SARIE System
Application of the Unified Template for Government Employees' Payroll Sheets
Further to SAMA Circular addressed to all banks No. (381000017647) dated 14/02/1438H regarding the RASD Service Project, which concerns the Application of the Unified Form for Government Employees' Salary Statements.
In light of the inability of most government entities to adhere to the unified model, and given the significant importance of the data contained in this model for assisting the Ministry of Finance in auditing, conducting monthly and yearly comparisons, and supporting several national projects based on this data.
Accordingly, we request that all deposits for all employees of government entities be fed into the RASD Service system starting from the current calendar year 2017G and for the coming months (for all government entities, whether the entity adheres to the unified model or not). Payroll files must follow the format of the unified model as specified in the document (RSD Banks File Specification: V2.7). The field for the ID number of citizens and residents is exempted and should be left blank if unavailable to the bank until a suitable mechanism for providing the ID number is established.
We also request your cooperation with Elm Company to implement the requirements. For any needed assistance, you may contact the following email designated for bank support: (RSD_OPS@elm.sa).
Application of the Unified Form for Government Employees' Salary Statements
This section is currently available only in Arabic, please click here to read the Arabic version.Working Hours for the Saudi Arabian Riyal Interbank Express (SARIE)
With reference to the working hours of the Saudi Arabian Riyal Interbank Express (SARIE), we would like to inform you that as of Sunday 23/3/1437 H corresponding to 3/1/2016 G, the working hours of the SARIE system will be modified according to the attached schedule.
Saudi Arabian Riyal Interbank Express (SARIE) System
SARIE Business Cycle
Starting from 3/1/2016
Event
Starting time
Ending time
Event No.
Cutover
09:00 16:30 1 Same Day value transfers
Clearing
09:00
15:00
2
All types of payments (Single & Bulk)
09:00
16:00
3
Squaring & Positions adjustment
16:00
16:15
4
Cutoff
16:30 5 Forward payments
Open 24 hours
6 Obligation not to Apply Fees or Commissions on the Salaries of State Employees and Student Reward Accounts
Referring to SAMA Circulars No. 018559/BCP/802 dated 29/11/1420H and No. 3430/BCP/63 dated 10/2/1424H regarding the confirmation that banks do not charge service expenses on the accounts of state employees in accordance with the unified agreement to transfer the salaries of their employees through the Saudi Rapid Financial Transfer System (SARIE), and the provisions of paragraphs (4,5,6) of (Article1) of the agreement related to the obligations of banks after charging any commissions or bank expenses on the services provided under this agreement, and benefiting from the services of the Saudi network, and providing an ATM card to customers free of charge, provided that it is renewed at the end of its term without fees.
Therefore, SAMA confirms not to impose fees or commissions (whatever their names) and whatever the balances of the state employees' salary accounts in accordance with the above-mentioned agreement, as well as to treat the students' accounts in which their bonuses are deposited as the accounts of the salaries of state employees in not imposing fees or commissions, regardless of the account balance, as well as confirming your branches to abide by this and report what has been taken within a week from its date.
Money Transfer through SARIE System
Referring to the circular issued by SAMA No. 45774/BCT/758 dated 24/12/1427 H regarding the determination of endowments for the implementation of financial transfers through the "Sarie" system, and where SAMA received complaints regarding the refusal of customers' requests to make financial transfers for the purpose of depositing them on the same day and challenging them with certain endowments determined by the bank.
We would like to emphasize the importance of banks receiving all customer payments in their branches and through their technical systems until (15:30) for transfers whose owners request that the transfer procedure be carried out through the "Sarie" system and deposited in the beneficiary's account on the same day.
To take note and approve and act accordingly, and to distribute a copy of this circular to your Bank's branches, and to report on what has been taken within a week from its date.
Employees' Salaries are Paid for the Month of Ramadan Every Year on the Twentieth of the Month Via the SARIE System
SAMA received the letter of His Excellency the Minister of Finance No. 8/2/7167 dated 6/9/1429 H, referring to Ministerial Circular No.12/28810 dated 15/7/1419 H regarding permitting the disbursement of employees' salaries and entitlements through the Saudi Rapid Financial Transfer System (SARIE) in accordance with the rules and procedures attached to it.
Based on what is stated in paragraph (7/h) of the first article of the unified agreement between government agencies and banks, which stipulates the payment of the salaries of the blessed month of Ramadan of each year on the twentieth of the aforementioned month by transferring them to their accounts through the Saudi system for rapid financial transfers (SARIE).
We hope to direct your specialists to transfer the salaries of the blessed month of Ramadan of the year 1429 H on 20/9/1429 H.
Transferring Dues of Construction Companies through the SARIE System Starting from the New Fiscal Year 1428/1429H
In reference to Council of Ministers Decision No. (23) dated 17/01/1428 H, communicated via the circular from His Highness the President of the Council of Ministers No. 4160 dated 23/01/1428 H regarding addressing the obstacles facing the contracting sector in the Kingdom, which stipulated in paragraph four that the Ministry of Finance should take the necessary measures to disburse contractors' entitlements through the SARIE system.
Accordingly, we inform you that SAMA received a letter from the Ministry of Finance No. 8/3/86833 dated 29/10/1428 H, which included a directive for each bank to open an intermediary account for each project assigned to it. The bank will be responsible for managing that account, and a copy of the agreement made with the contractor should be provided to government entities, specifying the name and account number so that government entities can include the account number on the payment order instead of the contractor's account. The project account must comply with what is required in SARIE system, adhering to the specified number of customer account numbers at each bank to avoid payment returns. Please note that the implementation of this circular will begin on 31/12/2007G.
Obliging Local Banks to Adhere with Agreement for Payroll Issuance for Government Employees through "SARIE" System
This section is currently available only in Arabic, please click here to read the Arabic version.Instructions and Standardised Tables for SARIE-Accredited Government Revenue for the Financial Year 1422H/1423H
This section is currently available only in Arabic, please click here to read the Arabic version.Using SARIE System for Student Stipends
SAMA received the letter of His Excellency the Minister of Finance and National Economy No. 8/2/10493 dated 16/8/1423 H referring to the study carried out by the Ministry with the participation of SAMA and the General Audit Bureau on the occasion of using the Saudi Fast Financial Transfer System (SARIE) to disburse students' bonuses by opening accounts with banks in accordance with the following controls:
- The opening of these accounts must be with the consent of the students and their knowledge of their receipt of their rewards using this method.
- Each student should be free to decide the bank she wishes to open an account with and transfer her bonus to her account with it.
- These accounts are dedicated to depositing and withdrawing bonuses during the study, and ATM cards are issued through the Saudi network for each student free of charge.
- It is sufficient for students to sign the marches with the data indicating that the supply of bonuses has been deposited into each student's account, and this shall be verified by the competent authority in the relevant educational authorities. We would also like to inform you that SAMA has received several complaints from citizens, including the requirement of banks for a certain amount when opening an account for the student, the requirement of a certain age to open the account, as well as the imposition of other conditions.
We hope to urge your specialists to comply with the above-mentioned speech of His Excellency the Minister of Finance and National Economy, as well as to abide by SAMA Circular No. 5082/MAT/55 dated 2/3/1423 H regarding the rules for opening accounts in commercial banks and the general rules for their operation.
Procedures for Cashing Ministerial Paychecks Through SARIE
This section is currently available only in Arabic, please click here to read the Arabic version.Executive Regulations for Disbursing State Employees' Salaries
No: 211000000091 Date(g): 28/8/2000 | Date(h): 28/5/1421 Translated Document
Further to SAMA Circular No. 17693/BCT/896 dated 7/12/1418H regarding the rules for salary transfers through the Saudi Instant Payments System (SARIE) and the implementation procedures.
We would like to inform you that there are some amendments to the rules regarding salary transfers via the (SARIE) system, as well as to the standard agreement with banks for salary transfers through the Saudi Instant Payments System (SARIE). The amendments are as follows:
Introduction:
Based on the Ministry of Finance and National Economy Circular No. 12/1936 dated 16/6/1405H, which outlines the implementing rules for disbursing government employees' salaries through national banks, most government agencies and public institutions have adopted the practice of paying employee salaries via cheques drawn on these banks.
Due to the steady increase in the number of government employees and the substantial burdens associated with issuing salary payments via cheques drawn on national banks such as the significant time and effort required, direct costs of cheque printing, and the congestion experienced by local banks during salary disbursement periods SAMA has developed and adopted the Saudi Instant Payments System (SARIE). This advanced automated system facilitates electronic transfers and payments between banks and customers, making it ideal for transferring employee salaries directly to their accounts at the banks they use. Additionally, the benefits provided by the Saudi Payments Network include easy access to cash, balance inquiries via ATMs, and the ability to obtain goods and services through widespread point-of-sale terminals across the Kingdom. Following consultations with the General Auditing Bureau and SAMA, it has been decided to utilize (SARIE) system for the automated transfer of employee salaries to their accounts at various local banks. This decision aims to streamline the salary disbursement process while maintaining adherence to general rules and documentation procedures to ensure proper salary transfer and verification of receipt by employees.
The following are the rules and executive procedures for transferring salaries via (SARIE) system that must be adhered to. SAMA hopes that the implementation of this method will facilitate the salary disbursement process for government employees, allow employees to benefit from the technical services provided by the Saudi Payments Network, support the banking sector, and enhance both banking awareness and savings habits among employees.
First: Rules for Transferring Employee Salaries via the Saudi Instant Payments System (SARIE).
1- Each government ministry or agency is required to open two current accounts with a local bank operating within the Kingdom as follows: The first account should be titled "Salaries of Employees of (Name of the Entity/City).
The second account should be titled "Other Entitlements of Employees of (Name of the Entity/City).
These accounts are to be used for disbursing salaries and entitlements of their employees, which will be processed by the corresponding bank through the transfer of net salaries and entitlements to the employees' accounts held with the same bank or other local banks.
2- The current bank will continue to be used for disbursing employee salaries via cheques during the implementation of these rules. For entities that are not currently dealing with banks, SAMA will coordinate with the Ministry of Finance and National Economy to either change or appoint a bank.
3- Each employee must specify the bank to which they wish their salary to be transferred and sign a declaration to this effect with the Human Resources Department of their respective entity, according to the attached proposed forms. This declaration serves as acknowledgment that their salary or any other entitlements will be automatically transferred to their account with the specified bank. Employees are free to choose the bank they wish to deal with for transferring their entitlements, and it is not necessary for this bank to be the same as the one used by the government entity.
4- Banks are required to accept the opening of current accounts for employees of government entities and public institutions for the purpose of transferring their salaries to these accounts without imposing a minimum balance requirement. Employees whose salaries are transferred to their current accounts at the bank will have access to all banking services available for current account holders, including the use of the Saudi Payments Network services such as ATMs and point of sale terminals. Banks may send representatives to government entities and public institutions to open current accounts for employees at the entities’ premises and branches, in coordination with the Human Resources Departments.
5- Banks are required to perform the salary transfer process without charging any banking service fees, either from government entities or from employees.
6- Human Resources Departments shall issue notifications to employees who have had deductions made from their salaries, detailing the amounts of the deductions and the reasons for them.
7- The application of this system is not limited to the transfer of employee salaries alone it also includes the transfer of their entitlements. The handling of these salaries and entitlements with the banks should be done by opening the two accounts as specified in paragraph (1).
8- Employees who do not wish to have their salaries and entitlements transferred to current accounts at banks, as well as employees of entities without branches of local banks, will have their salaries and entitlements disbursed in accordance with the Ministry of Finance and National Economy Circular No. 12/1936 dated 16/6/1405H, which outlines the implementing rules for salary disbursement through local banks. Separate payrolls will be issued for these cases. Second: Procedures for Transferring Employee Salaries via SARIE.
1- The government entity shall send the payment orders for its employees' salaries to the Ministry of Finance and National Economy on the 12th of each lunar month. The beneficiary's name on the payment order should be written as follows:
Pay to the order of: Salaries of Employees of [Name of the Entity/City], Account No. [Full Account Number for Salaries or Entitlements] at [Bank Name].
2- The Ministry of Finance and National Economy shall process the payment order in accordance with the current regulatory procedures. The issued cheque shall specify the full name, account number, and bank.
3- The cheque shall be delivered to SAMA for the transfer of its value to the bank where the government entity’s account is held. This process will continue until the automated systems are linked, technical tests are conducted, and procedures are revised at both the Ministry of Finance and National Economy and SAMA, to replace cheques with direct transfers to government entities' accounts at banks.
4- The bank shall credit the amount to the government entity's account and notify the entity accordingly to carry out the necessary accounting entries.
5- All government entities are required to send their employee data to the banks they work with on CDs by the middle of the lunar month. This data must include all employee details such as names, account numbers, bank names, and net salaries due. The data can be transmitted via an automated information exchange line between the government entity and the bank to expedite the process of data delivery and processing. For government entities that do not use computer systems for preparing employee salary data, coordination between these entities and the banks is necessary to determine the method of data transmission. Government entities are allowed to make any necessary changes to the data sent to the bank up to two days before the due date. The bank is responsible for implementing the required changes and notifying the government entity so that the necessary accounting entries can be made. It is preferable to agree on a standardized method for sending employee data to the bank in accordance with SAMA guidelines to minimize the need for data corrections during transmission.
6- Regarding the salaries of employees benefiting from installment services provided by banks, who currently receive their salaries via hand-delivered cheques from the bank, their salaries will be automatically transferred to current accounts opened in their names at the same banks. Banks will be notified of this change in salary disbursement method in accordance with the Circular of the Ministry of Finance and National Economy No.12 /162 dated 2/12/1413H.
7- Payroll transfer statements are prepared automatically by the Human Resources Department and are sent along with their attachments, to the Finance Department for review and recording in accordance with financial regulations. The recording should be based on the approval order for disbursement as follows: From Account No. To: Expenses (relevant items)
To the mentioned individuals
Account No. / Payment Orders (in the name of the Pension Fund or the General Organization for Social Insurance and the Credit Bank for settling their dues).
Account No. / Revenues (amounts that may be added to revenues, such as penalties).
Account No. / Deposits (amounts held in deposits for any reason).
Account No. / Payment Orders (for the net salaries specified in the disbursement approval order).
8- The dealing bank deposits the net salaries due into the employees' current accounts with it, as well as transfers the salaries of employees with accounts in various local banks to be credited to their accounts automatically. All salaries are deposited into employees' accounts at all banks on the 25th of the lunar month. Banks provide their customers with summary notifications by the 5th of each lunar month, confirming the addition of salaries to the employees' accounts with them and with other banks for the previous month. Government entities, after reviewing these notifications, attach them to the payroll statements for the relevant month and prepare them for submission along with their monthly documents to the General Auditing Bureau as per the standard procedure.
9- Employee entitlements that are not recorded in their accounts for any reason and reported by the bank are issued as cheques payable to the beneficiaries. These cheques are drawn on the entity's general account.
10- If the entity discovers an error or determines that an employee is not entitled to their salary or a part of it, which has been transferred to the bank, it must immediately notify the bank to make the necessary correction, and this must be done at least two days before the due date. If the error is discovered by the entity after this deadline, the entity should address it by making the following entry: From Account No. / Advances Under Collection (Employee's Account)
To Account No. / Expenses under exclusions (Relevant Item) The amount should be deducted from the employee's entitlements in the following month or collected in cash to settle the advance.
11- Government entities must ensure that all employees listed in the payroll files sent to the banks are still active. They should establish procedures and controls to prevent the transfer of salaries or other entitlements to employees who are no longer on duty. Monthly payroll statements should be accompanied by declarations from the heads of the main and subsidiary departments affirming the accuracy of the information provided and confirming that all employees listed are still active. These declarations must be approved by the Directors of Human Resources and Accounting, as well as the General Manager of Financial and Administrative Affairs. These individuals will be jointly responsible for any amounts incorrectly transferred or issued without entitlement.
12- The financial administration within government entities and public institutions should retain copies of monthly payroll statements and detailed reports of transactions issued by the banks, as requested. These documents should be kept in dedicated files for reference when needed. Unified Agreement for Transferring Employees' Salaries via the Saudi Arabian Riyal Interbank Express (SARIE) System
On the day of ..../.... / 14....H, corresponding to ..../.... / 199....G, an agreement has been made between:
The First Party:
The Government Entity (________________________) Address at (________________________).
Represented in the signing of this agreement by His Excellency / __________________.
Hereinafter referred to as the "Government Entity."
The Second Party:
The Bank (________________________) Address at (________________________).
Represented in the signing of this agreement by __________________.
Hereinafter referred to as the "Bank."
Introduction:
Based on the Government Entity’s desire to enlist the Bank to provide banking services, particularly the transfer of monthly salaries and other entitlements to its employees through direct deposit into their current accounts. This includes the transfer of monthly salaries and other entitlements to employees with accounts at other local banks through the Saudi Electronic Funds Transfer System (SARIE) instead of disbursing salaries through cheques, in accordance with the general rules and executive procedures for the payment of state employees' salaries via SARIE as issued under Circular No. ___________ from His Excellency the Minister of Finance dated ..../..../ 1419H. This agreement is supplementary to the implementing rules for paying state employees' salaries through local banks issued by the Minister of Finance and National Economy under Decision No. 11/H/1351 dated 16/5/1405H, circulated under No. 12/1936 dated 16/6/1405H and subsequent clarifications and additions. Furthermore, based on SAMA's approval to enter into an agreement with the Second Party to facilitate salary disbursement as outlined in Letter No. ___________ dated ..../.... /14....H, this agreement has been made between the two parties.
Article 1: Bank Obligations
1- The bank shall open two current accounts in the name of the Government Entity in accordance with the rules and regulations for opening current accounts for ministries, governmental entities, and public institutions as issued by SAMA. One account is for salary transfers, and the other is for other employee entitlements such as overtime and delegation allowances, which are paid collectively (by one check).
2- The bank shall provide the Government Entity with detailed automated reports regarding account activity via terminal screens, floppy disks, or another method that serves reconciliation purposes with their records. This should be done at least once a month or upon request.
3- The bank shall transfer the employees’ monthly salaries to their current accounts opened with the bank or with other local banks based on the data provided by the Government Entity.
4- The bank shall not charge any commissions or banking fees for the services provided under this agreement to the Government Entity or its employees. Employees are not required to maintain a minimum account balance (SAMA Circular No. M/A/142 dated 18/2/1417H).
5- Current accounts opened for employees under this agreement shall enjoy all the benefits available to other current accounts at the bank, including the use of Saudi ATM networks and point-of-sale services.
6- The bank shall issue an ATM card to every employee with a current account at the bank free of charge, and it shall be renewed upon expiration without charge. In the event of card loss or damage, the bank shall issue a replacement card.
7- The bank shall credit the employees’ salaries to their accounts on the 25th day of the Hijri month unless the following exceptions occur: A) If the 25th day falls on a Friday, the crediting will take place on the 26th day.
B) For the last month of the fiscal year, salaries will be paid in accordance with the instructions issued by the Ministry of Finance and National Economy for closing accounts at the end of the fiscal year.
C) The salary for the month of Ramadan will be paid on the 20th day of Ramadan.
8- The bank shall provide the Government Entity with the names and entitlements of employees whose salaries were not credited to their accounts for any reason, whether at the bank or other banks, no later than two days after the due date. The Government Entity shall then issue checks for the total salary amount to the beneficiaries.
9- The bank shall provide the following information to the Government Entity no later than five days after the salary transfer date: - Confirmation of the amounts credited to the opened accounts and any amounts not credited for any reason.
- Confirmation of the total amounts transferred for employees with other banks and any returned amounts.
10- The bank shall provide necessary support to rectify any errors in the data sent by the Government Entity upon notification. Article 2: Government Entity Obligations
1) The Government Entity shall provide the bank with detailed employee salary data, including the names of employees and their complete account numbers, through terminals, floppy disks, or other methods deemed suitable by both parties. The Government Entity is responsible for the accuracy of this data.
2) The Government Entity shall deposit the total amount of monthly salaries in its current account with the bank no later than the 20th of the month, ensuring sufficient funds to cover the monthly payroll. The Government Entity will also deposit any additional amounts required for other entitlements it wishes to transfer to its employees.
3) The Government Entity shall not approve the transfer of an employee's salary from one bank to another or cancel the transfer and replace it with a check if it had previously committed to another bank for the transfer.
4) The Government Entity shall transfer the salaries of employees benefiting from loan services provided by the bank to current accounts in their names at the same bank. Article 3: General Provisions
1) This agreement shall be valid for two years and will be automatically renewed for the same period unless either party notifies the other party at least four months before the end of the current term of its desire not to renew.
2) Upon signing this agreement, the bank shall coordinate with the Government Entity to complete all procedures necessary for implementing the agreement.
3) This agreement is governed by the laws and regulations currently in force in the Kingdom of Saudi Arabia.
4) In the event that either party breaches any of the obligations stated in this agreement, the other party has the right to terminate the agreement without compensation, provided that two written warnings are issued, and two months pass for each warning without corrective action.
5) In matters not covered by this agreement, reference shall be made to the general rules and executive procedures for salary transfers via SARIE issued under Circular No. 28810/12 dated 15/7/1419H by the Minister of Finance and National Economy.
6) In case of any dispute regarding the implementation of this agreement, SAMA shall have the authority to settle it.
7) This agreement is made in three original copies, one for SAMA, one for the Government Entity, and one for the bank, all to be executed accordingly.
The First Party The Second Party
On behalf of (The Government Entity) On behalf of (The Bank)
Signature: Signature:
- Confirmation of the amounts credited to the opened accounts and any amounts not credited for any reason.
Implementation Rules For Transferring Salaries for Government Employees SARIE
Referring to the circular of His Excellency the Minister of Finance and National Economy No. 28810/12/79 dated 15/7/1419H, which approved the application of the Saudi Payments Network (SARIE) system for the disbursement of salaries to government employees, and referring to SAMA’s Circular No. 17693/M AQ/896 dated 7/12/1418H, which communicated the implementing rules to be followed for the disbursement of government employees’ salaries through the SARIE system. The unified agreement, which must be used in contracts between the bank and the government entity, states that the agreement must be based on SAMA’s approval of the agreement between the two parties. The agreement must also include the reference number and date of SAMA’s approval letter for any government entity to deal with a bank. Based on the explanatory and supplementary circulars regarding the opening of accounts for government entities including Circular No. M A/183 dated 2/7/1405H, Circular No. M A/247 dated 29/6/1411H, and Circular No. M A/633 dated 21/10/1415H, SAMA has recently observed some banks entering into agreements to disburse salaries to government employees through the SARIE system directly without obtaining SAMA’s approval. SAMA has the authority to select the bank with which the government entity should deal to ensure fairness in distribution among banks. It has also been noted that some government entities may already be dealing with another bank for the same purpose, which constitutes a violation of the aforementioned circular from His Excellency the Minister of Finance and National Economy. Additionally, this situation may cause embarrassment for the Ministry and SAMA due to some banks entering into such agreements or the existence of various government accounts with different purposes opened with some banks without SAMA’s approval. In some cases, multiple accounts have been opened for the same entity despite only one account being approved.
Such actions violate the instructions that prohibit opening accounts for any government entity without obtaining SAMA’s approval, as SAMA holds the authority to approve such actions and limit approval to only one account. Violating these procedures exposes the bank to legal accountability and full responsibility for any consequences resulting from non-compliance with the instructions.
SAMA requests that all relevant personnel across your branches in different regions of the Kingdom be informed and instructed to strictly adhere to the guidelines issued by SAMA. Banks are reminded not to open accounts for any government entity unless SAMA has granted approval.
For accounts that were opened without obtaining SAMA's approval, the situation must be rectified by notifying the concerned government entities to contact their parent organization through the Ministry of Finance and National Economy, specifically addressing the Deputy Minister for Financial Affairs and Accounts, to obtain approval for these accounts. SAMA must then be notified to provide the bank with the necessary approval for the existence of these accounts.
The General Rules, Implementation Procedures and the Standard Agreement for Transferring Salaries of Employees by SARIE
No: 181000000896 Date(g): 3/4/1998 | Date(h): 7/12/1418 Status: Modified These rules have been updated in accordance with the rules for transferring salaries of government employees as per SAMA circular No. (211000000091), dated 28/05/1421H, to read the updated rules, click here.According to a letter received by SAMA from HE the Minister of Finance & National Economy No. 12/2502 dated 24/10/1418 H, the Ministry is developing the procedures of paying the salaries of government employees through SARIE. HE's letter included the implementation procedures which must be applied to this operation on a trial basis for 2 months starting 1-1-1419 H. Please be informed and notify your branches accordingly.
Attached please find a copy of the general rules and implementation procedures, along with the standard agreement proposed to be concluded with the bank with which the government agency deals. Please take note that the salary check shall be delivered C/o SAMA.
We take this opportunity to emphasize the role of banks in the success of this service and the need to extend support to all government agencies to enable them to transfer the salaries of their employees through SARIE.
The Standard Agreement for Transferring Salaries of Employees by SARIE
On____/___/14___H. (corresponding to ___/____/199__
A. D.) this Agreement was concluded by and between:
(Government Agency), address () represented in signing the Agreement by HE______________ (hereinafter referred to as “ Government Agency”) First Party and (Bank), address () represented in signing this Agreement by __________(hereinafter referred to as "Bank”) Second Party.
and
(Bank), address () represented in signing this Agreement by ______________(hereinafter referred to as "Bank") Second Party.
Introduction
In the desire of the Government Agency to have the Bank extend thereto a banking service in the form of transferring the monthly salaries and other benefits of its employees by direct deposit in their current accounts with the Bank, and to transfer the monthly salaries and other benefits of its employees who have a current account with some other banks by SARIE, instead of disbursement by checks, in accordance with general implementation rules and procedures to transfer civil servants salaries by SARIE, issued by the circular of HE the Minister of Finance No.________dated__/__/1419 H; and
Further to implementation rules for the payment of civil servants salaries through local banks, issued by the decision of HE the Minister of Finance and National Economy No. 11/H/1351 dated 16-5-1405 and circulated under No. 12/1936, dated 16-6-1405, along with explanatory and supplementary circulars; and
Pursuant to SAMA's consent to conclude an agreement with Second Party to pay salaries as per its letter No.______dated ___/___/14___H. (reference must be made to SAMA's letter of agreement to start dealing with a specified bank), the two parties agreed as follows:
Article (1): Obligations of Banks
The Bank must open 2 separate current accounts in the name of the Government Agency, in accordance with applicable rules and conditions for opening current accounts for ministries, government authorities and public institutions issued by SAMA.
One account shall be used for transferring the salaries of employees and the second for transferring their other collective benefits other than salaries, such as overtime compensation, outside assignments and others that are paid collectively (in one check).
- The Bank must provide the Government Agency, at least once a month or upon request, with statements on the account movements through terminals or floppy diskettes or any other method which serves the purpose of conformation with its own records.
- The Bank has to transfer the monthly salaries of employees to their current account with the Bank or with other local banks, in accordance with a statement submitted by the Government Agency.
- The Bank shall not charge the Government Agency or the employees any commissions or banking expenses for this service according to this Agreement and shall not commit the employees to a minimum balance in their accounts (SAMA circular No. BCL/142 dated 18-2-1417 H).
- Current accounts opened for employees under this Agreement should enjoy all the advantages of other Saudi banking services, such as ATM and Points of Sale.
- The Bank should provide each holder of an account with the Bank an ATM card free of charge, renewable free of charge and replaced if lost or damaged.
- Salaries shall be credited to the account of the employee on the 25th of the Hejira month, except:
a) If the 25th day falls on a Friday, salaries will then be credited on the 26th day..
b) In the last month of the fiscal year, salaries shall be paid in accordance with the closing of accounts instructions for that fiscal year issued by the Ministry of Finance and National Economy at the end of each fiscal year.
c) The salaries for Holy Ramadan of each year shall be paid on the start of the 20th day of that month.
- The Bank should provide the Government Agency with the names and benefits of employees, whose benefits were not credited for any reason to their account with the Bank or with other banks, within 2 days at the latest from maturity date. The Government agency shall issue checks drawn on the collective account for salaries in the amount of the benefits to the order of beneficiaries.
The Bank shall provide the Government Agency, within 5 days at the latest, from the date of transfer, with the following:
*Evidence of crediting the deposited amounts to the current accounts opened therewith and the non-credited amounts for any reason.
*Evidence of transferring the total amounts belonging to employees at other banks and amounts returned thereof.
- The Bank must, upon notification, provide necessary support for the correction of any error that may appear in statements sent by the Government Agency.
Article (2): Obligations of The Government Agency.
- The Government Agency must provide the Bank, through terminals, floppy diskettes or any other method seen suitable by the two parties, with detailed statements showing the monthly benefits of employees whose salaries have been transferred, and full account numbers, on which basis the transfer of amounts to current accounts with the Bank or with other banks shall take place, and the Government Agency shall be responsible for the accuracy of such statements.
- The Government Agency shall, on the 20th of the same month at the latest, deposit the value of the monthly salaries of its employees in the current account opened in its name with the Bank in sufficient amounts to cover the monthly salaries and shall also deposit any amount to cover other benefits which it desires to transfer to its employees.
- The Government Agency should not approve the changing by the employee of his salary transfer from one bank to the other or the replacing of the transfer with payment by a check delivered to the employee, if the Government Agency had already been committed to a certain bank to pay the salary of an employee by transfer or a check c/o that bank.
- The Government Agency must transfer the salaries of employees benefiting from the banks installment services to current accounts in their names with the same banks.
Article (3): General Provisions
- This Agreement is for 2 years, renewable for an equal period unless one Party notifies the other at least 4 months in advance of its desire not to renew it.
- Upon signing this Agreement, the Bank shall coordinate with the Government Agency to complete all necessary procedures to enforce it.
- This Agreement shall be governed by Saudi Laws and Regulations in effect.
- In the event of default by one Party on any of its obligations hereunder the other Party shall have the right to terminate this Agreement, after giving the defaulting party two written notices and the default is not remedied within 2 months from the date of each notice.
- Anything not mentioned herein shall be governed by general implementation rules and procedures connected with the transfer of employees salaries by SARIE issued by HE the Minister of Finance and National Economy No. ____dated___/___/_____. \
- Any dispute hereunder shall be settled by SAMA
- This Agreement was executed in 3 original copies, with SAMA. The Government Agency and the Bank each receiving one copy to act accordingly.
For First Party For Second Party
(Government Agency) (Bank)
Signature Signature
Implementation Rules And Procedures for Transferring Civil Servants Salaries by SARIE
Introduction
Pursuant to the Ministry of Finance and National Economy circular No. 12/1936 dated 16-6-1405 H, which included implementation rules for the payment of civil servants salaries through national banks, most Government Agencies and public institutions have followed this method of paying the salaries of their employees by checks drawn on these banks.
In view of the constant increase in the number of civil servants and the huge burdens carried by national banks, as a result, and the time and efforts involved in the direct cost of printing checks and the rush suffered by the banks during the salary payment period; and
In the light of SAMA's development and approval of the SARIE system, which is a developed procedure that facilitates the process of making financial transfers and payments between the banks and their clients electronically, and is considered ideal for transferring the salaries of employees to their accounts at the banks they deal with, in addition to other advantages provided by the Saudi Payment Network (SPAN), as regards the facility of obtaining cash and information about their balances through ATM and the buying of goods and services through Points of Sale spread throughout the Kingdom; and
After studying the subject by the Bureau of General Audit and SAMA, it was decided to use the SARIE system for transferring the salaries of employees to their accounts with various local banks, with no prejudice to general rules and the documentary payment cycle which aims at controlling the salary transfer process and verifying the receipt of the salaries by the employees.
Herebelow are the rules of transferring salaries by SARIE and the procedures to be followed. The Ministry hopes that the application of this system will facilitate the process of paying the salaries of employees, help the employee in making good use of the technological services rendered by the Saudi Payment Services Network, supporting the banking sector at the same time and promoting banking and saving awareness of the employees.
I.Rules for Transferring Employees Salaries by SARIE:
Each ministry or government authority must open two current accounts with one of the Saudi local banks as follows:
First account in the name of employees salaries of (name of government agency / city)
Second account in the name of other benefits of the employees of ___________(name of government agency / city), to be used for paying the salaries and other benefits of its employees, which are paid through the bank they deal with by transferring the net salaries and benefits of the employees to their accounts with the same bank or with other local banks.
- Dealing with bank through which the salaries of employees are presently paid by check shall continue when these rules are applied. The bank shall be changed or designated, in case of government agencies not presently dealing with any bank, by SAMA after coordinating with the Ministry of Finance and National Economy.
- Each employee shall name the bank through which he desires to have his salary transferred to his account therewith by signing a statement to this effect at the Personnel Department of the government agency he works for as per attached form. This statement amounts to an acknowledgement that his salary and other benefits shall be automatically transferred to his account with that bank (the employee has the full liberty to choose the bank he wishes to deal with and transfer his benefits thereto, and it does not have necessarily to be the same bank with which the government agency deals).
- Banks have to accept the opening of current accounts for the employees of government agencies for the transfer of their salaries thereto, without requiring a minimum balance in these accounts. The employee whose salary is transferred to his current account at a bank shall enjoy all the banking services available to the holders of other current accounts, such as ATM and Points of Sale offered by the Saudi Payment Network. Representatives of the various banks may be sent to the Government Agencies and public institutions at their head offices and branches for opening current accounts for their employees in coordination with the Personnel Department.
- Banks have to effect the transfer of salaries free of charge for government agencies and employees.
- The Personnel Department shall prepare notices to employees whose salaries have been subject to deductions, indicating the amounts of deduction and the reasons therefor.
- The system shall not be limited to the transfer of employees salaries but shall include the transfer of all benefits. The transfer process is done through separate current accounts opened with the banks as mentioned in paragraph (1).
- The salaries and benefits of employees who do not desire to have their salaries and benefits transferred to a bank current account, as well as the employees of government agencies that have no branch of the local banks, shall be paid in accordance with the circular of the Ministry of Finance and National Economy No. 1936/12 dated 16-6-1405, which included the implementation rules for paying the salaries of employees as per a separate payroll.
II.Procedures of Salary Transfer by SARIE
1.The government agency shall prepare payment orders of salaries and send them to the Ministry of Finance and National Economy on the 12th day of the Hajira month. The name of the beneficiary in the payment order shall be written as follows:
Pay to the order of: employees salaries (….. name of the government agency/city) account No. ….. (account number for salaries or benefits in full) with …… (name of the bank)
2. The Ministry of Finance and National Economy shall treat payment orders in accordance with presently practiced procedures and the issued check shall state the full name and number of the account and the bank.
3. The check shall be delivered to SAMA to transfer its value to the bank in which the account of the government agency is opened. This process shall continue until electronic systems are connected, the tests are made, and the procedures are amended by the Ministry of Finance and National Economy and SAMA and the transfers are made directly, instead of checks, to the benefit of the government agency with the bank.
4. The bank shall enter the amount in the account of the government agency, which shall be notified accordingly to effect its own entries.
5. All government agencies shall send their employees data to the banks on diskette in the middle of the Hejira month. The diskette must contain the details of all employees data, such as the name of the employee, his account No., the name of the bank, the net salary and benefits. Such data may be sent through an electronic transmission line between the government agency and the bank to expedite the arrival and processing of the data by the bank.
6. With regard to government agencies that do not use the computer in preparing the data and payrolls of their employees, they should coordinate with the banks about the method of sending such data. The government agency may amend the data sent to the bank 2 days before the maturity dale. The bank shall make the required amendments and notify the government agency accordingly to make the necessary accounting entries. It is preferable to have a standard method for transmitting the data of employees, as per SAMA instructions, to avoid amendments during the transmission process..
7. Regarding the salary of employees benefiting from the installment services of banks and whose salaries are now paid by checks c/o such banks, their salaries shall be transferred electronically to current accounts in their own name opened with the same banks, provided they notify the bank about the change in the method of paying their salaries, as per the Ministry of Finance and National Economy circular No. 12/162 dated 2-12-1413 H.
8. Payrolls of salary transfer shall be prepared electronically in the Personnel Department, and sent, with attachments, to the Financial Department to be reviewed and recorded, as per financial instructions on the basis of the payment order as follows: From expense account (relevant items)
To:
Payment orders account (in the name of the Retirement Salaries Authority or GOSI or Credit Bank to pay their benefits)
Revenues account (amounts that may be added to revenues such as penalties)
Imprest account (amounts that may involve imprests for any reason)
Payment orders account (net value of salaries as per payment order)
9. The bank shall deposit the net due salaries in the current accounts of employees therewith and transfer the salaries of employees who have their accounts with other banks to be electronically added to their accounts, so as to have all the salaries of employees transferred electronically and credited to the accounts of employees with all banks by the 25th day of the Hejira month. The banks shall, by the 5th day of the Hejira month, provide their client government agency with notices, indicating that the salaries of their employees for the previous month have been credited to their accounts therewith and with other banks. The government agencies shall, after reviewing the notices and attaching the payrolls of the relevant month, send same to the Bureau of General Audit within their monthly documentation.
10. The benefits of employees that are not credited for any reason and notified by the bank shall be paid to beneficiaries by check drawn on the gross account of the government agency.
11. If the government agency discovers any error in calculating the salary and benefits of the employee transmitted to the bank, it should notify the bank immediately 2 days before maturity date. If the error is discovered by the government agency after this deadline, it shall treat it as follows:
From :Imprest under collection from
employee account
To :Reimbursed expenses account.
Deduction from the employee benefits shall be made in the following month or the amount shall be collected from him in cash and reimbursed to the imprest account.
12. Government agencies shall make sure that all employees listed in the tables sent to the bank are still on the job, and adopt procedures and controls to cut down on the transfer of salaries and benefits of employees that are no longer on the job. The monthly payrolls must be accompanied by attestations from the officials of the main and branch departments certifying that the data in the payrolls is accurate and that all those listed therein are still on the job. Such attestations should be approved by the Director of Personnel and Accounts and the Director General of Financial and Administrative Affairs, who shall be jointly responsible for any funds transferred by error or without entitlement.
13. The Financial Department of government agencies and public institutions must keep a copy of monthly payrolls and detailed reports on executed operations issued by the banks, kept in special files for reference, if and when needed.
SAMA/Banking Technology
Form for Transferring Salary to Al-Rajhi Banking Investment Corporation
Dated: __/_/
HE The Director of Personnel
Greetings,
I wish to inform you that this form was signed by me in the desire to transfer my salary and other financial entitlements to my account with Al-Rajhi Investment Corp.,__________branch in (city) as per account number set forth below.
A/c Number Currency and A/c Code Branch Code 6 0 8 0 1 (please fill out all blanks and contact the bank for any inquiry)
As of the salary and entitlements for the
(month) year
Regards,
Name File No. ID No Department/Section Phone No. Signature SAMA/ Banking Technology
Form For Transferring Salary To The Saudi Hollandi Bank
Date:___/___/___
HE The Manager of Personnel
Greetings,
I wish to inform you that this form was signed by me in the desire to transfer my salary and other financial entitlements to my account with the Saudi Hollandi Bank as per details below (please fill out all blanks and contact the Bank for any inquiry).
Serial No. A/c No. Branch Code As of the salary and entitlements for the month of
() year
Regards,
Name ID No Department/Section Phone No. Signature SAMA/Banking Technology
Form For Transferring Salary To The Saudi British Bank
Date://
HE The Manager of Personnel
Greetings,
I wish to inform you that this form was signed by me in the desire to transfer my salary and other financial entitlements to my account with the Saudi British Bank as per details below (please fill out all blanks and contact the Bank for any inquiry).
Type of A/c Control
Signal Code
Client A/c Code Branch Code As of the salary and entitlements for the month of
() year
Regards,
Name ID No Department/Section Phone No. Signature SAMA/Banking Technology
Form for Transferring Salary to The Saudi American Bank
Date:___/___ /
HE The Manager of Personnel
Greetings,
I wish to inform you that this form was signed by me in the desire to transfer my salary and other financial entitlements to my account with the Saudi American Bank as per details below (please fill out all blanks and contact the Bank for any inquiry).
As of the salary and entitlements for the month of () year_______
Regards,
Name ID No Department/Section Phone No. Signature SAMA/Banking Technology
Form for Transferring Salary to The Riyad Bank
Date://
HE The Manager of Personnel
Greetings,
I wish to inform you that this form was signed by me in the desire to transfer my salary and other financial entitlements to my account with the Riyad Bank as per details below (please fill out all blanks and contact the Bank for any inquiry).
Type of A/c Currency Code A/c No. Branch Code As of the salary and entitlements for the month of
() year
Regards,
Name ID No Department/Section Phone No. Signature SAMA/Banking Technology
Form For Transferring Salary To The Arab National Bank
Date: __/__/__
HE The Manager of Personnel
Greetings,
I wish to inform you that this form was signed by me in the desire to transfer my salary and other financial entitlements to my account with the Arab National Bank as per details below (please fill out all blanks and contact the Bank for any inquiry).
Branch Client A/c No. Ledger Code. Currency Code. As of the salary and entitlements for the month of () year______
Regards,
Name ID No Department/Section Phone No. Signature SAMA/Banking Technology
Form for Transferring Salary to The Saudi French Bank
Date: __/__/
HE The Manager of Personnel
Greetings,
I wish to inform you that this form was signed by me in the desire to transfer my salary and other financial entitlements to my account with the Saudi French Bank as per details below (please fill out all blanks and contact the Bank for any inquiry).
Control sign Serial No. of A/c Basic code for A/c No. As of the salary and entitlements for the month of () year______
Regards,
Name ID No Department/Section Phone No. Signature SAMA/Banking Technology
Form for Transferring Salary to The Saudi Investment Bank
Date:/__/___
HE The Manager of Personnel
Greetings,
I wish to inform you that this form was signed by me in the desire to transfer my salary and other financial entitlements to my account with the Saudi Investment Bank as per details below (please fill out all blanks and contact the Bank for any inquiry).
As of the salary and entitlements for the month of () year______
Regards,
Name ID No Department/Section Phone No. Signature SAMA/Banking Technology
Form For Transferring Salary To The National Commercial Bank
Date: __/__/__
HE The Manager of Personnel
Greetings,
I wish to inform you that this form was signed by me in the desire to transfer my salary and other financial entitlements to my account with the National Commercial Bank as per details below (please fill out all blanks and contact the Bank for any inquiry).
Supplement Code A/c No. Type of A/c Client A/c No. Branch Code As of the salary and entitlements for the month of () year_______
Regards,
Name ID No Department/Section Phone No. Signature SAMA/Banking Technology
Form for Transferring Salary to The United Saudi Commercial Bank
Date://
HE The Manager of Personnel
Greetings,
1 wish to inform you that this form was signed by me in the desire to transfer my salary and other financial entitlements to my account with the United Saudi Commercial Bank as per details below (please fill out all blanks and contact the Bank for any inquiry).
Signal Scale Serial No. A/c No. Type of A/c Currency Code Branch Code As of the salary and entitlements for the month of () year_______
Regards,
Name ID No Department/Section Phone No. Signature SAMA/Banking Technology
Form for Transferring Salary to The Al Jazira Bank
Date:___/__/___
HE The Manager of Personnel
Greetings,
I wish to inform you that this form was signed by me in the desire to transfer my salary and other financial entitlements to my account with the Al Jazira Bank as per details below (please fill out all blanks and contact the Bank for any inquiry).
Supplement Code Client A/c No Branch Code As of the salary and entitlements for the month of () year______
Regards,
Name ID No Department/Section Phone No. Signature SAMA/Banking Technology
Form for Transfer of Salary to A Bank
Date: __/__/__
HE The Director of Personnel
Greetings,
I wish to inform you that this form was signed by me in the desire to have my salary and other entitlements transferred directly to my account with the Bank as per details set forth below.
Bank A/c No. As of the salary and entitlements for the month of () year______
Regards,
Name ID No Department/Section Job Title Phone No. Signature Using Checks to Disburse Government Employees' Salaries Through Local Banks
Reference to our circular No. BC/183 dated 3-7-1405H (23-3-1985 G) regarding the use of checks in paying the salaries of civil servants through local banks; and
In view of the difficulties faced by banks in safe keeping such checks after cashing them and the need for a large space for this purpose due to its large number; and
Whereas currently applicable instructions adequately guarantee the paying of government employees salaries to them in person and the refunding of unpaid amounts to the government agency, through SAMA; and
Since the return of cashed checks to the concerned government agency will move the problem that is now faced by banks to the government agency,
The matter was referred to HE the Minister of Finance & National Economy, who agreed in his letter No. 12-3411 dated 16-5-1411 H that banks may, after 2 years of cashing civil servants salaries, copy such checks on a microfilm to be easily accessible if and when needed, provided the signature of the civil servant appears in the inputs of the microfilm. Thereafter the checks may be destroyed to solve the problem of safekeeping.
Please be informed, taking into account the provision of article (13) of our above-mentioned circular (BC/183).
Supplementary Circular - Disbursement of Government Employees' Salaries Through Banks by Checks
Reference to our circular No. BC/183 dated 3-7-1405 H regarding payment of civil servants salaries by checks, SAMA has received a letter from HE the Minister of Finance and National Economy, noting that some government agencies have reached agreement with some Saudi banks, under which salary checks could be cashed by simply providing such banks with the payroll of such government agencies and having the payee sign on such payroll.
Since this procedure is in violation of the Implementation Rules stated in HE's circular No.11/H/1351 dated 16-6-1405 H, which was communicated to you in the above-mentioned circular, we hope you comply with such rules with no amendments. The Ministry will not approve payment orders to violating banks.
Using Checks to Disburse Government Employees' Salaries Through Local Banks
In the letter of HE the Minister of Finance and National Economy No. 206-405 dated 15-1-1405 H, regarding the use of checks for paying civil servants salaries through local banks, HE requested us to notify the banks as follows :
- Starting with the budget of the coming fiscal year 1405/1406 government agencies may open accounts with local banks for the payment of their employees' salaries by check. Such an account shall be used solely for this purpose.
- The opening of such an account shall be limited to Ministries and independent government agencies listed in the attached list and their affiliated branches in the Kingdom. Only one account may be opened by the agency or its branch.
- The account shall be opened in the name of the agency or branch, not in the name of a specific employee (s).
- The bank in which the account is to be opened shall be specified by SAMA at the request of the concerned agency.
- Banks undertake to cash salaries with no service charges.
- Checks are valid for one month from the date of issuance and are endorsable only to banks.
- The concerned agency shall feed its current account, when opened, with a net average of its monthly payroll, plus 50%, by a check issued by the Ministry of Finance and National Economy.
- The bank shall provide the concerned agency, at the end of the 10th day of each month, with a statement indicating the number and amounts of cashed checks. After reviewing such statements, the bank shall be reimbursed for cashed amounts. With regard to the statement of the payment of salaries for Jumada I of each year, the banks shall be reimbursed in the middle of Jumada II.
- The banks shall not be reimbursed for statements of account evidencing salary payments for the month of Jumada II of each year. Banks have to transfer any surplus balance in the current account to the current account of the Ministry of Finance and National Economy with SAMA before the end of Rajab each year. The bank shall send the statement of accounts evidencing the payment of salaries for the month of Jumada II, along with SAMA's notice evidencing the transfer of the agency balance therewith.
- The agency shall obtain check books through a letter addressed by the authorized person to the bank.
- The authorized person, who shall not hold a title less than director general, will provide the bank with signature samples of the persons authorized to sign the checks.
- With regard to government agency branches, the agency with which the branch is affiliated shall make the necessary arrangements for opening the branch account at the selected bank. This account shall be fed with a net average of employees salaries for 2 months. The branch director shall provide the bank with the name of persons authorized to sign the checks and their signature samples. The agency with which the branch is affiliated shall reimburse the bank gradually for paid salaries to maintain sufficient cash liquidity.
- The Ministry of Finance & National Economy, the General Audit Bureau or SAMA may send representatives to check on these statements of account or to ask for copies thereof.
We wish to emphasize that no direct accounts may be opened for this purpose except through SAMA.