Salary Deduction Rules by Ministry in KSA

The MHRSD set rules to deduct the salary of the worker within the circumstances only. The Ministry of Human Resources and Social Development allowed companies to deduct the salaries but the number should not exceed 40%.

Rules and Regulation of the Salary Deduction

Many private companies are cutting salaries without any violations. However, there are only conditions in which private companies can cut out salaries. They are:

  1. The company or owner, as well as employer, has been at a loss due to the pandemic coronavirus.
  2. The salary should be deducted only during working hours.

Moreover, these companies have no right to cancel or terminate the employment term. As the company is not in profit or benefit from the government subsidy. There are three conditions set in the ministry before a private sector company takes action. However, the employer has given the following rules and regulations they can do.

The employer can send the worker to their home country for paid leave of 6 months with his full rights. Also, the employer can cut the percentage of the salary by 40%. Moreover, the employee can leave if he consists to leave and the employer should let him go on demand. Read also MOI Clarifications on Visiting and Traveling in Saudi Arabia.

On the other hand, the Ministry of Interior has announced some struck rules again that violated the precautionary measure. They mention that for each person of a private company if someone has been violating the precautionary measure, then they will be fined up to 100,000 SAR and a 1-year jail. However, if there is anyone who aims to repeat the same violation then these penalties are double as well as the jail.

All you have to do is set back and stay calm. Don’t visit places and stay in your home. This is the best you can do in order to keep yourself safe from the pandemic and penalties. For more info comment below.

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