SR3,000 fine for every delayed salary


Employers who delay the salaries of their Saudi and expatriate employees, or who fail to pay contracted amounts, will be fined SR3,000 for every offense, the Ministry of Labor has announced.

The fines will be implemented if the ministry’s Wage Protection System (WPS) indicates a delay or violation, or if a complaint is lodged at an office of the ministry, according to a report in a local publication recently.

The WPS became in June 2013 compulsory for companies with over 3,000 employees, September 2013 for companies with over 2,000 employees, December 2013 for companies with over 1,000 employees, and November 2014 for companies with over over 500 employees.

In February 2015 it became compulsory for companies with over 320 employees, April for companies with over 240 employees, June for companies with over 170 employees, and August for companies with over 130 employees.

It is expected that it would become compulsory for companies with over 100 employees on Nov. 18, with the final phase for other firms yet to be determined, according to reports.

The system was initially launched to protect the rights of workers and ensure salaries are paid on time, according to signed contracts. This year, the ministry stopped recruitment services, job title changes, and transfer services for a private sector company that had delayed salary payments to 274 employees.

Meanwhile, the General Organization for Social Insurance (GOSI) has announced that it would fine employers SR10,000 if they exclude workers from the system.

Abdullah bin Mohammad Abduljabbar, GOSI’s spokesman, said that the organization had noticed recently that employers were not entering the names of their employees in the system.

He said employees can only be excluded if the company’s owner dies, the firm is liquidated, or it closes down. Other reasons include the worker’s contract ending, resignation, or the worker dying.


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