Saudi Arabia salary protection scheme covers 3000 private company workers

Published:  26 Jun at 6 PM
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Tagged: Australia, Money, Banking
The first stage of Saudi Arabia’s salary protection scheme had now been instituted, with 3,000 expats working in private companies now covered.

The scheme involves new rules allowing the kingdom’s Ministry of Labour to check that private company employees receive their monthly salaries on the due date. The system is a joint implementation along with Saudi Arabia’s banks and companies in the private sector.

According to secretary general of the Media and Banking Awareness Committee Talat Zaki Hafiz, all private companies must make sure workers’ monthly salaries are paid into their accounts at the set time. Hafiz added that the new system was set in place to protect the rights of workers as set out in their contracts.

Saudi’s banks already have a ‘salary product’ which deals with transfers, and private companies will now need to provide banks with lists of their employees so that new accounts can be opened. The new rules also state that expat employees whose iqamas have expired will not be allowed to draw out their salaries.

The accounts’ legitimacy, said Hafiz, will be based on the validity of workers’ documents, and banks will contact clients before freezing their accounts. At the same time, Hafiz denied rumours that expat bank accounts will be supervised by the Passport Department in order to restrict the transferring of money to workers’ home countries.
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