Saudi Gazette report

RIYADH — The Ministry of Human Resources and Social Development (HRSD) has announced that its Wage Protection Program now covers more than 900,000 private sector establishments across Saudi Arabia, achieving a compliance rate exceeding 88%.

The program has become a cornerstone of efforts to ensure a transparent, safe, and attractive work environment for both employers and employees in the Kingdom.

Launched in its advanced version in 2020 via the Mudad platform, the Wage Protection Program introduced the “Salary Management System” to streamline compliance for private sector establishments of all sizes.

This system has enabled organizations to adopt the program’s requirements with ease, supporting the development of a regulated and transparent labor market.

Initially, the program targeted only 300 establishments, but it expanded in stages to cover over 900,000 businesses by 2024.

Today, it safeguards the wages of more than 8.5 million male and female employees in Saudi Arabia.

HRSD attributes the program’s success to its role in fostering compliance, preserving worker rights, and enhancing the labor market’s attractiveness to foreign investors.

Beyond improving workplace practices, the Wage Protection Program has significantly boosted Saudi Arabia’s global standing.

It has contributed to the Kingdom securing second place globally in the index for combating human trafficking crimes.

The program has also been instrumental in reducing commercial cover-up crimes, decreasing reliance on cash transactions, and creating an environment conducive to attracting foreign investments.

The program’s implementation has had a profound impact on labor disputes, resulting in a noticeable decline in the percentage of labor-related cases.

By ensuring wage transparency and fairness, the program has effectively preserved the rights of both employers and employees.

The inclusion of micro-enterprises in the program’s final stages has further solidified its role in fostering workplace stability and reducing conflicts.

The Ministry highlighted that the program reflects Saudi Arabia’s commitment to advancing its labor market, aligning with the broader goals of the Kingdom’s Vision 2030.

By improving transparency, safeguarding worker rights, and promoting fair business practices, the Wage Protection Program serves as a vital tool for driving economic growth and enhancing the Kingdom’s appeal as a global business hub.