Quick Summary
- Saudi law requires salary to be paid within 7 days of the due date
- The Salary Protection System (SPS) monitors all salary payments electronically
- Employers who delay salary face fines, work permit bans and business licence suspension
- If salary is delayed by more than one month you can resign and claim full EOSB
- Never quit in frustration — file an HRSD complaint first and protect your rights
- HRSD can order emergency salary payment in serious cases
What Does Saudi Law Say About Salary Payment?
Saudi Labour Law is very clear on salary payment. Under Article 90, salaries must be paid at least once per month for monthly-paid workers. The salary must be paid within the first 7 days after it becomes due.
This means if your salary is due on the 1st of each month, your employer must pay it no later than the 7th. Anything beyond this is a violation of Saudi Labour Law and triggers penalties through the Salary Protection System.
What Is the Salary Protection System (SPS)?
The Salary Protection System — known as SPS or Nitaqat in Arabic — is an electronic monitoring system operated by the Ministry of Human Resources and Social Development (HRSD). It tracks salary payments for all companies in Saudi Arabia in real time.
When a company pays salaries, the payment data is automatically reported through the banking system to HRSD. If a company fails to pay salaries on time, the SPS flags it as a violation automatically — without any complaint needed from the employee.
Work Permit Ban
Company cannot issue new work permits or renew existing ones until salary violations are cleared.
Financial Fines
Companies face significant fines for each month of salary delay beyond the legal deadline.
Iqama Renewal Block
HRSD can block iqama renewals for the company's employees until violations are resolved.
Business Licence Risk
Persistent salary violations can result in suspension of the company's business licence.
Owner Liability
Company owners and directors can be held personally liable for systematic salary non-payment.
Employee Transfer Rights
Employees of companies with salary violations gain the right to transfer sponsorship freely.
How To Check If Your Company Has SPS Violations
You can check your company's SPS compliance status through the HRSD website or through the Qiwa platform. If your employer has existing SPS violations, this gives you additional leverage and rights as an employee.
A company with existing SPS violations means:
- You may already have the right to transfer your sponsorship without employer consent
- HRSD will treat your complaint with higher priority
- The employer faces additional penalties on top of paying your salary
- You have stronger grounds for an Article 81 resignation with full EOSB rights
Your Rights When Salary Is Delayed
| Delay Duration | Your Rights | Recommended Action |
|---|---|---|
| 1–7 days late | Right to formal request | Request in writing from HR |
| 8–30 days late | Right to file HRSD complaint | File complaint at hrsd.gov.sa |
| More than 30 days | Right to resign with full EOSB | File complaint — do not resign yet |
| More than 2 months | Article 81 applies — treated as termination | File urgent complaint at HRSD immediately |
Step-by-Step — What To Do When Salary Is Delayed
Document the Delay
Note the exact date your salary was due and the date it was actually paid — or if it has not been paid yet. Save your payslips, bank statements and any communications about the delay. Screenshot any WhatsApp messages where management promised payment.
Request in Writing from HR
Send a formal email to HR and your manager requesting your salary and stating the number of days it is overdue. This creates a paper trail and gives the employer a chance to pay before escalation. Keep all replies.
File an HRSD Complaint
If no payment after your written request, file a complaint at hrsd.gov.sa. You can also visit the nearest HRSD office in person. Select "Wage Complaint" as the complaint type. Include your contract, payslips and bank statements showing non-payment.
HRSD Contact Employer
HRSD will contact your employer within a few days of receiving your complaint. In serious cases HRSD can order immediate salary payment. Most employers pay quickly once HRSD contacts them — they fear the penalties.
If Employer Still Does Not Pay
If the employer ignores HRSD, the case moves to the Labour Court. The court can order immediate payment plus compensation. The employer also faces escalating penalties through the SPS system including business licence suspension.
Can You Resign Because of Salary Non-Payment?
Yes — and importantly, this resignation is treated as if the employer terminated you. Under Article 81 of Saudi Labour Law, if an employer fails to pay salary, the employee can resign and still receive:
- Full EOSB — calculated as if terminated, not resigned
- All unpaid salary — every delayed month must be paid
- Notice period pay — even though you resigned
- Additional compensation — the Labour Court may award extra compensation
What If the Company Is Going Bankrupt?
If your employer is facing financial difficulties or potential bankruptcy, act immediately:
- File an HRSD complaint for unpaid salary immediately — do not wait
- Employee wages are a priority debt in Saudi insolvency law — you are paid before other creditors
- The Saudi government has a Worker Support Fund that can pay wages in cases of employer insolvency in certain circumstances
- Do not leave Saudi Arabia without resolving your salary claim — it becomes much harder to collect from abroad
Salary in Ramadan — Special Rules
During Ramadan, reduced working hours apply for Muslim workers — but salary must remain the same. Some employers try to reduce salary proportionally to the reduced hours. This is illegal. Full salary must be paid regardless of Ramadan hour reductions.
Frequently Asked Questions
My employer pays salary in cash, not bank transfer. Is this legal?
The SPS system requires salary to be paid through the banking system for it to be properly monitored. Cash payments make it harder to track and prove. Under Saudi Labour Law, salary should be paid through bank transfer. If your employer pays cash, always get a signed payslip as proof of payment.
My employer is delaying salary but says it is a temporary issue. How long should I wait?
Maximum 7 days beyond the due date is the legal limit. After that, you are within your rights to file an HRSD complaint. Being patient with an employer who repeatedly delays salary puts you at risk — each month of delay is a separate violation and your situation worsens the longer you wait.
Can my employer deduct from salary as punishment?
Only in very limited circumstances defined by law — and total deductions cannot exceed 50% of monthly salary. Arbitrary deductions as punishment are illegal. If your employer is making unauthorized deductions, this is also an HRSD complaint matter.
I complained to HRSD but my employer fired me in retaliation. What do I do?
Retaliatory termination after filing a complaint is illegal under Saudi Labour Law. File a second complaint immediately citing retaliatory dismissal. You are entitled to Article 77 compensation plus full EOSB plus all unpaid salary. Document the timeline carefully.
My company has 5 employees and the owner says SPS does not apply to small companies. Is this true?
The SPS system applies to all companies employing workers in Saudi Arabia regardless of size. Small companies are not exempt. If your employer is claiming exemption, this is incorrect and you should file your HRSD complaint regardless.
Employer Not Paying Your Salary?
Salary non-payment is one of the most serious employer violations in Saudi Arabia. Book a consultation to understand your exact rights and the fastest path to getting paid — based on 20 years of real Saudi Arabia experience.