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Ever look at your paycheque and get shocked by the lack of zeros in there? Well, not anymore because the Ministry of Human Resources and Social Development has revealed new Saudi salary rules.
That’s right, the government and its entities have stepped in to offer you further wage protection.
First reported by the Saudi Gazette on Wednesday, August 13, the new rules include a measure which will monitor unreasonable basic wages and will file it as a violation under the Wage Protection Program.
The announcement also addressed salary deduction, salary being withheld, lack of payment records, and more.
New Saudi salary rules 2025
The Ministry of Human Resources and Social Development has had quite a busy week. After announcing that businesses failing to pay their employees in a timely manner will receive a not-so-friendly visit from them, HRSD has gone on to announce new salary directives.
These directives come complete with measures that aim to address specific issues that the Kingdom’s working economy has been facing. All violations under the rules will be recorded on Mudad, the Saudi platform that manages payroll and compliance.
Rules
Under the latest program, salaries flagged as unreasonable compared to other recorded data will trigger alerts in an employer’s violations record on the Mudad platform.
Alerts will also be issued if salary deductions exceed 50 percent of a worker’s pay or if a basic salary hasn’t been entered on Mudad for more than 90 days. Other violations include failing to record the basic wage in the required fields, not paying wages, or having no record of wage payments.
Additionally, the ministry announced that inspection visits will be conducted for private sector firms that delay submitting their wage protection files by over 20 days.
How the new Saudi salary rules work
The Mudad platform, which oversees payroll compliance, will automatically request an inspection visit for companies that fail to comply. The process starts when wages become due: Mudad sends an initial reminder to the employer, a second notice after 10 days, and a final warning on day 15. If the wage file is still not submitted after 20 days, an inspection request is issued.
Employers are given 10 days to explain any salary delays, after which employees have three days to accept or reject the explanation in the system. If the employee does not respond, Mudad will automatically approve the employer’s justification.
Consequences of not following the new Saudi salary rules
Companies that delay salaries for two months will have all services suspended, except for the issuance and renewal of work permits. If the delay extends past three months, all services will be halted entirely. In such cases, employees may transfer to another employer without needing their current employer’s approval, even if their work permit is still valid.
Other Saudi reforms
when it comes to salary payment and protection, HRSD does not play about. The ministry recently introduced a flexible salary initiative that will allow you to access a part of your wages before pay day to reduce financial strain.
Across Saudi, hrsd.gov.sa.
