The Ministry of Human Resources and Social Development launches new updates to the rules of the Wages Protection System
The Ministry of Human Resources and Social Development launches the first phase of the new updates to the rules of the Wages Protection System, to show the percentage of commitment of establishments and display alerts, provided that the processing of files based on the new work rules will begin immediately.
The Wages Protection System is one of the Ministry’s programs aimed at providing a suitable and safe work environment in the private sector, in terms of raising the level of transparency and preserving the rights of contracting parties.
The system monitors the payment of wages to all workers in the private sector (Saudis and expatriates), and measures the extent of the establishments’ commitment to pay wages on time, and at the value agreed upon between the contracting parties, with the aim of reducing wage disputes between establishments and workers in the private sector.
The new update of the Wages Protection System enables establishments through the website to know the rejected records based on the month and the type of violation, and to display the compliance status for the current month and the last six months.
The ministry explained that the new update of the system rejects the (wage protection file) completely if the file is opened after receiving it from the bank, and the absence of the unified number of the establishment or its non-conformity, and payment in a currency other than the Saudi riyal all of this would cause the file to be rejected.
The Ministry presented through its electronic portal https://www.hrsd.gov.sa a special document and a user guide for the new system through its electronic portal, stressing that failure to follow the specifications of the wage protection file for the program leads to its complete rejection.
According to the new update of the system, (employee records) will be rejected in the wage protection file if the total is not equal to the total basic salary, housing allowance, other entitlements and deductions, as well as if one of the payment details or the total is negative, and if the total salary is equal to zero, or the worker’s national identity or residence is not entered.
The Ministry affirmed its commitment to preserving the rights between the parties to the contractual relationship, and violating every establishment that is not committed to raising the wage protection file in its correct form, noting that the violations affect the calculation of the commitment percentage if they are not justified by the owner of the establishment and then accepted by the Ministry’s inspector.
Among the violations is that the establishment pays the worker’s wage more than once a month, where the duplicate record is excluded, as well as if the worker’s wage is not paid on time, and also the establishment violates if more than 50% of the basic salary of the worker registered in the social insurance is deducted or an increase of 20% over the salary registered with the social insurance, and a violation is calculated against the establishment if the basic salary is not equal to the salary registered in the insurance.
The Ministry pointed out that the new update of the Wages Protection System calculates the compliance index through the number of employees whose wages have been transferred in the WPS from the total employees registered in the social insurance on the establishment, while the new expatriate worker is not counted in the commitment percentage in the first 90 days of entering the Kingdom, nor the worker licensed outside the Kingdom, and those who had cases pending in court with the need to justify all of the above, and the Saudi worker is also counted. In the percentage of commitment if he is present in the facility for a full month.
According to the new update of the system, services are suspended on violating establishments that are not committed to wage protection after alerting establishments, at the specified time when the establishment is required to raise the file.
The Wages Protection Program monitors the payment of wages to all male and female workers in private sector establishments (Saudis and expatriates) in order to create a database containing updated information on the payment of wages to workers in the private sector and determine the extent of the establishments’ commitment to pay wages on time and at the agreed value. Starting from 22/7/1434 AH corresponding to 1/6/2013 AD, the program has been implemented to include in its first phase giant size establishments (3,000 employees or more) as a “trial period” and these establishments will be able to register and upload the wage payment file in the ministry’s e-services portal, mandatory application from 25/10/1434 AH corresponding to 1/9/2013 AD, according to the plans announced on social networking sites and the ministry’s website.
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