Wage Protection System now mandatory in 2017 for SMEs

wage protection systemWhat is the The Wage Protection System?

The Wage Protection System (WPS) was implemented in 2013 by the Labour Ministry of Saudi Arabia; eventually becoming mandatory for all employers in the private sector. The implementation has been staged over a four year period depending on company size with the smallest of the SME’s having to implement the changes in 2017.

The WPS’s main objective is to monitor the paying of wages in the private sector, minimize illegal workers and streamline the labour force. It promotes the protection of employee rights, ensuring they receive their agreed wages and that they are delivered in a timely manner.

The implementation process for 2017 is as follows;

  • 20-29 laborers – by 1/03/2017
  • 15-19 laborers – by 1/07/2017
  • 11-14 laborers – by 1/09/2017
  • 1-10 laborers implementation date is still to be announced.

The WPS is an ongoing system, that requires employers to submit monthly wages file online through the e-service. Companies who are not complying with the WPS will be fined by the Ministry of Labour and temporary blockage of GOSI and labor file.

 

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