The Wage Protection System is an initiative launched by the Ministry of Human Resources and Social Development to enhance transparency and preserve the rights of establishments and their employees.
This program relies on monitoring the disbursement of employee salaries in all private sector establishments, whether for Saudi citizens or expatriates, which helps measure the extent to which establishments are committed to paying salaries on time.
The program aims to reduce violations of late or non-disbursement of wages, which enhances transparency and preserves the rights of workers. The certificate of commitment to the Wage Protection System is evidence of the establishment's commitment to implementing this system.
To properly implement the Wage Protection Program, some controls and mechanisms must be followed, the most prominent of which are:
1- Create a bank account in a local bank or issue a card dedicated to disbursing the salary of each employee in the establishment.
2- Register in the Wage Protection Program via the Madad platform and add all data related to employees and their wages correctly.
3- The necessity of updating employee data periodically to avoid making any mistakes.
4- Commitment to uploading the employee payroll file on time without delay.
5- The program monitors employee disbursement data compares it with what has been registered with the Ministry of Social Insurance, and measures the extent of the employer's commitment to paying these salaries at their actual value at the appropriate time.
To obtain a certificate of commitment to wage protection, the program must first be adhered to, and the percentage of this commitment is determined by performing the following process:
(Number of employees who are paid a salary - Number of violating employees) / Total number of employees x 100
For example:
In an establishment that contains several employees ranging from 1-9, the required commitment rate is approximately 40%.
However, if the number of employees ranges from 10-20, the required commitment rate is usually approximately 50%.
If the number of employees is from 30 to 99, the required commitment rate is 90%.
Finally, if the establishment includes more than 100 employees, the required commitment rate is 95%.
Wage protection program violations include many aspects related to the establishment owner's failure to follow up on employee salaries and submit the file and data related to wages on time.
1- The establishment pays the worker's wage more than once a month.
2- Failure to pay the worker's wage on time.
3- Deducting more than 50% of the employee's basic salary.
4- There is an increase in the salary exceeding 20% of the salary registered in social insurance.
5- The salary received by the employee is not equal to the amount registered with social insurance.
6- Failure to correct the violations observed within the specified period.
Consequences of Violating the Wage Protection System
In the event of a violation of the program and failure to amend it within the specified time, consequences and fines will be issued that the establishment will bear and vary according to the duration of the delay, as the delay period if it exceeds one month may result in a fine exceeding 10,000 riyals per month
while its continuation for two months will result in the suspension of all services provided except for issuing or renewing work permits
if the violation continues for three months, it may result in the suspension of all services completely with the possibility of allowing workers to move from this establishment to another.
These establishments are subject to inspection visits by the responsible authorities and if the violation is proven, the establishment will be referred to the competent judicial authorities, with an additional fine of 10,000 riyals imposed for each month of delay.
Etmaam helps you get rid of wage protection notes, and return your facility to its normal activity as soon as possible.
It also helps you upload a wage protection file and avoid receiving fines or notes.
Contact us now and request our wage protection services and learn more about wage protection packages.
Call now on our unified number 920022444
Or WhatsApp 0533030283
It is a document that includes data on the disbursement of wages for employees in establishments and aims to ensure that employers are committed to paying salaries on time according to the agreed contracts.
This file relies on an electronic system that monitors payment processes and detects any delay or manipulation in salaries, which helps enhance transparency and preserve employee rights.
It also helps extract a certificate of commitment to wage protection. This file includes some important data, including:
1- The employee's basic salary.
2- The employee's data and national identity.
3- The bank through which the disbursement is made.
4- The transfer transaction number, status, and date.
It is a service issued by the Ministry of Human Resources and Social Development in Saudi Arabia that enables the owner of the establishment to prove the extent of his establishment's commitment to wage protection programs. It is issued immediately after verifying that the establishment is depositing salaries into employees' bank accounts in a manner consistent with the approved laws and regulations.
1. Ensure that all salaries have been paid through approved banking channels.
2. Adhere to the standards set by the Ministry of Human Resources.
3. Address any violations or notes that may appear in the wage protection file.
In the event of a violation, it must first be addressed by amending and correcting the situation, after which the facility can submit a request to obtain a certificate of commitment.
Of course, the certificate of commitment is valid for a full month, and it must be renewed if the facility continues to adhere to the process of paying wages on time.
Of course, late payment of wages can expose the facility to violations and penalties that may reach the point of depriving employees of their rights, so the facility must correct any violation to avoid falling into any penalties.
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February 16, 2025
- BY Sultan Al-Qahtani