Saudi Arabia: Wages Protection System to be Implemented for Companies with 80 Employees

Analysis

From 1 February 2016, the Wages Protection System becomes compulsory for all companies with 80 or more employees.

Employers who fail to submit their respective salary information file to the Labour Ministry for two months will face a penalty. It is expected that employers with violations will not have their labour transactions processed by the Ministry until the violation has been rectified.

What This Means for Employers and Foreign Nationals

All private sector employers falling under the system obligation must be prepared to submit appropriate salary information for their employees. Employers should remain in contact with their respective banks for specific guidance and instructions.