The Ministry of Human Resources and Social Development (MHRSD) has begun conducting inspection visits to private-sector establishments that delay submitting wage protection files or paying salaries for 20 days. The Mudad digital platform manages notifications and schedules inspections to ensure compliance with the Wage Protection Program and accurate, timely payroll data submission.
How the Wage Protection Mechanism Works via Mudad Platform
The process starts from the salary due date, with Mudad sending reminder notifications to the establishment to upload wage data through the system, following this schedule:
Notification Timeline
- Day 0–10: First email reminder to upload the wage file.
- Day 10: Second reminder if the file is still not submitted.
- Day 15: Final warning for non-compliant establishments.
- Day 20: Request sent to the Inspection Department for an on-site visit to the violating establishment.
Justification Deadlines and Employee Response
- For the establishment: 10 days to provide justification for delayed salary payments.
- For the employee: 3 days to accept or reject the employer’s justification in the compliance system.
- If the employee fails to respond within the specified period, the justification submitted by the employer’s representative will be automatically processed.
Penalties for Continued Salary Payment Delays
- 2-month delay: Suspension of all ministry services to the establishment except for work permit issuance and renewal.
- Over 3 months: Full suspension of services, and the worker may transfer to another employer without the current employer’s approval, even if the work permit is still valid.
Mudad Platform Features & Subscription Fees
The Mudad platform provides establishment and employee data from the Social Insurance System, updates and reviews payroll data, and serves micro, small, medium, and large enterprises with subscription fees starting from:
- SR 460 for establishments with up to 9 workers.
- SR 575 for 10–29 workers.
- SR 690 for 30–59 workers.
- SR 805 for 60–99 workers.
- SR 920 for 100–999 workers.
No agreements with banks are required for payroll management when subscribing to Mudad; otherwise, establishments must enter into agreements with banks to handle payroll files.
Adding Non-Insured Workers and Flexible Payments
Mudad enables business owners to add employees not registered in the Social Insurance System, such as part-time workers. Employers can add deductions, allowances, and bonuses before transfers, make multiple salary payments within a month, and selectively pay specific employees when needed.
Monitoring Violations and Improving Compliance
The Mudad platform monitors payroll violations and allows employees to respond to employer justifications in the system. It helps establishments manage payroll efficiently, ensure timely salary payments, and comply with labor regulations in line with the goals of the Wage Protection Program.
Practical Steps for Wage Protection Compliance
- Update employee records and link them in Mudad and Social Insurance systems.
- Submit the wage file monthly via Mudad before the due date.
- Follow up on notifications and respond quickly to any requests for justifications or clarifications.
- Document contracts and regularly update salary, allowance, and bonus data.
Further Reading on Wage Protection and Compliance
Learn about the Wage Protection Program in Saudi Arabia and how the Mudad platform facilitates monthly wage file submissions. You can also explore the adoption of the platform since its launch in the report “Salaries of Employees of 600,000 Private Firms Through Mudad Platform by the End of 2020”. For new business owners, this guide explains how to integrate with essential systems like Social Insurance, Mudad, and Qiwa: “How to Start a Business in Saudi Arabia as a Foreigner (2025 Guide)”.
SEO and Accessibility Recommendations
- Maintain natural keyword density for terms like: Mudad platform, wage protection program, MHRSD inspection, delayed salary payments.
- Ensure the first paragraph is concise and suitable for use as a meta description.
