SAUDI ARABIA – Minimum wage rule to take effect soon

THE ministry of labor has decided to implement its decision of fixing SR 3, 000 as the minimum salary for Saudis working in the private sector effective this October, according to the Saudi Gazette.

 

The decision conforms to the Nitaqat requirement that stipulates a Saudi worker who will be counted in the Saudisation quota should be paid a monthly salary of not less than SR3,000. The decision is applicable to both small and big enterprises, and is obligatory for every single private establishment regardless of its size and activity.

 

The report states that the ministry has given enough time to the private sector to comply with the minimum wage regulations. They said a Saudi whose salary is SR3,000 or more will be included in the head count for Saudization quota under the Nitaqat programme as one Saudi employee while those with salaries below SR3,000 will be counted as half a Saudi worker. Any Saudi worker whose salary is less than SR1,500 will not be considered.

 

Through such legislations, the ministry intends to create an appropriate work environment to encourage young Saudis to join the private sector, the sources said