Wage Protection Program: Enhancing Labor Market Integrity in Saudi Arabia

The Wage Protection Program , spearheaded by the Ministry of Human Resources and Social Development, aims to create a safe and equitable work environment in the private sector. Key objectives include increasing transparency, improving labor market attractiveness, and safeguarding the rights of both Saudi and expatriate workers, and employers.

 Launched in 2020 through the Mudad platform, the program leverages the Payroll Management System to ensure compliance by all private sector establishments.

 Initially targeting 300 establishments, the program has gradually expanded, covering over 900,000 institutions today. In 2024, a remarkable 88% of private sector establishments used the program, safeguarding the wages of more than 8.5 million employees. This translates to over 300,000 wage files, amounting to SAR35 billion, processed monthly.

 The program has yielded significant positive outcomes. It has contributed to Saudi Arabia securing the second place, globally, in the combating human trafficking crimes index, and decreased the number of incidences of commercial cover-up crimes and reduced reliance on cash transactions.

 By creating a safe and attractive work environment for expatriates, the program has also helped attract foreign investment.

 It has contributed to lowering significantly the number of labor disputes, including micro-enterprises.

 Key to the program's success is the user-friendly Mudad platform, where the Payroll Management System integrates seamlessly with a wide network of local banks, enabling establishments to transfer salaries easily and efficiently. This streamlined process, combined with effective customer support for both employers and employees, has facilitated widespread compliance.