Ministry set to implement wage protection system

The Ministry of Labor announced Monday that it will begin requiring all companies with 3,000 or more employees and all private schools to implement the Wage Protection System (WPS) program starting on Sept. 1.
The program requires companies to submit wage information via the e-service program to the Ministry of Labor.
Abdullah Abuthnin, officer of inspection and development at the Ministry of Labor, said the program is available for trial before the mandatory implementation date, and a number of establishments have already begun using the program to submit files to the ministry.
The trial period, which began last June, allows companies to experiment and evaluate the service, as well as communicate with banks to achieve the requirements of the program before the mandatory date of implementation.
The ministry said in its press statement that it will stop all ministry services for companies that fail to implement the program, with the exception of labor permit renewal services.
In the event that a company continues to delay implementation, the ministry will halt all its services and will allow employees of the company to transfer services to another company without permission from the employer.
The WPS program is intended to monitor the payment of wages to Saudi and non-Saudi employees in the private sector by requiring employees to submit current pay stubs or documentation demonstrating that employees are paid according to their working hours and salaries agreed upon with the employer.
The first phase implementation of the program will take effect Sept. 1, and will apply to all private sectors with 3,000 employees or more, as well as all private schools, regardless of size.
The ministry will announce further details regarding subsequent stages of implementation for other smaller companies and establishments.
The ministry will use the program to closely monitor that all dues and wages of employees in the private sector are paid in a timely manner and in the amounts agreed upon, said Abuthnin. All data submitted via the program to the Ministry of Labor will be reviewed by the ministry to confirm that wages paid correspond to information recorded in the WPS program. The program will also help the inspection team of the ministry to identify those companies that require employees to perform work outside their scope or at their own expense, and companies that are involved in cover-up cases.
Regarding the program’s operation, Abuthnin explained that the WPS program links the employer, the bank, and the employee. Employers are first required to open bank accounts or facilitate the release of ATM cards for their employees from a local bank, as well as open a wage payment file authenticated by the bank. Then, employers must register with the WPS program at the ministry’s website at www.emol.gov.sa. All information regarding monthly payment of wages must then be submitted to the ministry using the e-service.
Said Abuthnin: “The employer — as a requirement of the program — must send a file indicating the payment of the monthly wage to the bank, after which it must release the payment to the employee after the file has been received by the bank, authenticated, and updated to the system. Employers are strongly urged to update the system with any changes to employee information or wages so as to ensure that correct payment information is applied during payment. All private companies should being taking necessary steps for implementing the program in order to avoid any penalties.
The WPS program does not play a role in determining employee’s wages in the private sector, but rather is aimed at monitoring the process of wage payments to employees, he noted. Employers are not subject to any costs by the Ministry of Labor to implement the program.