Nov 1, 2017
12th PHASE OF WAGE PROTECTION SYSTEM COVERS COMPANIES WITH 40 TO 59 EMPLOYEES
To ensure the workers and employees salaries paid on time, Ministry of Labor and Social Development in Saudi Arabia has started the mandatory implementation of the 12th phase of wage protection system. Trending : Wage Protection System in Saudi Arabia
The 12th phase of Wage Protection System covers companies and organizations with 40 to 59 workers, As per the estimation these phase covers 687,607 employees of 14,288 companies in Saudi Arabia.
- Under the Wage Protection Program, If the company fails to pay salaries of employees on time will face a fine of 3000 Saudi Riyals on each unpaid salary of the employee. Similar : Salary delay fine on Saudi companies
- Wage Protection System will suspend the company, if the salary of workers delayed continuously for 3 months, It also allow the unpaid workers to transfer to new employer with out any permission from the current employer. Recommend : Transfer to new sponsor without old kafeel permission
- Companies are being encourage to participate and keep track on an experimental basis before the next phase becomes mandatory on them.
- Last year most of the construction sectors delayed the payment of salaries to their workers which led thousands of expatriates to leave Saudi Arabia. See Also : Check your company color status
- Before few months government made mandatory to provide bank accounts to all the workers in the companies for receiving salaries on banks and in order to track the salary delays and the salary scales of expats and Saudi citizens.
- The 11th phase of Wage Protection System started in August 2017 covered companies with more than 60 employees and it effected on 7000 companies and 481,000 estimated employees. Related : 11th Phase of Wage Protection System in Saudi Arabia