Wage protectionPublication date: 21 September 2022 - 25 Safar 1444
The wages protection program observes the processes of the wages payment for all the labors (whether males or females) in the private sector establishments ( for both the Saudis & foreigners) in order to establish a data base that contains an updated information pertaining to the payment of the wages to the private sector labors, and to verify the extent of abidance of the establishments by paying the wages on time and with the amount previously agreed upon.
The implementation of the program has started since 22/07/1434H, corresponding to 1/06/2013, to include in its first stage , the giant size establishments (3,000 employees or more )as approbation period .Those establishments will be able to register and submit the wages payment files on the electronic services portal of the ministry, from the current June wage or salary whereas the obligatory implementation starts from the date of 25/10/1434H, corresponding to 1/09/2013, in accordance with the previously announced plan.
*The establishment s have the right to subscribe to the wages protection system in a probative way before their obligating date and this probative subscription will have no penalties or remarks consequences.The establishment s have the right to subscribe to the wages protection system in a probative way before their obligating date and this probative subscription will have no penalties or remarks consequences youtube.
|Obligatory Date of submitting the wages files to the ministry||Category (based on the number of the laborers according to the unified number of the establishment or the economic activity|
|Gregorian Date||Hijra Date|
3,000 laborers or more
The national schools of the economic activity (national schools for boys &girls , foreign or international schools , national schools for boys , national schools for girls , kindergarten ) irrespectively to their size.
|1/12/2013||28/01/1435H||2,000 laborers or more|
|1/03/2014||29/04/1435H||1,000 laborers or more|
|1/11/2014||8/01/1436H||500 laborers or more|
|1/02/2015||11/04/1436H||320 laborers or more|
|1/04/2015||11/06/1436H||240 laborers or more|
|1/06/2015||13/08/1436H||170 laborers or more|
|1/08/2015||15/10/1436H||130 laborers or more|
|1/11/2015||18/01/1437H||100 laborers or more|
|Will be determined later||1-10 labore|
The Benefits of the Program:
For the private sector laborers:
- The laborer ensures receiving his wage or salary on time & with the amount agreed upon without any delays , cheatings or fraud.
- Avoiding the disparity in the data registered by the employer from what has been previously agreed upon and is normally paid.
- Proving the employee's rights through the transparent information of the wages, and an approved wages data reference in case there are any disagreements regarding the wages.
For the employer (the establishment owner):
- Reducing the labor disagreements or troubles and providing a healthy work environment which encourages increasing the productivity.
- Making the labor dues or accruals on top of the priorities of the employer.
- Proving the payment of the labor wages without needing the receipt payrolls, and to retrench the malicious complaints.
- Providing the required precise information in order to enable the ministry of labor to release or publish statistics & data about the labor market in a way that serves all the parties including the employer himself(the establishment).
- Increasing the competitiveness in the labor market and attracting the national cadres or staff.
For the community:
- Providing a level of social welfare, psychological settlement or reassurance and a safe work environment.
- Ensure providing the social protection to all the private sector employees after retirement and in case of injuries via the compliance of the wages data registered in social insurances to the actual wages.
For security :
- Controlling the foreign labor wages and linking them with what suits the labor contracts in addition to evaluating the suspected banking cases.
- Reducing the risks and the thefts cases resulting from paying the labor wages in cash money.
- For economy:
- Contributing in increasing the productivity of the labor in the private sector because of ensuring his rights.
- Providing the opportunities of establishing economic entities and jobs for the Saudi citizens through retrenching the fictitious employers , the foreign loose or abandoned labor and the labor concealment.
- Providing actual or real updated information and data which reflects the condition of the private sector and its future requirements.
what shall I do?
The Requirements of Registering in the Wages Protection Program
1- The establishment has to open "bank accounts" or issuing "salary paying card" for all the laborers via the local banks. Salary Payment:
The bank accounts are the familiar known accounts through which all the banking services could be performed.
They are the ATM cash cards that are issued by the establishments through the banks with the names of laborers of those establishments and those cash cards only allow receiving the wages.
2- Registering the establishment in "the wages protection program " via the site of the ministry for the electronic services https://www.mol.gov.sa/securessl/login.aspx,
then registering the data of the laborers wages.
3- The establishment should update the laborers data on a periodical basis once any changes occur.
How does the Program Work?
The program observes the data of paying the monthly wages of the establishments and compares them to the registered data in the ministry of labor, and the ministry also observes the punctuality of the employer in the payment and with the amount that has been agreed upon in accordance with what has been registered in the wages protection system.
The Discipline :
- The employer is considered disciplined when he submits the wages data regularly and the ministry will calculate the discipline on the basis of , the number of the months in which the submission of the approved wages payment file to the ministry electronic services site, has delayed. But if the employer has submitted the file late and has already settled the wages on the determined time, then the system would recognize that on condition that the delay of submitting the file for each month should not exceed three months.
- The ministry of labor will also recognize the discipline of the employer by his payment to the amount of the wage that has been agreed upon, and that the wage is equal to the wage registered, by comparing the data registered in the wages protection system with the data of the wages payment file & the data of the social insurance.
- The Monthly Wages Payment File:
- The employer should submit the monthly wages payment file in the unified form and the file contains the following data:
- The net wage that would be transferred or deposited in the employee's account.
- The employee's account number.
- The employee's name.
- The name of the bank that contains the employee's account.
- The description of the remittance.
- The amount of the basic salary.
- The amount of the housing allowance.
- Other allowances.
- Total amount of deduction.
- The employee identity number (the identity card or the Iqama).
- The remittance process number.
- The status of condition of the transferring process.
- The date of the transferring process.
The Program Regulations:
For the establishment:
The Services: commencing from the date of 25/10/1434H, corresponding to 1/09/2013 the establishments of giant size will be obliged through regulations that depends on the establishment delay period in submitting the wages file to the ministry of labor site from the date of the wages due where the penalties might reach to the extent of stopping the ministry services from the establishment according to the schedule below , knowing that , not abiding by paying the wages on time and /or with the amount agreed upon will be subjected to the labor system regulations and the inspection regulations adopted by the ministry of labor.
The establishment , when not paying the wages of the labor on their determined due date or time , would be penalized by SR3000 fine, and the fine is multiplied based on the multiplicity or enumeration of the laborers:
|The Delay period of Submitting the File||The Regulations|
Controlling &Inspection :
In case of the delay of submitting the file for one moth or delaying the payment the wage from the date agreed upon, or paying the wages with amounts differing from what has been agreed upon , then an inspecting visit to the establishment & the violation or breach would be scheduled in accordance with the ministry of labor regulations.
The Prosecution : in case it has been proved that there is a breach regarding the payment of the wages , the ministry of labor would refer the establishment to the judicial powers in order to take the required procedures or measures.
- The establishment , in case not paying the laborers wages on the determined due date, would be penalized with SR3,000, and the fine is multiplied based on the multiplicity or enumeration of the laborers.
- For the employees:
The data of wages protection regulation would be an approved reference in the judgment or settlement of the related complaints.