Monday, September 26, 2016

King Salman increases salaries of all Govt. employees by up to 20%

Custodian of the Two Holy Mosques King Salman has ordered to restore salaries of all government employees through a Royal Decree. In September 2016, King Salman ordered a cut down in allowances of all government employees as an austerity measure to reduce fixed cost. This is a positive sign from King Salman and overall for the economy. It will boost up the confidence of small and medium size investors in the economy. Currently, Saudi Arabia has been undergoing one of the worst recessions in its history. I hope and believe that under the leadership of King Salman, we would be able to recover our economy. The salary with increased amount will be paid from the month of May 2017 with prospective effect. There will be no differential payment for the months of Oct 2016 to April 2017.

  1. Salaries of government ministers will be increased by 20%. Current salaries of ministers are SR 40,800 which will go up to SR 51,000 after application of this Royal Decree. There are total 143 ministers in Saudi Arabia.
  2. Housing and Transportation Allowance of members of Shoura Council will be increased by 15%. Saudi government will pay an additional SR 7 million a year with this particular decision. The salary of a shoura member is SR 22,483 which will be increased to SR 26,450. There are total 150 Shoura Members in Saudi Arabia.
  3. The upper limit for the mobile allowance of SR 1,000 is removed.
  4. Employees can expect increment in salaries at year end or at the renewal of the contract.
  5. The upper cap for overtime and bonuses has also been removed.
  6. Annual leave of government employees can exceed 30 days from now onwards. Annual leave for minister has been increased to 42 days from 36 days.
  7. There will be transportation allowance for employees during the time when they are on vacation.
  8. It has also been decided that the contracts of expatriates on non-essential positions will not be renewed. No expatriate will be hired in any such position.
  9. Military, troops and security officials and intelligence officials involved in security, military and intelligence operations in the country will be given 2 months bonus salaries.

Source: Saudi Gazette
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