Saudi Arabia cuts ministers’ salaries, public sector perks

No annual bonus will be given for the next Islamic year, decree says

Saudi Arabia’s government has decided to curb some financial perks for public sector employees, the government said following its weekly session yesterday chaired by King Salman Bin Abdul Aziz.

A royal decree announced a cut in ministers’ salaries by 20 per cent and for members of the appointed Shura Council by15 per cent.The decision comes as low oil prices have pushed Gulf states to rein in lavish public spending.

No annual bonus will be given for the next Islamic year, due to start on October 2, and the renewal or extension of existing contracts will not include any salary increases.

Holidays reduced

The employees will have their bonuses, allowances and financial perks cancelled, amended or suspended according to their categories, the government added.

Annual holidays for ministers will also be reduced from 42 days to 36.

Previously, an employee would receive an additional 25 per cent of his salary for work performed outside normal working hours. It would reach 50 per cent for work performed on official holidays.

Under the new rules, public sector employees will not receive a transport allowance during their holidays and if they don’t use their 60 off days during the year, they lose them.

The financial reductions will be applied to all public sector employees regardless of their nationalities even if they are in the military.

Government agencies will be given 60 days to amend their statutes to ensure full compliance with the decree.