Maximising your payroll efficiency

maximising payroll efficiencyPayroll is an essential part of operating any business in Saudi Arabia and there are many regulations that companies are not aware of when setting up in the Kingdom. The Wage Protection System (WPS) states that payroll for all employees must be administered locally, to protect the rights of both employees and employers. For the benefit of employees working in Saudi, the General Organization for Social Insurance (GOSI) ensures companies are making social insurance contributions for their employees in the case that they are not able to work due to a work-related injury. Compliance with both these programs is essential to maintaining an active labor office file with the Ministry of Labor.

Vision 2030 reforms have impacted how businesses operate in the Kingdom and the changes required will affect all departments. Your payroll department is an essential part of your business that must be kept running efficiently despite any changes within the business.

There are a number of methods companies can implement to ensure their payroll is operating at its’ maximum efficiency.


Compliance is an essential part of doing business in Saudi Arabia and to ensure that you are compliant, audits should be undertaken regularly. Internal audits allow you to verify that employee data, salary and details are accurate and up-to-date and ensuring that GOSI contributions are accurate. Audits help identify where errors or delays are being caused, where efficiency can be increased and ways to remain compliant.


Creating a transparent payroll policy for employees will assist in minimizing mistakes, fraud and create a smooth process. Having a payroll policy ensures that employees know what they are entitled to and what is required of them in the payroll process, if necessary. The WPS creates transparency through opening information to both the employer and employee regarding wages, protecting both parties in the case of disputes.

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Minimize pay cycles

Minimizing pay cycles streamlines employee pay schedules, employees are paid together rather than individuals being paid on different dates. In Saudi, permanent employees are paid on a monthly basis. However, employees on a work visit visa can be paid on individual pay schedules, whether that’s weekly, fortnightly, etc. Organising different pay schedules to match increases the efficiency of your payroll process.

Outsourcing payroll

Outsourcing payroll can help you manage payroll easily, as the payroll provider has the expertise to ensure the most suitable solution for your company while adhering to the local regulations. It minimises the number of payroll employees you need, guarantees your employees are paid on time and ensures compliance with Saudi regulations.


Payroll is an essential part of running any business and employees are a company’s most important asset, therefore, ensuring payroll is done in a compliant and consistent way is important for employee satisfaction. If your company prefers to focus on core deliverables then handing over the responsibility to a payroll outsourcing provider is a viable option.

If you would like more information on how to outsource your payroll, the support it can offer you and how to maximize your payroll cycle, contact us on +966 11 411 1127 or