DHAHRAN, 14 September 2005 — In a move bringing delight to its employees, after much consideration Saudi Aramco has decided to raise compensation in accordance with the directions of King Abdullah. The action was outlined in a memo issued to employees yesterday signed by Saudi Aramco President and CEO Abdallah S. Jum’ah.
The memo specified the exact levels of compensation and advised that the “special payments” would be made in Ramadan. The instructions for the compensation increases came on the orders of the minister of petroleum and mineral resources and the chairman of the board of Saudi Aramco.
Under the guidelines, Saudi Aramco’s junior grade Saudi employees will receive a bonus equivalent to one month base salary. An additional payment equivalent to one month of base salary will be issued to them on an annual basis beginning this year.
Senior Saudi Aramco Saudi staff will receive a payment equivalent to one month base salary annually beginning this year. Saudi Aramco’s Saudi non-employees such as apprentices and trainees will receive a bonus equivalent to two months of their stipends on a one-time basis.
Saudi Aramco retirees receiving an annuity from the company will from this year receive an annual one-month payment based on their monthly Saudi Aramco supplemental annuity. Saudi Aramco’s expatriate employees will receive a bonus equivalent to one month of base salary, one-time only.
The oil giant’s staff are already some of the best paid in the Kingdom. Consequently, prices for many basics in the Eastern Province, where many Saudi Aramco employees are based, are significantly higher than in other parts of the country.
In recent years the company has been attempting to contract out many of its non-core operations. Individuals, Saudi and non-Saudi, working for Saudi Aramco contractors will not be receiving salary increases, although now most likely they will have to cope with a further rise in market prices as landlords and traders attempt to grab a bit of Saudi Aramco’s generosity.
