Salary Increment rules in Saudi Labor Law

You might have met some people who have been working on the same salary for decades. Are there any rules for salary increments in Saudi Labor Law? What can you do if you don’t receive a salary increment? 

Inflation rate in Saudi Arabia

The inflation rate in Saudi Arabia has been in the range from 2% to 2.5%, which means that every employee should get at least this much salary increment every year.

According to an article published in the Saudi Gazette, salaries in Saudi Arabia are expected to increase by 4.5% during the year 2020.

Inflation rate in Saudi Arabia

Salary Increment in Saudi Labor Law

Unfortunately, there is no rule for the salary increment in Saudi Labor Law which leaves it to the employer to decide the salary increment. 

However, once the salary increment is given to an employee, the employer cannot reduce it in the following years without the worker’s written consent.

In my personal opinion, the labor office should not intervene in this matter as the demand and supply rule determines the salary package. However, there should be at least a rule for the minimum salary of expatriate employees in Saudi Arabia.

Salary Increment in Saudi Labor Law

What to do in such a situation?

If a worker believes that he deserves a better salary, but the employer does not give a salary increment, he can look for another job and resign from his current job. In this situation, he can either, 

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