New rules to boost pay of Saudi employees

JEDDAH: Labor Minister Adel Fakeih announced yesterday that a Saudi worker in the private sector should be given a monthly salary of at least SR 3,000 to account him/her as a “full” Saudi employee for the Nitaqat system.
“Those Saudis receiving SR 1,500 and above will be calculated as “half” worker and those getting less than SR 1,500 will not be counted at all for Nitaqat,” he said while explaining new regulations aimed at making the private sector more attractive to Saudis.
“The new regulations will be applied to small and big institutions after five months,” the minister said, adding that the grace period was given for companies to take corrective measures to protect their interests. A Saudi student working part-time in a private firm would be counted as a “half” worker on condition that the company pays a monthly salary of SR 1,500 and social insurance premium. A part-time worker would not be counted for Nitaqat if he/she works for more than two institutions.
He also pointed out that the number of such part-time workers should not exceed 10 percent of total Saudi workers. However in restaurants, their number could reach up to 25 percent.
“Employment of a handicapped Saudi will be counted as four Saudi workers so long as they get a salary of SR 3,000, their insurance premium paid and do not work for any other company,” Fakeih said. But the number of such workers should not exceed 10 percent.
Employment of a released prisoner would be counted as two Saudi workers for two years after his release on condition that he should be given a salary of SR 3,000 and insurance premium, but after two years he will be counted as one. However, the number of such workers should not exceed 10 percent. “All the three — handicapped, students and released prisoners — should not exceed 15 percent of total workers but in restaurants their number can reach up to 30 percent.”
He said the ministry would continue to develop the Nitaqat system to employ more Saudis and improve their job condition.
“We don’t force any company to increase salary. But those giving SR 3,000 salary would not be equal to those giving less in terms of benefits.”
The Nitaqat system has been instrumental in creating jobs for 250,000 Saudis in less than a year.