Mudad Flags Unfair Wages and Late Salaries — Essential Guide for Expats

The Ministry of Human Resources and Social Development (MHRSD) in Saudi Arabia has tightened payroll oversight through the Wage Protection Program (WPP) on the Mudad platform. Recent guidance makes clear that unusually low or excessively high basic salaries, large deductions, and delayed or missing wage records will now generate automatic alerts and can trigger inspections and penalties. For expatriates working in the Kingdom, these changes strengthen wage protections — but they also mean employers must be precise and timely when submitting payroll data.

What Mudad will flag as violations

Mudad’s automated checks compare reported wages against sector norms and existing records. The system will show an alert on an employer’s violation record when it detects “illogical” wage entries or non-compliance. Triggers include:

• Basic salary unusually low or excessively high: Wages that fall far outside expected ranges for a role or sector are flagged as potential violations.
• Salary deductions over 50%: Any deduction exceeding half of the employee’s wage will generate an alert.
• Basic wage not recorded for more than 90 days: Failing to enter the basic salary in Mudad for three months is a red flag.
• Basic wage entered in incorrect fields: Improperly formatted or misfiled entries can trigger alerts and complicate compliance reviews.
• Wage not paid or no record of payment: Missing disbursement records or unpaid wages prompt immediate action from the system.

How the notification and inspection process works

Mudad follows a step-by-step notification process once wages are due. Understanding this timeline helps expatriates know what to expect and when to escalate a case:

1. First reminder: Mudad sends an initial notice to the employer when wages become due.
2. Second reminder (after 10 days): If there is no action, a second reminder is issued at day 10.
3. Final warning (day 15): A strong warning is sent on the 15th day.
4. Inspection trigger (day 20): If no wage file is submitted within 20 days of the due date, Mudad automatically requests an inspection by the Ministry’s Inspection Department.

Employers are given a formal 10-day window within Mudad to explain any salary delay. Employees then have three days to accept or reject the employer’s explanation in the system. If the employee does not respond within those three days, the system automatically accepts the employer’s justification — so it’s important for affected workers to monitor Mudad notifications and respond promptly.

Penalties and service suspensions employers should know

The MHRSD’s enforcement framework is firm:

• 2-month delay: If salaries are delayed for two consecutive months, most company services will be suspended — though issuing and renewing work permits remain available.
• 3-month delay: Delays exceeding three months lead to full suspension of all company services.
• Employee mobility: Affected employees may transfer to a new employer without the current employer’s approval, even if their work permit is still valid.

Beyond suspensions, persistent non-compliance can result in fines, classification downgrades, and other administrative sanctions under Saudi labor regulations.

Recent changes and additional tools

The ministry has been progressively strengthening payroll compliance. Notable recent steps include:

• In February 2025, the MHRSD shortened the maximum period for uploading wage files on Mudad from 60 days to 30 days to encourage faster reporting and reduce gaps in payroll oversight.
• In mid-2025, new private-sector services such as the Flexible Salary Service (in partnership with fintech providers) began offering employees the option to access earned wages before payday — a move aimed at protecting workers while helping employers meet compliance targets.
• The WPP via Mudad now covers all private sector companies regardless of size, requiring payroll submissions and monthly salary payments in Saudi Riyals directly to employees’ bank accounts.

What this means for expatriates

For expatriate workers, the enhanced monitoring through Mudad is good news: it increases transparency and provides a clearer route to remedy unpaid wages. Key takeaways:

• Monitor your records: Regularly check your payslips and the Mudad system to ensure your basic wage is correctly recorded and paid. Mistakes in the wage fields or missing entries can cause delays in enforcement.
• Act quickly on notifications: If an employer submits an explanation for delayed wages, you have three days in Mudad to accept or reject it. Failure to respond may be taken as acceptance of the employer’s reason.
• Report unpaid wages: If your wages are unpaid and your employer fails to respond, you can escalate the issue to the MHRSD for inspection. The ministry’s inspectors can visit workplaces when Mudad triggers a request.
• Know your rights: If delays extend to two or three months, be aware that services may be suspended for the employer and you may be allowed to transfer to a new employer without consent.

How to file a complaint or get help

If you are an expat dealing with unpaid wages or wage-record errors, start with these steps:

1. Document your pay history: save payslips, bank statements, employment contract, and any communication with your employer.
2. Check your Mudad record: confirm your basic wage is correctly entered and watch for any employer explanations in the system.
3. Respond to employer explanations promptly (within three days) to avoid automatic acceptance.
4. File a complaint with the Ministry if wages remain unpaid or records are missing. Use the official MHRSD portals for the fastest, traceable action: MHRSD (ministry website) and Mudad (Wage Protection Platform).

Practical tips for employers (and what expats should expect)

Employers must be diligent in recording wages correctly and on time. For expatriates, transparency from employers means fewer disputes. Employers should:

• Submit wage files within 30 days at most and respond promptly to Mudad reminders.
• Ensure basic wages are entered in the correct fields and that deductions are transparent and lawful.
• Keep clear payroll records and provide employees with payslips tied to bank transfers in Saudi Riyals.

Final word for expats

The MHRSD’s tightened rules and Mudad’s automated alerts are designed to protect workers and encourage employer compliance. For expatriates, the system provides quicker detection of wage irregularities and a clearer path to inspections and remedies. Still, staying proactive—monitoring Mudad entries, keeping documentation, and responding quickly to system notifications—remains the best protection against unpaid wages.

If you need further assistance, start at the official MHRSD and Mudad portals linked above. These government platforms are the primary channels for filing complaints and tracking the status of inspections and enforcement actions.