Wage Protection Program (WPP) In Saudi Arabia: Adherence For Employers And Companies
Category: Saudi Arabia

The Ministry of Human Resources and Social Development (MHRSD) emphasizes the critical importance for companies and employers to comply rigorously with the rules of the Wage Protection Program (WPP). Submission of monthly wage files of workers through the "Madad platform" is mandatory to avoid incurring fines within the system. Learn about the program's significance, implementation stages, and the necessary steps for adherence.

Wage Protection Program (WPP): Ensuring Fair Compensation in Saudi Arabia

The Ministry of Human Resources and Social Development (MHRSD) has issued a stern reminder to all companies and employers in Saudi Arabia to strictly adhere to the regulations of the Wage Protection Program (WPP). Compliance with this program is not just a formality; it is essential for maintaining a harmonious and just work environment.

Mandatory Submission:

Under the WPP, it is mandatory for companies to submit monthly wage files of their workers through the "Madad platform." This crucial step ensures transparency and accuracy in salary payments, preventing any discrepancies that could lead to disputes.

The primary goal of the WPP is to reduce wage-related conflicts and create an environment where both Saudi and expatriate workers receive their rightful salaries on time. This not only benefits employees but also fosters a positive atmosphere within the private sector.

Implementation Stages:

The WPP was introduced in stages, beginning with large companies having 3,000 or more workers in 2013. Its coverage expanded over time, reaching small companies with just 1 to 5 workers in 2020. This comprehensive approach demonstrates the commitment of MHRSD to ensure fair compensation practices across the board.

Ensuring Adherence:

Employers can familiarize themselves with the WPP's requirements and steps for compliance by visiting the Ministry's official website or using the user-friendly Madad platform. By following the outlined procedures, employers contribute to a healthier work environment and help maintain the integrity of the private sector.

Understanding the WPP:

The WPP, also known as the Wage Protection System (WPS), was introduced as a collaborative effort between MHRSD and the Saudi Central Bank (SAMA) in 2013. Initially targeting large companies, it extended its reach to smaller enterprises with 1 to 5 workers. The program's core purpose is to guarantee that private sector workers, both Saudis and expatriates, receive their due salaries according to their employment contracts. It also ensures meticulous tracking of wages within private companies.

Penalties and Consequences:

Failure to consistently pay employee salaries for three months can lead to severe penalties. Companies may face suspension of services, a financial fine of 3,000 riyals per delayed salary, and the potential for workers to transfer jobs without the need for employer consent.

07 Aug, 2023 0 1006
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