Removing the Wage Protection Note
Are you facing a suspension of your establishment's services due to the Wage Protection System? You can now contact "Motaded Limited Company" to remove the wage protection note directly and urgently, and to rectify your establishment's status on the Qiwa and Mudad platforms in record time.
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The Ultimate Guide: Removing the Wage Protection Note and Achieving Full Compliance 2025
In light of the rapid digital transformation witnessed by the Kingdom of Saudi Arabia under Vision 2030, the Wage Protection System (WPS) has become more than just an administrative procedure; it is a fundamental pillar for ensuring employee rights and the stability of establishments. However, many companies face technical and legal challenges represented by the appearance of a "Wage Protection Note," which may hinder the establishment's services at the Ministry of Human Resources and Social Development.
This exclusive article is presented by Motaded Limited Company (Motaded), your strategic partner in business solutions, to provide you with the most detailed guide on how to remove the wage protection note and how to professionally deal with the Mudad system and the Qiwa platform.
1. Understanding the Wage Protection System: Why Does the Note Appear?
Before searching for a solution to the wage protection problem, it is essential to understand what the system is. The Wage Protection Program is a technical system that monitors the disbursement of salaries to all private sector employees, aiming to ensure that the agreed-upon wage is paid on time.
Reasons for the Appearance of the Non-Compliance Note:
- Failure to Upload the Wage Protection File: Delaying the uploading of the Mudad wage protection file past its monthly deadline.
- Low Compliance Percentage: If the wage protection compliance percentage is less than 80%, the note appears immediately.
- Salary Discrepancy: A mismatch between the salary registered in Social Insurance (GOSI) and the salary actually paid in the wage protection txt file.
- Failure to Document Contracts: Neglecting the Mudad contract documentation program leads to data matching errors.
2. Mudad Platform: The Heart of the Payroll System
The Mudad platform is the official interface for managing this process. The system is divided into two main tracks that every establishment owner must distinguish:
Table 1: Difference Between the Payroll Management System and the Compliance System in Mudad
| Comparison Aspect | Payroll Management System | Compliance System |
|---|---|---|
| Primary Goal | Processing and transferring salaries via the bank | Monitoring compliance and justifying violations |
| Target Group | Establishments wishing to automate payroll | All private sector establishments without exception |
| Bank Integration | Requires a direct link with the bank account | Does not require a direct bank link |
| Uploading Files | The wage file in .txt format is uploaded directly | Data is pulled and matched automatically |
3. Steps to Remove the Wage Protection Note (Practical Guide)
If a wage protection note appears on the Qiwa platform, follow these steps that we at Motaded Limited Company implement for our clients:
Step 1: Registration and Login
Begin by registering for Mudad Wage Protection. If you are already registered, log in to Mudad Wage Protection via Nafath or your username.
Step 2: Analyzing the Compliance Percentage
Upon entering the Mudad system, specifically the Mudad Compliance System, a dashboard will appear showing the months with low compliance. Look for "Rejected Records."
Step 3: Justifying the Wage Protection Violation
This is the essential step to unlocking wage protection. The Mudad system justification allows you to state the reasons for the lack of compliance, such as unpaid leave or termination of service.
4. How to Successfully Upload the Wage Protection File
The method of uploading the Mudad wage protection file depends on the accuracy of the data within the file. The file must be in a specific format to be compatible with the Mudad payroll management system.
Wage Protection .txt File Requirements:
- ID or Residency (Iqama) number.
- Bank code (e.g., Alinma Bank wage protection).
- Net salary and breakdown of allowances.
Table 2: Ideal Wages and Payroll System Structure
| Field | Description | Important Notes |
|---|---|---|
| Basic Salary | Salary registered in the contract | Must match data on the Qiwa platform |
| Housing Allowance | Cash value for housing | Affects hourly rate calculation |
| Deductions | Penalties or insurance | Must not exceed the legal limit in the Labor Law |
| Net Salary | Amount transferred to the bank | The primary figure read by the Wage Protection Program |
5. Motaded Company Services in Solving Wage Problems
Motaded Limited Company is the preferred choice because we handle the administrative and technical burden for you. We don't just remove the wage protection note; we build an integrated HR and Payroll System for you.
What Do We Offer You?
- Mudad Platform Payroll Management: We upload the Mudad wage file monthly on your behalf.
- Rectifying Status: Solving accumulated wage protection violation issues.
- Legal Consultation: Explaining the penalties for non-compliance with wage protection and how to avoid them.
- Comprehensive Documentation: Ensuring registration in the Mudad program and documenting 100% of employee contracts.
6. Penalties for Non-Compliance with the Wage Protection System
Negligence in the wages and payroll system can cost the establishment dearly. The Ministry of Human Resources imposes progressive penalties:
- Fine for not uploading the wage protection file: Financial fines for each month of delay.
- Service Suspension: Inability to renew residencies (Iqamas) if the wage protection note persists.
- Penalty for non-compliance: May include preventing the establishment from obtaining new visas.
7. Frequently Asked Questions (FAQ)
Q: How is the wage protection .txt file downloaded?
A: You can obtain the correct format through your bank’s payroll management system or via Mudad platform templates.
Q: What is the Wage Protection Note Removal Letter?
A: It is an official letter addressed to the Labor Office for special cases that cannot be resolved through the Mudad compliance system.
Q: Does wage protection include domestic workers?
A: Currently, the domestic worker wage protection system is being implemented through dedicated channels to ensure the rights of all parties.
8. Golden Tips to Avoid Future Mudad Wage Violations
- Commitment to Deadlines: Upload the wage protection file in the first week of every month.
- Data Update: Ensure salaries in the new Mudad system match GOSI records.
- Use Cloud Systems: Rely on Oracle Payroll or advanced ERP systems linked to the Mudad wage protection system.
- Partner with Experts: Contract with Motaded Limited Company to ensure peace of mind and focus on your business growth.
9. Strategic Conclusion
Removing the wage protection note is a corrective process for an establishment's path toward transparency and compliance with the Saudi Labor Law. Remember that delaying the uploading of wage protection may lead to the disruption of your business interests.
Are you suffering from problems with the Wage Protection System?
Do not hesitate to contact Motaded Limited Company (Motaded) today. We offer you integrated solutions from registering in Mudad to uploading wage protection files and professionally justifying violations.
Contact us now and let us take care of your legal compliance!