The Authorization Letter For 13th Month Pay is a crucial document used in Saudi Arabian business operations when companies provide additional salary payments to their employees as part of their compensation package. While 13th month pay is not mandatory under Saudi Labor Law, when offered, it requires proper authorization and documentation to comply with local banking and financial regulations. This document is typically issued annually or as per company policy, providing formal authorization to banks or financial institutions to process these additional payments. It must include specific details about the payment authorization, recipient information, and comply with the Wage Protection System (WPS) requirements in Saudi Arabia. The letter serves as both a legal record and an operational instrument, ensuring transparent and compliant processing of employee benefits.
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1. Letter Header: Company letterhead, date, reference number, and address details of both the authorizing company and the recipient
2. Subject Line: Clear indication that this is an Authorization Letter for 13th Month Pay
3. Recipient Details: Full name and details of the bank/institution/person being authorized to process the payment
4. Authorization Statement: Clear statement of authorization for the 13th month pay distribution
5. Payment Details: Specific details about the 13th month pay including amount, calculation method, and timing
6. Validity Period: Duration for which the authorization remains valid
7. Authentication: Authorized signatory details, signature, and company stamp
1. Employee List Reference: Used when the authorization covers multiple employees - references an attached list of eligible employees
2. Payment Terms: Include when specific payment terms or conditions need to be specified
3. Confidentiality Statement: Added when sensitive financial information is included
4. Revocation Clause: Include when there's a need to specify conditions under which the authorization can be revoked
1. Employee List: Detailed list of employees covered by the authorization, including their names, employee IDs, and payment amounts
2. Calculation Method: Detailed explanation of how the 13th month pay was calculated
3. Required Documents: List of supporting documents needed for processing the payment
Relevant legal definitions
Clauses
Relevant Industries
Banking & Financial Services
Manufacturing
Retail
Healthcare
Construction
Technology
Education
Hospitality
Professional Services
Telecommunications
Oil & Gas
Transportation & Logistics
Relevant Teams
Human Resources
Finance
Payroll
Legal
Compliance
Executive Management
Administration
Relevant Roles
HR Manager
Payroll Manager
Finance Director
Chief Financial Officer
HR Director
Compensation & Benefits Manager
Financial Controller
HR Administrator
Payroll Administrator
Finance Manager
Company Secretary
Legal Counsel
Managing Director
Chief Executive Officer
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