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End of Golden Era: Saudi Arabia cuts down 20% salaries of all Govt. employees

RIYADH – Custodian of the Two Holy Mosques King Salman, on Monday ordered to cut down the salaries of all minsters by 20 percent and of Shoura Council members by 15 percent. All the Govt. Employees will see a major fall in their salaries including the deputy Crown Prince Mohammed bin Salman who is also the son of King Salman. The decision is set to become effective from 1st Muharram 1438 i.e from 1st October.

The Cabinet , chaired by King Salman at Al- Yamamah Palace in Riyadh on Monday, also made some more decisions:

  • No increment at the year end. There will also be no financial increase while renewing contracts or extending their period as well as in re-hiring staff.
  • Overtime bonuses were also curbed at between a quarter and half of basic salaries
  • Annual leave may now no longer exceed 30 days. Annual leave for ministers has been reduced to 36 days from 42 days. They will be compensated for the days exceeding 90 days from their annual leave credit.
  • No Transportation allowance for employees in vacation period.
  • Limit to the phone bill will be implemented. State will bear the cost of monthly phone bills of government employees amounting to a maximum of SR1,000 only.
  • All ministries and government departments shall prepare a statement about the details of posts in the grade of 10 or below in the non-essential sectors that remain vacant for more than three years or those which are vacant for more than six years in the essential sectors for which allocations were being made from the state exchequer.The details shall be sent to the Ministry of Finance within 30 days.
  • This report shall be reviewed by a ministerial committee constituted for this purpose and the committee shall prepare monthly report about the vacancies. It shall send the final report to the ministry within 90 days of its constitution.
  • Appointments and hiring in all vacant posts and programs in all government posts will be halted until the end of the current fiscal year.
  • Any excess staff in other government departments will be utilized on rotation basis to fill vacancies.
  • In case of urgency to make any appointments in certain posts, the case shall be presented to the King and the Cabinet will examine it after the approval of the general budget.
  • The Cabinet also decided not to hire any non-Saudis or renew or extend their contract in non-essential sectors until the end of the current fiscal year.