Saudi gives employers $400m to pay nationals more

Gov’t is partially compensating private employers after compulsory pay increases for nationals

The Saudi government has given SAR1.5bn ($400m) to 88,000 private companies to cover the cost of salary hikes for nationals, Labor Minister Adel Fakeih has revealed on Twitter.

The money has been distributed after the ministry announced compulsory pay increases for Saudis.

Private employers were unable to avoid the pay rises because of parallel minimum quotas for hiring nationals under the Saudisation program.

It was feared the artificial pay rises would drive up costs in the kingdom, leading the government to partially cover the salary rises.

Fakeih said about 70 percent of the total went to small and medium enterprises who were affected the most.

Meanwhile, the ministry’s Human Resource Development Fund also is providing a SAR24,000 allowance for new job seekers, paid in four instalments over 24 months, Arab News reported.

Fakeih said the ministry also had continued to deport illegal workers following a seven-month amnesty last year that led to more than 1 million leaving the kingdom.

Another 427,000 had since been deported, he said.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Investor interest in real estate investment trusts (REITs) has...

First bank merger in 20 years sets Saudi Arabia up for more deals

First bank merger in 20 years sets Saudi Arabia up for more deals

Q&A look at what the planned merger of HSBC and RBS’s Saudi ventures...

A natural move: How Dubai Chamber is strengthening its ties in Latin America

A natural move: How Dubai Chamber is strengthening its ties in Latin America

With vast resources and more than half-a-billion people, the...

Most Discussed
sponsoredTracking