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Saudi Arabia: Final wage protection system rolled out to cover all private sector workers

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"Saudi Arabia implements final phase of wage protection program today," 1 Dec 2020

Saudi Arabia’s Ministry of Human Resources and Social Development (HRSD) will implement the 17th – the final phase - of the wage protection program today, Dec.1, 2020.

In this phase, companies that employ one to four workers will be obligated to deposit the workers' wages in their bank accounts. Thus, all facilities are now bound by such an obligation.

According to Argaam's data, the wage protection program, first introduced in August 2013, monitors the process of disbursing wages for all workers (nationals and residents) in private-sector facilities. It aims to establish a database that comprises updated information about wage payment, and determining the level of commitment by companies towards due payment of wages.