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- Mudad to stop all Employer services on Delaying Salaries to workers for 3 months
Posted by : Aahil Shaik
Monday, December 25, 2023
Mudad to stop all Employer services on Delaying Salaries to workers for 3 months
The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia said that if an employer doesn't pay salaries to their workers on time for three months in a row, they will lose all of their services and the worker will be free to transfer service to another employer without their present employer's permission. Trending Video : Procedure to report salary delay in Saudi Arabia
The Mudad platform, which is connected to the ministry, says that this punishment will be applied even if the worker has a legal work permit. The ministry said that all services would stop if salaries were not paid on time for two months, except for the service of granting and renewing work permits.
- The Mudad has reduced the time to companies and other businesses to explain the reason for delaying salaries to their workers from 30 days to 10 days. As required by the Compliance Law, the platform also reduced the time workers had to accept or reject salary justifications from 7 days to just 3 days. The notice said that if the worker failed to reason within the time limit, the company representative's justification would be processed automatically.
- Through the social insurance scheme, the Mudad platform provides information about businesses and workers. It also updates and reviews information on employee salaries and works with micro, small, medium, and large companies, with fees starting at 460 riyals for businesses with 9 or fewer employees, 575 riyals for businesses with 10 to 29 employees, 690 riyals for businesses with 30 to 59 employees, and 805 riyals for businesses with 60 to 90 employees. Most Viewed : Saudization of Sales, Purchasing and Project Management professions comes into force
- For businesses with 100 to less than 1,000 employees, the membership fee is 920 riyals. The business will not have to sign any deals or contracts with banks in order to handle the payroll system. However, the businesses will have to make a deal with the banks if they does not want to work with the Mudad platform.
- The owner of a business can add workers to Mudad, even if the workers are not already on the social insurance scheme. This includes part-time workers. It lets you take money out of an employee's pay, give them benefits, or give them bonuses before the money is transferred.
- Because of the platform allows companies to pay their workers more than once a month, and they can choose which limited workers get paid each time. It is possible for workers who are not yet part of the social insurance system to become part of it through the Mudad platform. Recommend : Saudi Arabia limits visit to Rawdah Al-Sharifa at Prophet's Mosque in Madina once in a year