Saudi Arabia: Pay transfer via banks streamlined
04:16AM Fri 1 Mar, 2013
[caption id="attachment_27573" align="aligncenter" width="580"] By June 1, companies are required to ensure that their employees receive their salaries through banks.[/caption]
JEDDAH: The Labor Ministry has given the private sector until June 1 to make arrangements to ensure that their employees’ salaries are deposited with banks, a source told Urdu News.
The ministry has asked the companies employing over 3,000 employees to complete all formalities before the June deadline after which they will be bound to transfer their employees’ salaries to banks.
To make sure that the system works smoothly and that the employees are paid salaries, dues and end-of-service benefits through banks, the companies will be connected through a website created by the SAMA and the Labor Ministry. The ministry will monitor the transfer of salaries to the banks.
The move aims to ensure that the employees in the private sector are paid regularly and their rights are safeguarded, the source said.
Regarding the extension in deadline given to the private sector for the step, the source said the plan to make all the companies comply with the measure would be implemented in phases.
The first phase will begin from June when companies having 3,000 employees will be made to transfer employees’ salaries through banks.
The second phase will begin from September when companies with 2,000 or more employees will be required to pay their employees through banks.
The third phase will begin from Dec. 1 when companies having 1,000 or more employees will be made to follow the new regulation.
By June 1, companies are required to ensure that their employees receive their salaries through banks.[/caption]
JEDDAH: The Labor Ministry has given the private sector until June 1 to make arrangements to ensure that their employees’ salaries are deposited with banks, a source told Urdu News.
The ministry has asked the companies employing over 3,000 employees to complete all formalities before the June deadline after which they will be bound to transfer their employees’ salaries to banks.
To make sure that the system works smoothly and that the employees are paid salaries, dues and end-of-service benefits through banks, the companies will be connected through a website created by the SAMA and the Labor Ministry. The ministry will monitor the transfer of salaries to the banks.
The move aims to ensure that the employees in the private sector are paid regularly and their rights are safeguarded, the source said.
Regarding the extension in deadline given to the private sector for the step, the source said the plan to make all the companies comply with the measure would be implemented in phases.
The first phase will begin from June when companies having 3,000 employees will be made to transfer employees’ salaries through banks.
The second phase will begin from September when companies with 2,000 or more employees will be required to pay their employees through banks.
The third phase will begin from Dec. 1 when companies having 1,000 or more employees will be made to follow the new regulation.
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