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