Kingdom of Saudi Arabia Wages Protection System WPS

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KSA WAGE PROTECTION SYSTEM Saudi Arabian Monetary Agency (SAMA) and Saudi Labor Ministry are working together on WPS Wage Protection System KSA. The goal of Wage Protection System is to make sure that all Pvt sector worker or employees are receiving their monthly payment as per the agreement of the contract terms to tracks the salaries of National and expatriates in Saudi Social Security.
WPS Wages protection system KSA
WPS Wages protection system KSA

Comply on Time Of Employer

Duration of compliance for the Employer within two months of it is obligatory and have to upload the information to MOL Via e-service program, In the case of unable, the companies will face the following problem from the Ministry of Labor.

Suspend All Services

If the employer fails to submit then, Labor Ministry will suspend and deny all the services of the companies Renewal of Work permit etc.

Renewal of Work Permit

Except for continue and renewal of work permits. Related post: Iqama or Muqeem card

Permission to Transfer

Ministry of Labor will allow all the worker of the employer to transfer to another sponsor without the authorization of current company.

Recommend: Transfer without the approval of the current Sponsor.

Companies of Private Sector Require to

Registration of Company

The company will register with WPS Wage Protection System

Data Submit to Ministry of Labor

The company should provide wage data to MOL and the salaries of Worker through e-service online program.

Open a Pay Roll With Bank

The employer should open a payroll file with Certify of Saudi bank.

Bank Accounts of Employees

The Sponsor should begin with a local bank account for employees and paid the salaries by their bank's accounts.

Delay of Salaries in Wage Protection System (WPS)

Salary Delay for 2 Months

If the Employer delays Salary for their employees for two months, then the Ministry of Labor will block all the service of the companies except renewal of work permit.

Delay of Salary for 3 Months

If the Employer delays Salary for their employees for three months, then the Ministry of Labor will allow the worker of the company to transfer without employer's approval, and it will lose workforce.

WPS Compulsory for Employers

In Saudi Arabia WPS for the sponsor, businesses and organization became compulsory. It was begun in Jun of 2013 for those companies have human resources more than 3000.

September 2013

It made mandatory in Sep 2013 for those businesses that have human resources more than 2000.

In December 2013

If the companies that have human resources with 1000.

In November 2014

Those companies also registered with human resources with over 500

WPS Steps In 2015

  1. The Steps of WPS in continued in the year of 2015
  2. First step starting from month of Feb 2015 it made compulsory for employers having more than 320 human resources
  3. Second Step, in the month of April 2015 it made essential with over 240 worker
  4. Third steps, from month June 2015 sponsor with over 170 human resources
  5. Fifth step, In August 2015 for with more than 130 workforce
  6. The sixth step, In the month of Nov 2015 it is made mandatory for the employers having more than 100 Manpower,

Wage Protection System In 2016

From the first date of the month of Feb 2016 for the Wage Protection System is about to implement for the Sponsor with more than 11 employees and Less than 100 employees.

Wage Protection System In 2017

  1. First step starting from month of March 2017 it made compulsory for employers having 20-29 laborers
  2. Second Step, in the month of July 2017 it will make essential with 15-19 laborers
  3. Third steps, from month Sep 2017 sponsor with 11-14 laborers

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HowGear: Kingdom of Saudi Arabia Wages Protection System WPS
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