Riyadh- Saudi Arabia is carrying out effective steps towards expanding scope of the wage protection system in the country – this system guarantees disbursing salaries on time, determining wages’ level in all professions and reducing problems that might show up in the vocational field of the private sector, prompting citizens to work in this vital sector.
Starting Aug. 1, the Ministry of Labor and Social Development will begin enforcing the mandatory wage protection system on private establishments with up to 60-79 employees. This phase of the program will cover more than 7,000 establishments and a total of more than 481,000 employees.
Disbursement of salaries is supervised by the wage protection system through an updated database that guarantees establishments’ timely and full payment of agreed-upon wages.
In this context, the Ministry’s spokesman Aba Al-Khail confirmed the ministry will apply the wage protection system on all private sector employers to ensure employee salaries are paid in a timely manner.
He added that penalties against violators also include suspending all services to establishments that are late in submitting information about the wages of employees for three months, and permitting employees of these establishments to transfer to other employers without requiring approval.
These updates coincide with the ministry holding a series of meetings with businessmen to introduce them to the wage protection system, its implementation and timeline.
Further, the program is expected to succeed in reducing number of illusive jobs in the kingdom.
Saudi Arabia is taking steady steps towards increasing recruitment opportunities in the country through promoting economy, nationalizing jobs and supporting long-distance job opportunities through a specialized initiative launched by the ministry within initiatives of National Transformation Program 2020.