Ministry Of Labor and SAMA (Saudi Arabian Monetary Authority) is functioning cooperatively on Wage Protection System in Saudi Arabia. The purpose of Wage Protection System is to make it certain that people working in the private sector are paid suitably and correctly according to terms and conditions agreed by both parties in contract acknowledged in Saudi Arabia Social Security and to track the incomes of expatriates and citizens.
- Salary Delays in Wage
Protection System: Saudi Arabia Labor Ministry applies Wage Protection System to
guard or secure the rights of their nationals and expatriates workers and also
to check that the salary payment will not be delayed. According to Ministry Of
Labor in Saudi Arabia, the employers or companies will be punished with fine of
SR 3,000 per employee if they delay the salary payment of their citizens and
expatriate staffs. This fine will be levied, if the ministry found salary
delays as per wage protection system Saudi Arabia or if somebody complaint
about the delay of salary in Labor ministry office. Recommended: SR
3,000 fine per Employee, if salary is not paid on time
- If the company fails to pay the salary for 2 or more months, their services will be terminated by Labor Ministry. The company will lose its workforce. The workers of such company are permitted to transfer to any other company without the consent of the present kafeel. Exception to this is work permit renewals; in this case salary can be delayed for 2 months.
- If the company did not register its workers then it will also be fined with 10,000 Saudi riyals.
- Companies should act in accordance with Wage Protection System within 2 months of it made Obligatory. The companies have to submit all the data to Labor Ministry through e-service program. In case, if the companies failed to submit the data to Saudi Arabian Monetary Authority, these are the options available to the Ministry of labor;
- The Ministry of Labor will reject and suspend all the amenities to the company but Issue and renewal of work permits is an exception to this. These work permits are also known as Muqeem Card previously called iqama. The term iqama is not in use now. These muqeem cards having Picture, Name, Birthdate, contact Number, Job, Nationality, Belief, Company name and also Work permit number are available online and there is no need to go to office for making or renewal of these cards. The duration or validity of these cards is five years
- Ministry of labor allows the workers to go to any other company without approval of present Sponsor. Sponsorship transfer is also known as Naqal Kafala in Saudi Arabia. Labor Ministry made it possible for employees to change their sponsor lawfully without the consent or approval of current kafeel in Saudi Arabia. Recommended: Transfer of Sponsorship (Naqal Kafala) without Approval of Kafeel
Legal System in Saudi Arabia
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- Legal System of Saudi Arabia
- Taxation System of Saudi Arabia