RIYADH: The Shoura Council approved on Sunday a 5 percent increase in pensions paid to retired public servants.
The house unanimously approved of the decision with an unprecedented ovation among its members.
It was also decided to appoint a special committee to work out the modalities of making the payments to the pensioners.
The move to increase pensions from the General Organization for Social Insurance (GOSI) follows a recent announcement to increase government retirement funds by 15 percent.
When the motion was tabled at the council, Shoura members Muhammed Al-Quwaihes, Mohammed Abu Saaq and Yousuf Maimani insisted that the 5 percent increase should be given in one lump sum annual payment.
It was revealed during the deliberations that 30 percent of pensioners in the Kingdom receive less than SR2,000 per month, while 64 percent receive less than SR4,000.
According to the National Association for Pensioners, around 40 percent of pensioners rent their homes.
The association has put forward a proposal to increase the minimum monthly pension to SR3,000 from the present SR1,700.
In a petition submitted to the Shoura Council, the pensioners body had urged the government to increase pensions by different amounts based on the amount of the monthly stipend: 7 percent for those who receive less than SR3,000 per month; 5 percent for those who get less than SR5,000; 3.5 percent for those who earn less than SR8,000 and 5 percent to those who earn more than SR15,000.
In January 2008, the Council of Ministers, chaired by Custodian of the Two Holy Mosques King Abdullah, approved an annual inflationary allowance of 5 percent as part of measures taken by the government to counter rising inflation. The Cabinet said government employees would receive an allowance of 5 percent of the basic salary in the first year, 10 percent in the second year and 15 percent in the third year. The employees began receiving the allowance along with their monthly salaries in Muharram 1429 A.H. (January 2008).
The Cabinet adopted a 17-point program to offset the effect of rising inflation and prices in the country.
Apart from inflation allowance, the program included a 10 percent increase in social insurance and subsidies for essential products such as rice, baby milk and barley.
Finance Minister Ibrahim Al-Assaf said the government was spending about SR12 billion annually on direct subsidies. He estimated the additional annual spending at SR10 billion as a result of the payment of 5 percent inflation allowance and 10 percent additional allocation for social insurance.
