Regulatory Alerts2022-05-10
Challenges of the Payroll Management System on the Mudad Platform
The Saudi Central Bank, responding to a Ministry of Human Resources and Social Development letter, addresses technical failures and contractual delays in the Mudad Payroll Management System that hinder wage payments to workers. It mandates strict adherence to Service Level Agreement clauses between financial institutions and the Mudad platform to resolve technical disruptions. The directive ensures enterprises consistently meet their wage payment obligations upon maturity, thereby safeguarding worker entitlements and maintaining system reliability.
1 Abdulaziz T. Alotaibi From: Payment Policy Sent: Tuesday, May 10, 2022 1:09 PM Cc: Payment Policy; Dr. Yazeed Al-Ayy - Aiman I. Binkhamees; Dr. Yazeed Aleissa Subject: Regarding the challenges of the Payroll Management System on the Mudad Platform
To the Esteemed Management, Peace, mercy and blessings of God be upon you,
I am pleased to inform you that the Central Bank has received a letter from the Ministry of Human Resources and Social Development regarding the challenges facing the "Payroll Management" system (Mudad) at the level of agreements with financial institutions, and technical failures affecting the implementation by enterprises under the "Wage Protection Program" on the Mudad platform, and the resulting delay in workers receiving their dues.
To this end, the Central Bank confirms the importance of adhering to the clauses stipulated in the "Service Level Agreement" between the company and the Mudad platform, ensuring that enterprises do not default on paying wages upon their due dates. It also emphasizes the necessary attention to address technical issues according to the signed clauses, thereby ensuring enterprises do not default on wage payments when due.
Accept our regards, W.SAMA.GOV.SA