Thursday, August 14, 2025
Unfair Salaries and Late Payments to Trigger Alerts in Mudad System
The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia has explained that giving an employee a basic salary that is either unreasonably low or unusually high will be flagged as a violation under the Wage Protection Program.
The program’s latest compliance guide says these “illogical” wages will show as alerts in the employer’s violations record on the Mudad platform, based on comparisons with other recorded data. Similar: Penalties for companies in case of salary delays
Alerts will also appear if:
➤ Salary deductions are more than 50% of an employee’s wage.
➤ An employee’s basic wage is not recorded on Mudad for over 90 days.
➤ The basic wage is not entered in the correct fields.
➤ The wage is not paid at all.
➤ There is no record of wage payment.
The ministry added that inspection visits will happen if a private company delays sending wage protection files by more than 20 days.
The Mudad platform, which manages payroll compliance, will automatically send a request to the Inspection Department to visit companies that do not comply. Read: Saudi Arabia's blue economy to create 100,000 jobs by 2030
The inspection process starts after wages are due:
✅ Mudad sends a first reminder to the employer.
✅ After 10 days, a second reminder is sent.
✅ On the 15th day, a final warning is issued.
✅ If no wage file is submitted within 20 days, an inspection request is triggered.
Mudad also said employers have 10 days to explain why salaries were delayed. Employees have three days to accept or reject this explanation in the system. If employees do not respond, the system will automatically accept the employer’s justification.
Under current ministry rules:
■ If salaries are delayed for two months, all company services will be suspended except for issuing and renewing work permits.
■ If the delay exceeds three months, all services will be suspended.
■ Employees can transfer to a new employer without the current employer’s approval, even if their work permit is still valid. Saudi Expatriates News is now on LinkedIn
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| Unfair Salaries and Late Payments to Trigger Alerts in Mudad System |
