Saudi Allows Employees to Transfer Service After 3-Month Salary Delay

The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia has introduced stringent measures against employers delaying salary payments to their employees. The new regulations enable workers to transfer to a different employer if salaries are not disbursed for specific periods, as outlined by the Mudad platform associated with the ministry.

Imposing Penalties

According to the MHRSD, a delay in salary disbursement for three consecutive months will lead to the suspension of all employer services, facilitating the employee's transfer without consent. Even with a valid work permit, the Mudad platform will enforce this penalty, except for work permit issuance and renewal services. Additionally, a two-month salary delay will prompt the suspension of most services except work permit-related matters.

Reduced Response Time and Processing

To address salary delay justifications, the Mudad platform has reduced the time for companies to explain payment delays from 30 to 10 days. Employees now have only three days to accept or reject salary justifications, down from the previous seven-day window. If workers fail to provide justifications within the stipulated period, firm representatives' submissions will be automatically processed.

Subscription and Service Details

The Mudad platform, specializing in social insurance system data, updates employee salary information and caters to various enterprises. Subscription fees range from SR460 for establishments with fewer than nine workers to SR920 for companies with 100 to less than 1,000 employees. There's no need for banking agreements if using the Mudad platform for payroll management.

Enhanced Platform Features

Mudad allows employers to add employees, including those not in the social insurance system, facilitating part-time worker inclusions. It permits deductions, allowances, and bonuses to be added to salaries before disbursement. Employers can make multiple salary payments within a month and easily integrate workers into the social insurance system through the platform.