Tuesday, October 7, 2025
Saudi Arabia Adopts Wage Clause in Employment Contracts: New Step to Protect Workers’ Rights
The law now binds and enforces wage clauses in notarized employment contracts. The Saudi Ministry of Justice and the Saudi Ministry of Human Resources and Social Development (MHRSD) have announced new regulations.
The goals of this move are to strengthen confidence between businesses and their employees, create a more equitable labor market, and safeguard the rights of workers. A digital link between the Qiwa and Najiz platforms makes it possible. See Also: MHRSD launches 4th phase of domestic workers salary transfer via Musaned
What is the Wage Clause?
The wage clause means that if a worker’s salary is not paid, the worker (or employer) can file an enforcement request directly. They do not need to submit any extra documents.
The Madad platform verifies the payment status automatically after reviewing the data.
The resolution of salary disputes is now simpler and quicker thanks to this digital approach. This digital approach enhances compliance with labor laws and fosters a more stable and equitable work environment.
The Qiwa platform documentation of the employment contract is required, as is the acquisition of an implementation number from the Ministry of Justice's documentation center, in order to make use of this feature.
When Can a Worker File a Wage Claim?
➤ If a worker does not receive their full salary within 30 days of the due date, or
➤ If the worker only receives part of their salary after 90 days,
they can submit an electronic enforcement request via the Najiz platform.
The employer will then be notified and has the right to object within five days of receiving the notice. Trending: Initiative to correct Absent From Work status
When Will the Rule Be Applied?
The new wage clause system will roll out in three phases so that businesses and workers have time to get used to it:
✅ Phase 1: October 6, 2025: For any contracts that are new or have been changed.
✅ Phase 2: March 6, 2026, for fixed-term contracts that are being renewed.
✅ Phase 3 – August 6, 2026: For indefinite-term contracts.
This step-by-step rollout gives organizations time to adapt smoothly to the new process.
Guidance for Employers and Workers
The Ministry has asked all employers and employees to visit its official website to read the detailed guide. The guide includes:
🔘 Rules and conditions
🔘 Procedures and steps
🔘 Eligible worker categories
🔘 Application process
🔘 Frequently asked questions (FAQs)
Why This Step Matters
Making the notarized employment contract an official and enforceable document is part of the Ministry’s plan to build a transparent and trustworthy labor market.
Using digital technologies that clearly define duties and preserve everyone's rights helps build trust between workers and employers.
This system will cut down on labor conflicts, improve work relationships, and make sure that all workers with written contracts have their rights enforced fairly.
The Ministry also wants to make sure that everyone in Saudi Arabia has a fair, open, and welcoming workplace. Join Saudi Expatriates channel on WhatsApp
 |
| Saudi Arabia Adopts Wage Clause in Employment Contracts New Step to Protect Workers’ Rights |
