Under Saudi Arabia’s Wage Protection Program, the Mudad platform flags employers for payroll violations—like unreasonable wages, delayed salary filings, or excessive deductions—ensuring compliance with labor standards.

How Mudad Detects Wage Violations

Illogical Basic Wages

Assigning a basic wage that’s unusually low or high compared to industry or internal norms triggers automatic violation alerts on the platform.

Excessive Salary Deductions

Deductions exceeding 50% of an employee’s wage are considered non-compliant and prompt violation notices.

Missing or Incomplete Wage Records

If an employer fails to record an employee’s basic wage in Mudad for over 90 days, leaves it blank, or lacks any wage disbursement record, violations are issued.

Automated Enforcement Through Reminders and Inspections

Reminder Timeline for Wage File Submission

Mudad issues reminders starting when wages are due:

• Days 0–10: First email reminder to upload wage files.

• Day 10: Second notification if still not submitted.

• Day 15: Final warning issued.

• Day 20: If no submission, an inspection request is automatically sent to the Inspection Department. 

Justification Flow and Employee Response

Employers have 10 days to submit justification for a delayed salary. The employee then has 3 days to accept or reject it in the system. If there's no response, the justification is accepted automatically. 

Consequences of Prolonged Salary Delays

Under MHRSD regulations:

• Delay of 2 months: All services are suspended except for issuing and renewing work permits.

• Delay of 3+ months: All services suspended; the employee may transfer to a new employer without needing consent—even if the work permit is still valid. 

Why It Matters

This automated wage monitoring safeguards employee rights and encourages employer compliance—helping to prevent labor disputes and promoting fairness across the private sector.

Related Resources

For broader context, refer to how adherence to the Wage Protection Program began as early as 2013 and progressively included smaller firms through the Mudad platform. 

Explore how wage protection ties into job mobility and contractual reforms under Saudi labor law. For instance, under certain conditions like three-month non-payment of salary, workers can transfer jobs without consent.