Saudi Arabia Wage Protection System 2026
Saudi Arabia’s most awaited system will be launched in just after two days, and Saudi Arabian companies and business owners have until Thursday at the latest to register for the “Wage Protection System.” The Ministry of Human Resources and Social Development has set this as the last day.
What is the Wage Protection System?
This electronic program requires all private sector businesses to deposit their employees’ salaries directly into their bank accounts. The primary objective is to guarantee that each employee always gets paid in full and on schedule. This establishes a transparent, official record of all salary payments while safeguarding employees’ rights.
What Makes This Deadline So Crucial?
The ministry has long urged businesses to sign up for this system. The last day to register without incurring penalties is Thursday, May 23, 2024, or 16 Dhu al-Qi’dah 1445 AH.
What Takes Place If a Business Misses the Due Date?
There will be severe repercussions for businesses that don’t register by the deadline. According to the ministry, noncompliant individuals will no longer receive any of its services. This implies that a company may be prohibited from the following activities:
- obtaining fresh work permits.
- extending current work permits.
- utilizing additional crucial employment-related government services.
Until the business registers with the system and demonstrates that it is correctly paying its employees through it, the services will remain suspended.
A Step in the Right Direction for a Fairer Workplace
A crucial component of Saudi Arabia’s endeavor to modernize its labor market and guarantee equity and openness for all employees is the Wage Protection System. It promotes the kingdom’s larger economic objectives and fosters trust between employers and employees.
Owners of businesses in Saudi Arabia are required to sign up for the Wage Protection System right away. The last day is Thursday, May 23, 2024. You must register on time to avoid a complete suspension of your company’s access to government services.
