Saudi Ministry Warns: Salary Delays Can Lead to Inspections and Service Suspensions

The Ministry of Human Resources and Social Development (MHRSD) has reiterated that private-sector employers must upload wage protection files to the Mudad platform on time. For expatriate workers living and working in Saudi Arabia, timely payroll uploads are not just an administrative requirement — they are a key protection that can prevent wage disputes, preserve worker mobility, and avoid company-wide service suspensions.

What employers must know: Mudad, timelines and the 2025 update

Mudad is the ministry’s mandatory digital payroll and compliance platform used to submit Wage Protection System (WPS) files and monitor payroll compliance. As of March 1, 2025, the deadline to upload WPS wage files via Mudad was shortened to 30 days after the salary due date (down from the previous 60 days). This change means employers should be even more diligent about timely payroll reporting.

The enforcement and inspection process follows a clearly defined reminder and escalation timeline inside Mudad:

• Day 0 – When wages are due, Mudad sends an initial email reminder to the employer to upload wage data.
• Day 10 – A second reminder is issued if there is no submission.
• Day 15 – A final warning is sent to the employer.
• Day 20 – If wage files remain unsubmitted, Mudad notifies the Inspection Department to arrange an on-site inspection.

Note: Even though on-site inspection is triggered at day 20 of non-submission, the formal upload deadline to avoid potential penalties is 30 days after the salary due date — employers must both upload files and ensure the payroll data accurately reflect salary payments.

How salary delay justifications work (employer and employee steps)

Mudad includes a formal justification workflow for employers and employees:

• Employers have 10 days to provide a justification in Mudad for delayed salary payments.
• Employees then get 3 days to accept or reject the employer’s explanation through the platform.
• If an employee does not respond within 3 days, the system automatically accepts the employer’s justification.

The system is designed to flag suspicious entries such as unreasonable basic wage changes, excessive deductions (over 50% of wage), or no recorded basic wage for extended periods (90+ days). These triggers can lead to further ministry action.

Penalties and consequences for repeated salary delays

The MHRSD enforces progressive penalties for repeated salary delays that affect worker rights and company services:

• Two consecutive months of delayed salaries: suspension of most company e-services — but issuance and renewal of work permits may remain available.
• Three consecutive months of delayed salaries: full suspension of company services, which can severely disrupt operations.
• Employees affected by repeated salary delays gain the right to transfer to another employer without the current employer’s approval, even if their work permit is still valid.

For expatriates, this transfer right is especially important: it removes a major barrier to leaving an employer who consistently fails to pay wages on time.

About the Mudad platform: features and fees

Mudad integrates with social insurance records and provides a range of payroll management and compliance features useful to employers and HR teams — including those who employ many expatriates. Key features include:

• Integration of company and employee data from the General Organization for Social Insurance (GOSI).
• Ability to add part-time, non-social-insurance, or other non-standard employees.
• Options to include deductions, allowances and bonuses before processing payments.
• Support for multiple salary payments per month or payments to selected employees.
• Automated violation monitoring and employee response workflows.

Subscription fees (published rates as of 2025) are tiered by company size:

• SR 460: companies with 1–9 workers
• SR 575: 10–29 workers
• SR 690: 30–59 workers
• SR 805: 60–99 workers
• SR 920: 100–999 workers

Companies that use Mudad do not need a separate bank payroll contract. Employers that do not use Mudad are required to have payroll arrangements with approved banks to comply with WPS reporting rules.

Newer tools: Flexible Salary and employee financial access

In 2025 Mudad introduced a Flexible Salary service (in partnership with third-party financial providers) that allows employees to access earned wages before payday. This can provide short-term cash flow support for expatriate workers who may face unexpected expenses. Employers considering this option should confirm which providers are supported by Mudad and ensure the service terms are fully understood by staff.

Practical guidance for employers and expats

For employers:

• Ensure payroll cycles and WPS file uploads are scheduled well in advance of the 30-day upload deadline.
• Use Mudad’s validation tools to check for flagged entries (large deductions, missing basic wage records, or inconsistent data).
• Respond promptly to Mudad reminders and provide transparent justifications if a delay occurs — documentation helps in case of inspection.
• Maintain clear communication with expatriate employees about payroll timing and any temporary issues that may affect payment dates.

For expatriate employees:

• Monitor your pay records via your employer and ask to see WPS evidence if payments are late.
• If your employer submits a justification for late pay and you disagree, respond within the 3-day window in Mudad to register the rejection.
• If wages are delayed repeatedly, remember you may be entitled to transfer to another employer without the current employer’s approval after the specified period of non-payment.
• Use official resources to confirm your rights and to report violations.

Where to verify official information

Always check the latest rules and platform details on official government pages before taking action. Useful official resources include:

• Ministry of Human Resources and Social Development (MHRSD) — official announcements and policy updates.
• Mudad platform — the payroll upload portal and user guides.

Regulations and platform features can evolve. If you are an employer or an expat employee unsure about the application of any rule, consider seeking direct clarification from MHRSD or a qualified labor advisor.

Bottom line for the expat community

The MHRSD’s strengthened timelines make timely payroll reporting more critical than ever. For expatriates, Mudad is a practical protection: it creates a recorded path to challenge late wages and — in cases of persistent non-payment — enables worker mobility by allowing transfers without employer consent. Employers who prioritize transparent, timely payroll practices reduce the risk of inspections, fines, service suspensions, and reputational damage.

Stay informed, keep records, and check official MHRSD and Mudad pages frequently to protect your rights and maintain compliance.