Saudi Arabia flags unreasonable wages and delayed payments as payroll violations

Mudad to issue alerts, trigger inspections for illogical salaries and delayed payments.

Last updated: August 15, 2025 | 05:27

1 MIN READ

Updated guidelines empower the Mudad digital payroll platform to detect anomalies such as salaries far below or above prevailing levels, excessive deductions exceeding 50 per cent of pay, or basic wages not recorded in the system for over 90 days.

Bloomberg file

Dubai: Saudi Arabia’s Ministry of Human Resources and Social Development has announced that assigning employees unreasonably high or low wages will now be flagged as a violation under the Kingdom’s Wage Protection Programme.

Also Read: Average wage for Saudi government employees is SR11,754, according to official statistics

Other violations include failure to record or pay wages or maintaining no documented record of payment.

Inspection visits will be triggered if private-sector employers delay submitting wage protection files by more than 20 days. The Mudad system sends an initial reminder once wages are due, a second notice after 10 days, and a final warning on day 15.

Also Read: Saudi Arabia amends the minimum wage for nationals

If files are still not submitted by day 20, inspections are initiated. Employers have 10 days to justify delays, after which employees have three days to accept or reject the explanation; if they do not respond, the employer’s justification is automatically recorded.

Also Read: Saudi Arabia: 3,200 riyals set as minimum wage for government support

Under existing rules, companies delaying salaries for two consecutive months face suspension of ministry services, except for work permits. Delays exceeding three months result in full suspension, allowing employees to transfer to new employers without consent, even if their work permits remain valid.

The updated framework aims to ensure timely and fair compensation for workers while strengthening compliance among private-sector employers.

Khitam Al AmirChief News Editor

With over 30 years of journalistic experience spanning from Jordan to the UAE, Khitam has spent the past 22 years reporting on national and regional news from Dubai, with a strong focus on the UAE, GCC and broader Arab affairs. As Chief News Editor, she brings extensive expertise in delivering breaking and engaging news to readers. Beginning her tenure as a translator, she advanced through roles as Senior Translator and Chief Translator before transitioning to editorial positions, culminating in her current leadership role. Her responsibilities encompass monitoring breaking news across the UAE and the broader Arab region, ensuring timely and accurate dissemination to the public. Born into a family of journalists, Khitam's passion for news was ignited early in life. A defining moment in her youth occurred in September 1985 when she had the opportunity to converse with the late British Prime Minister Margaret Thatcher during her visit to a Palestinian refugee camp north of Amman. During this encounter, Khitam shared her family's experiences of displacement from their home in Palestine and their subsequent refuge in Jordan. This poignant interaction not only deepened her understanding of geopolitical issues but also solidified her commitment to pursuing a career in journalism, aiming to shed light on the stories of those affected by regional conflicts. Khitam’s commitment to accurate and timely reporting drives her to seek out news that interests readers, making her a trusted source for news on the UAE and the broader Gulf region.