Document background
The Direct Deposit Authorization Form is a fundamental document required for establishing electronic payment arrangements between employers and employees in Saudi Arabia. This form is essential for compliance with the Saudi Wage Protection System (WPS) and SAMA banking regulations, which mandate electronic salary transfers for most employees. The document becomes necessary when hiring new employees, changing banking information, or transitioning existing employees from cash or check payments to direct deposit. It captures crucial information including employee identification details, bank account information, authorization statements, and terms governing the electronic transfer of funds. The form must comply with both Saudi Labor Law and SAMA regulations, making it a critical document for proper payroll administration and regulatory compliance in the Saudi Arabian business environment.
