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- Saudi Ministry Warns: Salary Delays Could Lead to Inspections and Service Suspension
Posted by : Aahil Shaik
Wednesday, August 13, 2025
Saudi Ministry Warns: Salary Delays Could Lead to Inspections and Service Suspension
The Ministry of Human Resources and Social Development will inspect private sector companies if they delay sending their wage protection files for 20 days, according to ministry sources reported by Okaz.
How the Process Works
➤ The Mudad digital payroll and compliance program will send a request to the Inspection Department to visit companies that fail to submit their wage files on time. Recommend:Qiwa platform updates absence reporting system and employment contract
➤ The process starts when wages are due:
✅ Day 0 – Mudad sends an email reminder to the company to upload wage data through the platform.
✅ Day 10 – A second reminder is sent to those that have not submitted the file.
✅ Day 15 – A final warning is issued.
✅ Day 20 – If there is still no response, the Inspection Department is notified to visit the company.
Justification Periods for Salary Delays
🔹 Companies have 10 days to explain why salaries are late.
🔹 Employees have 3 days to accept or reject the employer’s explanation in the compliance system.
🔹 If the employee does not respond in time, the employer’s explanation will be automatically accepted.
Penalties for Salary Delays
✓ If salaries are delayed for two months, all company services will be suspended except issuing and renewing work permits.
✓ If salaries are delayed for three months, all services will be stopped.
✓ Workers will be allowed to transfer to another employer without their current employer’s approval, even if their work permit is still valid. See Also: Employers to face hefty fines for failing to provide health insurance to workers and their families
About the Mudad Platform
■ Provides company and employee data from the Social Insurance System.
■ Updates and reviews payroll data for micro, small, medium, and large enterprises.
■ Subscription fees:
• SR460 for companies with 1–9 workers.
• SR575 for 10–29 workers.
• SR690 for 30–59 workers.
• SR805 for 60–99 workers.
• SR920 for 100–999 workers.
■ No need for a separate bank contract if using Mudad. If not using Mudad, companies must make payroll agreements with banks.
Additional Features
🔘 Employers can add part-time or non-social insurance employees to the system.
🔘 This feature allows employers to add deductions, allowances, and bonuses before processing salary payments..
🔘 Salaries can be paid more than once per month and to a selected number of employees at a time.
🔘 Employers can add non-social insurance workers directly to Mudad.
🔘 The platform monitors payroll violations and allows employees to respond to employer explanations. Like and Follow Saudi Expatriates News page on Facebook
Ministry’s Emphasis
The ministry stressed that all companies must follow the Wage Protection Program (WPP) and submit wage files through Mudad to avoid inspections and penalties.
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Saudi Ministry Warns Salary Delays Could Lead to Inspections and Service Suspension |