroll submission deadlines: Employers must submit wage protection files on time. If files are delayed more than 20 days after payroll is due, Mudad auto-initiates an inspection request for the employer. Automated reminders: The employer receives a first payment reminder once wages are due, a second reminder after 10 days, and a final warning on day 15. On the 20th day without submission, the system files for inspection. Consequences for non-compliance Service suspension: If salary payments are delayed for two months, the employer's access to most ministry services is suspended (except for work permit renewal/issuance). After three months of delay, all services are halted. 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. Employer justifications: Employers have 10 days to provide a valid reason for a salary delay in the system. Employees then have three days to accept or reject the justification; if no response is given, the system defaults to processing the employer's explanation. The regulatory tightening is part of Saudi Arabia's ongoing move towards increased transparency in labor practices, better worker protections, and compliance with international standards. The Wage Protection Program tracks not only timely salary payments but also scrutinizes wage fairness and deduction practices, helping safeguard employees—especially expatriates and low-wage staff—against wage exploitation. FAQ 1. What triggers violation alerts under Saudi Arabia's Mudad program? Unreasonable wages, salary deduction over 50%, missing wage records, and salary payment delays over 20 days trigger violations. 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. 3. Can employees switch jobs if their salary is delayed? Yes, if salary payments are delayed for more than three months, employees can transfer to a new employer without current employer's consent. 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
Gulf Insider
2 days ago
- Business
- Gulf Insider
Saudi Arabia Flags Unreasonable Wages And Delayed Payments As Payroll Violations
Saudi Arabia's Ministry of Human Resources and Social Development has announced that assigning employees unreasonably high or low wages will now be flagged as a violation under the Kingdom's Wage Protection Programme. Updated guidelines empower the Mudad digital payroll platform to detect anomalies such as salaries far below or above prevailing levels, excessive deductions exceeding 50 per cent of pay, or basic wages not recorded in the system for over 90 days. Other violations include failure to record or pay wages or maintaining no documented record of payment. Inspection visits will be triggered if private-sector employers delay submitting wage protection files by more than 20 days. The Mudad system sends an initial reminder once wages are due, a second notice after 10 days, and a final warning on day 15. If files are still not submitted by day 20, inspections are initiated. Employers have 10 days to justify delays, after which employees have three days to accept or reject the explanation; if they do not respond, the employer's justification is automatically recorded. Under existing rules, companies delaying salaries for two consecutive months face suspension of ministry services, except for work permits. Delays exceeding three months result in full suspension, allowing employees to transfer to new employers without consent, even if their work permits remain valid. The updated framework aims to ensure timely and fair compensation for workers while strengthening compliance among private-sector employers.
Gulf Business
3 days ago
- Business
- Gulf Business
Saudi's salary system: Updates that private sector employers should know
Image credit: Getty Images The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia has issued a fresh directive under the Wage Protection Program (WPP), warning that assigning employees an illogical basic wage, either unusually low or excessively high, will now automatically trigger violation alerts on the Mudad platform. The updated compliance measures are designed to tighten oversight and promote fair wage practices across Saudi Arabia's private sector. Read- These alerts will be recorded in the employer's violation log if the wages deviate significantly from established patterns in the system. Additional red flags include Salary deductions exceeding 50 per cent of an employee's wage Failing to input the basic wage on Mudad for more than 90 days, The ministry also listed several other violations: omitting the basic wage from designated fields, withholding wage payments, or maintaining no record of wage disbursement. Inspections to be triggered by delayed file submissions If a private-sector establishment fails to upload wage files within 20 days of the due date, the Mudad platform will initiate an automatic request to the Inspection Department. This process kicks off with a reminder on the due date, a second reminder after 10 days, and a final warning on the 15th day. If the issue remains unresolved after 20 days, an inspection is officially triggered. To ensure transparency and fairness in the process, the following steps are followed when addressing delayed salary payments: Employers are granted 10 days to justify delayed salary payments. Employees have 3 days to accept or reject the employer's explanation via the Mudad system. If the employee does not respond within 3 days, Mudad will automatically accept the employer's justification by default. Noncompliant companies face escalating penalties. A two-month salary delay results in the suspension of all services except for issuing and renewing work permits. Delays extending beyond three months will lead to the suspension of all services. In such cases, employees are granted the right to transfer to a new employer without their current employer's approval, even if their existing work permit is still valid. Mudad and Khazna introduce 'Flexible Salary' option In a move to modernize payroll systems, the Mudad platform signed a cooperation agreement with Khazna Financial Technology Company in July 2025 to introduce a new product: Flexible Salary . This feature allows employees to access a portion of their earned wages before the official payday, offering them greater financial control. The initiative is seen as a game-changer in employee empowerment, aiming to reduce financial stress and improve productivity. It enables workers to withdraw a portion of their income for the days already worked, without having to wait until month's end, Leaders from both Mudad and Khazna emphasized that the new product supports Saudi Arabia's Vision 2030 by driving digital transformation in human resources and strengthening worker protections. The collaboration is also expected to improve the overall work environment by providing innovative financial solutions and enhancing employer-employee trust.
Saudi Gazette
4 days ago
- Business
- Saudi Gazette
Unreasonable wages, salary delays to trigger violations under Mudad system
Saudi Gazette report RIYADH — The Ministry of Human Resources and Social Development (MHRSD) has clarified that assigning an employee an unreasonable basic wage — whether too low or too high — will trigger violation alerts under Saudi Arabia's Wage Protection Program. According to the program's latest compliance guide, 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. The ministry said 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. Additional violations include failing to enter the basic wage in designated fields, failing to pay the wage, or lacking any record of wage disbursement. The ministry further stated that inspection visits will be initiated if private sector establishments delay submitting their wage protection files by more than 20 days. The Mudad platform, which manages payroll compliance, will automatically submit a request to the Inspection Department to visit noncompliant companies. The procedure begins once wages are due. Mudad sends a first reminder to the employer, followed by a second notification after 10 days. A final warning is issued on the 15th day. If no file is submitted within 20 days, an inspection request is triggered. Mudad also clarified that employers have 10 days to justify delayed salary payments. Employees then have three days to accept or reject the justification in the system. If no response is received from the employee, the system will automatically process the employer's explanation. Under existing ministry regulations, companies that delay salary payments for two months will face a suspension of all services 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 the current employer's consent, even if their work permit remains valid.
Saudi Gazette
4 days ago
- Business
- Saudi Gazette
MHRSD: Unreasonable wages for workers will be recorded on the employer's violations page
Saudi Gazette report RIYADH — The Ministry of Human Resources and Social Development (MHRSD) revealed that granting a worker an unreasonable basic wage will appear as alerts on the employer's violations page. The ministry explained in its Wage Protection Program guide that recording alerts on the violations page will also include deductions exceeding more than 50 percent of the worker's wage in the wage file, or if the worker's basic wage has not been recorded on the Mudad platform for more than 90 days. The worker's basic wages will be displayed on the violation alerts pages on the following circumstances: If wages are not recorded in the designated fields; if the worker is not actually receiving wages; if the worker has no record of receiving wages, or if the worker's wages have not been paid. Meanwhile, the ministry has decided to carry out inspection visits to private sector establishments if they delayed submitting their wage protection files for 20 days. The Mudad digital payroll and compliance program, under the ministry, will send a request to the Inspection Department to visit the establishments that have failed in submitting the file within the stipulated period of time. The ministry explained that the procedures begin when wages are due. The Mudad program will send an email notification to the establishment reminding it of the need to upload wage data through the program. After 10 days, another notification will be sent to establishments that have not submitted the file. The ministry noted that a final warning will be sent to employers who have not submitted their wage files, 15 days after the wages are due. If 20 days pass without a response, a request will be sent to the Inspection Department to make an inspection visit of the erring establishments. The Mudad platform announced that the period for establishments to justify the reason for delaying the payment of workers' salaries will be 10 days. It also granted employees a grace period of only three days to accept or reject salary justifications in the compliance system. The platform indicated that if an employee fails to provide a justification within the specified period, the justification submitted by the establishment's representative will be automatically processed. According to the ministry decision, if an establishment delays the disbursement of salaries for two months, it will be penalized by suspending all services except the issuance and renewal of work permits. If the delay exceeds three months, all services will be suspended. Additionally, the worker will be allowed to transfer his services to another employer without the approval of the current employer, even if his work permit is valid.
