Wage protection: Documenting the salaries of 10 million workers in Saudi Arabia with a compliance rate of 94%
In a move reflecting the accelerating pace of digital transformation and structural reforms in the Saudi labor market, the Ministry of Human Resources and Social Development announced a record achievement represented in documenting the wages of more than 10 million workers in the private sector through the “Wage Protection” program during 2025. These figures confirm the success of the strategic plans aimed at regulating the contractual relationship and preserving the financial rights of all parties.
Exceptional growth via the "Madad" platform
Official data revealed that the program has witnessed remarkable growth, with over one million establishments the "Mudad" platform, representing a coverage rate of 94% of all private sector establishments in the Kingdom. This achievement extends beyond mere registration; the actual compliance rate with the program's requirements has exceeded 85% , with the system successfully processing over 17 million payroll files . This reflects the efficiency of the digital infrastructure developed to connect the Ministry with the banking sector.
Historical context and importance of the program
The Wage Protection Program is one of the most important pillars of labor market reform launched by the Kingdom in recent years. Before its implementation, the market faced challenges related to delayed payments or reliance on cash transactions that were difficult to trace, leading to protracted labor disputes. The program provides a technological mechanism that ensures salaries are transferred through official banking channels, enabling regulatory bodies to verify in real time that establishments are paying wages on time and in the amounts agreed upon in contracts.
Economic impact and strengthening the investment environment
The significance of this achievement extends beyond mere organizational aspects, encompassing a broad economic impact. A transparent and reliable wage system enhances the attractiveness of the Saudi market to both local and international investors, as the protection of rights and the rule of law are among the most important criteria for a competitive business environment. Furthermore, this institutional discipline contributes to increased employee productivity through financial and psychological stability, and significantly reduces the flow of labor disputes to the courts, thus saving time, effort, and resources.
The initiative of the notarized contract as an enforceable instrument
In a significant development that strengthens the system, the Ministry launched an initiative to adopt the "notarized contract" as an enforceable document. This step means that wage data recorded on the "Mudad" platform has become a decisive legal reference, facilitating litigation procedures and making the fulfillment of rights faster and more effective without the need for lengthy court proceedings. The monitoring teams continue to proactively track indicators to ensure the sustainability of this commitment, which aligns directly with the objectives of the Kingdom's Vision 2030 aimed at building a prosperous economy, a vibrant society, and a labor market that attracts talent.
