New wage monitoring system to crack down on salary violations

At a glance

• The Ministry of Human Resources and Social Development (MHRSD) has announced stricter enforcement measures to monitor wage payments through its digital payroll compliance platform.
• The MHRSD will flag wage violations such as unreasonable basic salaries, excessive deductions, and unrecorded wages over 90 days.
• Employers will receive reminders for delayed payments, with escalating notices at ten and 15 days, and an inspection triggered after 20 days.
• Employers have ten days to justify delays; employees have three days to respond, after which the system processes the employer’s explanation automatically.
• Companies delaying wages for two months face restricted services; after three months, services are suspended, and employees may transfer without consent.

The MHRSD has announced stricter enforcement measures to monitor wage payments through its digital payroll compliance platform. The new regulations will flag several types of wage-related violations, including unreasonable basic salaries and excessive deductions from workers' pay. 

Employers who set basic wages that are deemed either too low or too high compared to standard benchmarks will receive violation alerts. Under the new system, alerts will be triggered if salary deductions exceed 50% of a worker's wage or if basic wages remain unrecorded for more than 90 days. The platform will also identify cases where employers fail to properly record or disburse wages. 

The ministry has implemented a strict timeline for addressing delayed wage payments. Employers will receive an initial reminder when wages are due, followed by a second notice after ten days and a final warning on day 15. If companies fail to submit their wage protection files within 20 days, the system will automatically request an inspection visit. Employers have been granted a ten-day window to explain delayed salary payments, with employees given three days to respond to these justifications. In cases where employees do not respond, the system will automatically process the employer's explanation. 

The regulations specify severe penalties for prolonged salary delays. Companies failing to pay wages for two months will face restricted access to administrative services, while a three-month delay will result in complete service suspension. Additionally, affected employees will be permitted to change employers without requiring consent from their current employer.