MHRSD to carry out inspection visits to establishments if they delayed disbursing wages for 20 days All services to establishments will be suspended if the wage delay exceeds three months

RIYADH — The Ministry of Human Resources and Social Development has decided to carry out inspection visits to private sector establishments if they delayed submitting their wage protection files for 20 days, Okaz has learnt from the ministry sources.
The Mudad digital payroll and compliance program, under the ministry, will send a request to the Inspection Department to visit the establishments that have failed in submitting the file within the stipulated period of time. The ministry explained that the procedures begin when wages are due. The Mudad program will send an email notification to the establishment reminding it of the need to upload wage data through the program. After 10 days, another notification will be sent to establishments that have not submitted the file.
The ministry noted that a final warning will be sent to employers who have not submitted their wage files, 15 days after the wages are due. If 20 days pass without a response, a request will be sent to the Inspection Department to make an inspection visit of the erring establishments.
The Mudad platform announced that the period for establishments to justify the reason for delaying the payment of workers' salaries will be 10 days. It also granted employees a grace period of only three days to accept or reject salary justifications in the compliance system. The platform indicated that if an employee fails to provide a justification within the specified period, the justification submitted by the establishment's representative will be automatically processed.
According to the ministry decision, if an establishment delays the disbursement of salaries for two months, it will be penalized by suspending all services except the issuance and renewal of work permits. If the delay exceeds three months, all services will be suspended. Additionally, the worker will be allowed to transfer his services to another employer without the approval of the current employer, even if his work permit is valid.
The Mudad platform specializes in providing establishment and employee data from the Social Insurance System, as well as updating and reviewing employee payroll data. It offers its services to micro, small, medium, and large enterprises, with fees starting at SR460 for establishments with nine or fewer workers, SR575 for establishments with 10–29 workers, SR690 for establishments with 30–59 workers, and SR805 for establishments with 60–99 workers.
For companies with more than 100 workers and less than 1,000 workers, the subscription fee is SR920. The establishment will not be required to sign any agreements or contracts with banks to manage the payroll system. If the establishment does not sign a contract with the Mudad platform, it will be required to enter into an agreement with banks.
Mudad allows business owners to add employees to the platform, even if they are not included in the social insurance system, such as part-time workers. This allows them to add deductions, allowances, or bonuses to employees' salaries before the transfer. The platform enables employers to pay salaries more than once per month, with the possibility of paying salaries to a limited number of employees at a time. As for employees not included in the social insurance system, the system allows them to be added to the system via the Mudad platform.
The Mudad platform monitors payroll violations by the employer and allows employees to respond to the justifications submitted by the employer or company. The platform enables establishments to organize and manage workers' wages, ensuring timely payments and adherence to labor regulations. The ministry emphasized that establishments must comply with the Wage Protection Program (WPP) and submit wage files through Mudad to avoid penalties.