Monday, November 7, 2016

Ministry sets out 9 conditions for Bonus Payment to Employees in Saudi Arabia

The current year has been a year of dramatic changes in Saudi Arabia. We have seen so many changes in the rules, regulations, fee structures, traffic violations and much more which have not been witnessed before. Do you remember the announcement made by the Saudi government for reduction of salaries of Ministers and cutting down the benefits of normal government employees? In continuity to this, the Ministry of Civil Affairs has set down 9 conditions which each and every employee in the civil service needs to fulfil to get bonus payment (if any). I have explained these conditions below. Recommended: King Salman cuts down salaries of all Govt. employees by up to 20%

  1. The amount of bonus cannot exceed 75% of the employee’s basic monthly salary.
  2. An employee cannot be given more than 6 bonuses in any particular Hijri year.
  3. The decision to award the bonus will be taken based upon the performance of the employee in past two years.
  4. Total payment of bonus should not exceed 35 percent of the money allocated for recruiting workers.
  5. Every department has to prepare a budget for paying such bonuses and the amount of bonuses to be paid to workers, the ministry explained.
  6. Only those employees, who contribute to implement the department’s objectives and vision, provide exceptional ideas and take initiatives to realize the Vision 2030 will be eligible to get the bonus payment.
  7. Employees who point out flaws and weaknesses in the department internal controls and make proposals for the improvement in processes will be given priority while allotting the bonus.
  8. The employees who are fully devoted to their jobs, ready to work late hours without any compensation for the purpose of completing the projects on due dates are more likely to get the bonus.
  9. Departments may set up three mechanisms to select employees for the bonus.

Source: Saudi Gazette
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