RIYADH: Custodian of the Two Holy Mosques King Salman has ordered a 20 percent reduction in the salaries and benefits of senior government officials as part of austerity measure amid lower oil prices.
A royal decree carried by the Saudi Press Agency (SPA) and broadcast on Ekhbariya TV said the salary curb also affects Cabinet ministers, including Crown Prince Mohammed bin Naif, deputy prime minister and minister of interior, and Deputy Crown Prince Mohammed bin Salman, who is also defense minister.
The decree includes a 15 percent reduction in car and housing benefits for members of the country’s highest consultative body, the Shoura Council.
The changes are to start with the Islamic new year, Muharram 1, which falls on October 2.
“The cabinet has decided to stop and cancel some bonuses and financial benefits,” read a line of text on Ekhbariya, as a minister read to assembled ministers and royals, including King Salman, a list of cuts in various grades in the civil service during a Cabinet meeting in Riyadh.
The announcement of pay cuts for government employees, who make up about two-thirds of working Saudis, was the first ever as the Kingdom tries to rein in spending and boost the appeal of private sector jobs amid complaints of unemployment and low wages.
Overtime bonuses were also curbed at between a quarter and half of basic salaries, while annual leave may now no longer exceed 30 days.
An exception to the curbs would be made for troops involved in combat operations along the southern border and abroad as part of an 18-month military intervention led by the kingdom in neighboring Yemen.
Saudi Arabia unveiled an economic reform plan this year to wean the kingdom off its addiction to oil, on which it depends for the overwhelming share of government revenue.
The so-called “Vision 2030” initiative aims to jumpstart the private sector, provide jobs for a growing population and collect more non-oil revenue.
A royal decree carried by the Saudi Press Agency (SPA) and broadcast on Ekhbariya TV said the salary curb also affects Cabinet ministers, including Crown Prince Mohammed bin Naif, deputy prime minister and minister of interior, and Deputy Crown Prince Mohammed bin Salman, who is also defense minister.
The decree includes a 15 percent reduction in car and housing benefits for members of the country’s highest consultative body, the Shoura Council.
The changes are to start with the Islamic new year, Muharram 1, which falls on October 2.
“The cabinet has decided to stop and cancel some bonuses and financial benefits,” read a line of text on Ekhbariya, as a minister read to assembled ministers and royals, including King Salman, a list of cuts in various grades in the civil service during a Cabinet meeting in Riyadh.
The announcement of pay cuts for government employees, who make up about two-thirds of working Saudis, was the first ever as the Kingdom tries to rein in spending and boost the appeal of private sector jobs amid complaints of unemployment and low wages.
Overtime bonuses were also curbed at between a quarter and half of basic salaries, while annual leave may now no longer exceed 30 days.
An exception to the curbs would be made for troops involved in combat operations along the southern border and abroad as part of an 18-month military intervention led by the kingdom in neighboring Yemen.
Saudi Arabia unveiled an economic reform plan this year to wean the kingdom off its addiction to oil, on which it depends for the overwhelming share of government revenue.
The so-called “Vision 2030” initiative aims to jumpstart the private sector, provide jobs for a growing population and collect more non-oil revenue.
