Riyadh: Saudi Arabia is ready to implement a wage security plan for all workers in the private sector. The main purpose of the Wage Security Scheme is to ensure that contract workers are paid on time.
The final phase of the project will begin on December 1, according to the Ministry of Manpower and Social Development. In the final stage, the pay security scheme covers small firms with one to four employees.
The condition is that every month the salary should be deposited in the bank accounts of the workers. Failure to pay on time and discrepancy between the salary and the basic salary registered with the General Organization for Social Insurance are violations of the law under the Wage Security Scheme.
If the violation is noticed, the company will have to pay a fine of 3,000 riyals per worker. In addition, in case of non-payment of wages for three months, the worker will be allowed to change the sponsorship without the permission of the employer. In the first phase, the project was implemented in companies employing 3,000 or more people.