Salary & Wages in Saudi Arabia and its Deducution Rule

Employees work hard in every profession because of Wages (Salary). Expatriates who live in Saudi Arabia leave their home countries and come and work in Saudi because they want to earn good money and salary packages.

Salary & Wages in Saudi Arabia & Deducution Rule

Saudi Goverment Ministry of Labor has made some Rights & Duties regarding Wages as below:

Time of Payment of Wages / Salary

– Salaries & Wages must be paid in Saudi Riyals Only (Country Currency)
– Daily Wage Jobs must be paid atleast Once in a Week
– Monthly Paid Wages must be paid once in a month
– Weekly Wages must be given based on the work done in a week, if work is less than 15 days
– Wages & Salaries through Accredited Banks in Saudi Arabia
Deduction or Delay without Cause

– Any Deductions in Salary or Wages without information of an employee or without justification or Written Consent can be reported to Commission for the Settlement of Labor Disputes to order the employer to return to the employee any wrongfully-deducted amount from his Salary or to pay him his outstanding Salary or Wages.

– If Commission for the Settlement of Labor Disputes finds any unjustifiably deductions then the Employers will be fines twice the amount deducted from the Employees Salary or Wages.

Wages Deductions and Percentage of Deduction

First: No amount shall be deducted from the employee’s wages against private rights without his written consent, except in the following cases:

  • Repayment of loans extended by the employer, provided that such deductions do not exceed 10% of his wage.
  • Social insurance or any other contributions due on the employees as provided for by law.
  • Employee’s contributions to thrift funds or loans due to such funds.
  • Installments of any scheme undertaken by the employer involving home ownership programs or any other privilege.
  • Fines imposed on the employee on account of violations committed, as well as deductions made for damages caused.
  • Any debt collected in implementation of a judicial judgment, provided that the monthly deduction shall not exceed one quarter of the employee’s wage, unless the judgment provides otherwise. First to be collected is alimony, followed by food, clothing and accommodation debts, before other debts.

Second: In all cases, deductions made may not exceed half the employee’s due wage, unless the Commission for the Settlement of Labor Disputes determines that further deductions can be made or that the employee is in need of more than half his wage. In the latter case, the employee may not be given more than three quarters of his wage.

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