Posted by : Aahil Shaik Wednesday, December 16, 2015

3000 Riyals fine for delaying Salary in Saudi Arabia for Employer or Company

The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia announced a penalty fine of 3000 Saudi Riyals for the employers or companies who delays the salary payment of their employees. This penalty will be imposed, if the ministry found salary delays as per Wage Protection System or if someone lodged a complaint on salary delay in the Labor ministry office. Trending : Domestic Workers can transfer without kafeel

Saudi Arabia's Labor Ministry implemented Wage Protection Systems in order to protect the rights of their citizens and expatriate workers and to track the salary payment delays. In the year 2015, Ministry already stopped services like profession change, transfers for private companies as they delayed salary for more than 274 workers.

If a company fails to submit its salary data in wage protection system for two or more months, then the services related to that company will be stopped, And the employees of that company are able to transfer to another company. Employees can transfer to another company in certain conditions read in this article "Tanazul without kafeel approval".

Recently GOSI (General Organization for Social Insurance) announced that, it will penalize a company with 10,000 riyals, If they did not enroll the employee or workers in the system, As it is noticed employers are excluding their employees from enrolling into the system. Related : Benefits of GOSI

Ministry of Labor (MHRSD) implemented various phases of wage protection system in Saudi Arabia starting from the year 2013 for the companies with employees 3000 or more, Till 2017 Ministry implemented 10 phases, 11th phase is about to implement on August 1st, 2017 for the companies whose employees are more than 60. Detailed 11th phase of wage protection system in Saudi is explained in this article "11th Phase of Saudi Wage Protection System".


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