Wednesday, August 20, 2014

Expat's Salaries up by 25% and Saudi's down by 1%

According to a report published by Al-Eqtisadiah business daily, quoting figures released by the Labor Ministry and the Saudi Arabian Monetary Authority (SAMA), salaries of expatriates has been increased by 25% in the year 2013 and salaries of Saudis is decreased by 1% in the same duration. According to the report, the salary of expatriates is increased by 25% from an average salary of SR 1,341/- in the year 2012 to SR 1,808/- in the year 2013. On the other hand, salaries of Saudis are decreased by 1% from an average salary of SR 4,801/- in 2012 to an average salary of SR 4,748/- in the year 2013. Are you satisfied with the figures quoted by these departments? Please leave a comment below if you want to raise your voice.

Accuracy of Report
I am really doubtful about the accuracy of the figures stated above. What I have been noticing during my stay in KSA is that the salaries of Saudis are increased in a very sharp way but expatriates get almost nothing in front of Saudis. But the figures released by the Labor Ministry and SAMA are telling a different story. Even if the figures are correct, there can be four possible reasons for such sharp incline in the salaries of expatriates.

Possible reasons of Sharp incline in Average Salary of Expatriate Employees
  1. It is very difficult to arrange for visas in Saudi Arabia. Companies try to negotiate with the expatriate employees who are already working with some company. In this way, they have to offer a better package to attract them.
  2. Companies with red category have to offer better salary to their expatriate employee to retain them. Otherwise, they can leave them even without letting them know. I have explained the procedure of “Transfer of Sponsorship if Kafeel is Red” in this article.
  • Saudis are not educated in certain jobs like Finance and IT. Expatriates who are working in such jobs demand better packages.
  • After the implementation of “Nitaqat”, now more and more Saudis are being employed by the organization. Above figures are based on the average salary of Saudis. It does not take into account the new Saudis who have been employed by the private or government sector.

  • Fair Comparison of Saudi and Expatriates Salaries
    Saudis receive more than double the salary received by expats in all job categories. For secretarial jobs their average salary is SR 4,300 against SR 1,640 for expats, sales jobs SR 3,200 against SR 1,200 for expats and assistant engineering jobs SR 4,800 against SR 1,000 for expats. According to the SAMA report, the average salary of employees in the private sector is SR 2,962. However, the ministry’s statistics put it at SR 2,134, a difference of SR 828.

    Source: Arab News


    Follow us in Google+