SALARY DELAY FINES COMPANY (SAUDI ARABIA)

Ministry Of Labor (MOL) in Saudi Arabia announced a penalty fine of SR 3000.00 for those employers or companies who delays the salary payment of their Saudi and Expatriate employees.  This penalty will be imposed, if the ministry found salary delays as per wage protection system of Saudi Arabia or if someone lodged a complaint on salary delay in Labor Ministry office.

Saudi Arabia Labor Ministry implemented WPS to protect the rights of their Citizen and Expatriates employees and to tract the record of any non-salary payment delays.  In the year 2015, Ministry already stopped services like profession change, transfers fro private companies as they delayed salary for more than 274 workers.


If a company fails to submit its salary data in wage protection system for two or more months, then the services related to that company will be stopped and the employees of that company are able to transfer to another company.

Recently GOSI (General Organization for Social Insurance) announced it will penalized a company with SR 10,000.00 if they did not enroll the employee or workers in the system as it is noticed employers are excluding their employee from enrolling into the system.

Ministry of Labor implemented phases of wage protection system in Saudi Arabia starting form the year 2013 for the companies with 3000 employees or more.  Till 2015, Ministry implemented 8 phases, 9th phase is about to implement on February 01, 2016 for the companies whose employees are in between 11 to 100.