Custodian of the Two Holy Mosques King Salman has ordered to restore annual allowance of all government employees through a Royal Decree with the beginning of 2019. 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 Jan 2019 with prospective effect. There will be no differential payment for the months of Oct 2016 to December 2018.
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. It means that the government employees who were getting a mobile allowance above SR 1,000 before Sep 2016, will start receiving it again.
4-Employees can expect an increment in salaries at year end or at the renewal of the contract. The annual increment had been halted by the Saudi Government.
5-The upper cap for overtime and bonuses has also been removed. However, a stricter control on overtime will be applied.
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. Many of the government employees were not entitled to the transportation allowance during their annual leave.
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