Next phase of Saudi wage protection program takes effect in August

newsimageJEDDAH: Starting Aug. 1, the Ministry of Labor and Social Development will begin enforcing the mandatory wage protection system on private establishments with more than 60 employees. According to the ministry’s spokesman, Khaled Aba Al-Khail, the 11th phase of the program will include more than 7,000 establishments, and a total of more than 481,000 employees. In a statement via the ministry’s Twitter account, 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. Establishments that do not pay salaries in time will be fined up to SR3,000 ($800) per worker, the statement read. 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.