The Saudi Ministry of Human Resources and Social Development (HRSD) announced that over 900,000 businesses comply with the Wage Protection Program. The program’s compliance rate has now surpassed 88%, reflecting significant progress in creating a transparent work environment.
Since its launch in 2020 via the Mudad platform, the program has introduced a “Salary Management System” to ease compliance efforts. This system allows businesses of all sizes to meet the program’s requirements, promoting transparency across Saudi Arabia’s labor market.
Massive Expansion Ensures Wider Coverage
Initially targeting just 300 establishments, the program has expanded in phases to include over 900,000 private sector businesses. Currently, it safeguards the wages of more than 8.5 million employees, ensuring fair practices in workplaces nationwide.
The HRSD attributes the program’s success to fostering compliance and preserving worker rights while improving the labor market’s appeal to foreign investors. The initiative has elevated Saudi Arabia’s global reputation, securing the second spot in the index for combating human trafficking.
By decreasing reliance on cash transactions and tackling commercial cover-up crimes, the program supports a safer economic environment. It has also significantly reduced labor disputes, contributing to a more stable workplace atmosphere.
Vision 2030: A Key Pillar
The program’s inclusion of micro-enterprises highlights its comprehensive approach to improving workplace transparency and reducing conflicts. The Ministry highlighted that this program reflects Saudi Arabia’s commitment to advancing its labor market. This initiative aligns with the broader goals of the Kingdom’s Vision 2030.
By improving transparency and safeguarding worker rights, the Wage Protection Program serves as a vital tool. It drives economic growth while enhancing the Kingdom’s appeal as a global business hub.
