Thursday, September 29, 2016

11 days salary cut down for all government employees from Oct 01, 2016

Saudi government has made many changes in the pay structure of government employees this year which will take effect from the beginning of the Hijri year 1438. Custodian of two holy mosques in Saudi Arabia issued several royal decrees earlier in the week to address many changes in pay structure. You can read about them in detail in the below link. Currently, all government employees have been receiving salaries based upon Hijri calendar and in private sector, employees have been paid according to Gregorian calendar. In order to remove this inconsistency, Saudi government has decided to move to Gregorian calendar for the purpose of paying salaries. Recommended: King Salman cuts down salaries of all Govt. employees by up to 20%

In other words, from now onwards, all government employees will be paid according to Gregorian calendar. It is important to mention here that, on average a hijri year is of 354 days and a Gregorian year consists of 365 days. All government employees who had been enjoying receiving 11 days extra pay every year will not be able to enjoy it anymore. In one way, I think it is a very positive step taken by Saudi government to reduce disparity between government and private jobs. It has been observed from a long time that Saudi employees prefer government jobs due to many perquisites and salaries paid to government employees and hijri year was one of them.

If we make a simple mathematical exercise, we can establish the impact of this decision on your salary. Let’s say an employee earns SR 10,000 per month and SR 120,000 per annum. Government used to pay him SR 120,000 for 354 days of work i.e. SR 339 per day. Now with the move to Gregorian calendar, they will be paid same SR 120,000 per annum for 365 days. In other words, an employee who used to earn SR 10,000 per annum will lose around SR 3,700 per annum.

Earlier in the month, government announced an increase in fee of different categories of visas to Saudi Arabia. As a result of it, the visa cost for Family Visit visa, Exit Re-entry visa and Hajj and Umrah visa has been increased significantly. Recommended: Exit Re-Entry, Family Visit, Hajj, Umrah Visas Fee drastically increased

There is a rumor in the circulation that government is considering to increase the labor office fee from SR 2,400 to SR 6,000. Although Jawazat has clarified that no decision has been made so far about this matter. But they have not denied the fact that they are not going to increase the fee. Recommended: Jawazat Clarifies the increase in Labor Office Fee from SR 2,400 to SR 6,000

Source: Gulf News

Latest News: Jawazat Related
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  4. Shut down all small grocery stores (Baqalas) from Saudi Arabia – Shoura Council Member
  5. Expatriates can start 100% own business in Saudi Arabia – King Salman


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