Wage protection in Saudi Arabia: 10 million workers and 94% compliance
The Ministry of Human Resources and Social Development in Saudi Arabia announced a major milestone in its efforts to regulate the labor market, with the Wage Protection Program successfully documenting the salaries of more than 10 million private sector workers. This achievement is a pivotal step towards achieving the goals of 2025, ensuring the stability of the contractual relationship between employees and employers, protecting the financial rights of both parties, and fostering productivity in a safe and reliable work environment.
Background and development of the Wage Protection Program
The Wage Protection Program was launched in 2013 as one of the most important government initiatives to regulate the Saudi labor market. From its inception, the program aimed to monitor wage payments for all employees in the private sector (both Saudi and expatriate) and ensure that wages were deposited into their bank accounts on the specified dates and in the amounts agreed upon in their documented employment contracts. The program underwent gradual implementation phases, beginning with large establishments and then extending to medium and small enterprises, to ensure a smooth transition and effective application of the system.
Record numbers reflect the success of the system
The program has witnessed exceptional growth, with over one million establishments joining the “Mudad” digital platform, representing 94% of all private sector establishments in the Kingdom. Furthermore, establishment compliance with the program's requirements has exceeded 85%, with over 17 million payroll files processed through the platform. The program's operational mechanism relies on direct technical integration with banks and financial institutions, enabling the electronic documentation of financial transfers and real-time verification of disbursements. This reduces labor disputes and provides an accurate database to support sustainable development plans.
Importance and impact on the national economy and investors
The success of the Wage Protection Program is a cornerstone for enhancing the reliability of the Saudi labor market and its attractiveness to both local and international investments. Domestically, the program guarantees workers' rights, increasing their job stability and loyalty, which in turn positively impacts their productivity. Internationally, this institutional discipline strengthens the Kingdom's reputation as a model work environment that respects workers' rights and applies the best international standards—a crucial factor in attracting global talent and foreign investors seeking stable and transparent markets.
Future steps and Vision 2030
The Ministry's efforts didn't stop there. It launched the "Documented Contract" initiative as an enforceable instrument, whereby wage data recorded on the "Mudad" platform is adopted as a decisive legal reference in labor cases, thus expediting litigation and enforcement procedures. Supervisory teams continue to proactively monitor performance indicators to encourage establishments to adopt a culture of self-compliance. These ongoing efforts support the stability of the national economy and drive development, in line with the objectives of the Kingdom's Vision 2030 , which aims to build a prosperous economy, a vibrant society, and an attractive work environment.
