An update on the current Wages Protection System
The implementation of the Wages Protection System in Saudi Arabia is currently mid way through its four year roll out. It began in 2013 with the national schools and those organisations with over 3,000 employees and will complete in 2017 for those companies with a small workforce of 11-14 laborers.
The system is designed to give employees of all the labors (both male and female) protection over their salary payments by monitoring the salary payment process in the private sector establishments. The wages protection program holds a database that contains all the updated information on employee salaries that is held by the Ministry of Labor. This allows the program to verify that companies are paying their employees on time and that they are getting the amount previously agreed on. Any discrepancies are flagged and those employers contacted for an explanation.
The program has considerable benefits for the employer as well as the employee. It reduces the number of labor disagreements and provides a healthy working environment. The system provides all of the payment receipts for each employee, making any discrepancy issues easily dealt with. It also allows the Ministry of Labor to report on statistics and data, giving employers precise information on their market and being more attractive to potential employees.
The employer should submit a monthly wages file through the online system containing details such as the employee’s name and account number, the net wage that will be deposited into the employee’s account, the description of the remittance, any other allowances such as housing or travel. For the full list of details to be submitted, you can view them here.