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The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia has issued a fresh directive under the Wage Protection Program (WPP), warning that assigning employees an illogical basic wage, either unusually low or excessively high, will now automatically trigger violation alerts on the Mudad platform.
The updated compliance measures are designed to tighten oversight and promote fair wage practices across Saudi Arabia’s private sector.
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These alerts will be recorded in the employer’s violation log if the wages deviate significantly from established patterns in the system.
Additional red flags include
- Salary deductions exceeding 50 per cent of an employee’s wage
- Failing to input the basic wage on Mudad for more than 90 days, a Saudi Gazette report said.
The ministry also listed several other violations: omitting the basic wage from designated fields, withholding wage payments, or maintaining no record of wage disbursement.
Inspections to be triggered by delayed file submissions
If a private-sector establishment fails to upload wage files within 20 days of the due date, the Mudad platform will initiate an automatic request to the Inspection Department. This process kicks off with a reminder on the due date, a second reminder after 10 days, and a final warning on the 15th day. If the issue remains unresolved after 20 days, an inspection is officially triggered.
To ensure transparency and fairness in the process, the following steps are followed when addressing delayed salary payments:
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Employers are granted 10 days to justify delayed salary payments.
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Employees have 3 days to accept or reject the employer’s explanation via the Mudad system.
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If the employee does not respond within 3 days, Mudad will automatically accept the employer’s justification by default.
Noncompliant companies face escalating penalties. A two-month salary delay results in the suspension of all services except for issuing and renewing work permits. Delays extending beyond three months will lead to the suspension of all services. In such cases, employees are granted the right to transfer to a new employer without their current employer’s approval, even if their existing work permit is still valid.
Mudad and Khazna introduce ‘Flexible Salary’ option
In a move to modernize payroll systems, the Mudad platform signed a cooperation agreement with Khazna Financial Technology Company in July 2025 to introduce a new product: Flexible Salary. This feature allows employees to access a portion of their earned wages before the official payday, offering them greater financial control.
The initiative is seen as a game-changer in employee empowerment, aiming to reduce financial stress and improve productivity. It enables workers to withdraw a portion of their income for the days already worked, without having to wait until month’s end, a Saudi Gazette report conveyed.
Leaders from both Mudad and Khazna emphasized that the new product supports Saudi Arabia’s Vision 2030 by driving digital transformation in human resources and strengthening worker protections. The collaboration is also expected to improve the overall work environment by providing innovative financial solutions and enhancing employer-employee trust.
