Businesses oppose SR 6,000 minimum wage for nationals

Saudi businessmen have unanimously rejected a proposal made by the National Workers’ Committee to increase the minimum wage of Saudis in the private sector to SR 6,000.
The committee made the recommendation during the Social Dialogue Forum organized by the Ministry of Labor, which ended its deliberations in Jeddah yesterday.
“We made the proposal taking into account realistic criteria, which showed that the minimum wage should be SR 6,000,” said Nidal Radwan, president of the committee.
“We feel that in order to lead a decent life, a worker needs a minimum of SR 5,837 excluding luxury items and expenses such as telephone and the Internet,” he said.
Although employers refused to consider this amount as a minimum wage, all parties agreed that it guarantees a dignified life. “It is not surprising that employers find it difficult to change what has been the norm for the past 30 years. Therefore, we need rules and regulations that bind employers to pay the aforesaid minimum wages,” he added.
The forum urged all social partners to rally together to be able to overcome the challenges of the labor market, and offer smart and innovative solutions to accompany the market’s latest reforms.
Fahad Al-Takhifi of the ministry said the next forum would focus on the role of women and the challenges faced by them in the industrial and food sectors as well as the retail sector. The number of women employees in the private sector has reached 160,000.