Private firms raise housing, education allowances by 5%

JEDDAH: Private sector companies and institutions in the Kingdom raised this year education and housing allowances and benefits for their employees by 5 percent over last year.
A leading human resources consultation firm said the reason for the increase is that some companies fixed its status in the market, as could be seen from a survey conducted on 100 multinational and local companies from various sectors.
Focus was also placed on more staff training, in order to obtain better productivity.
The optimal employment of the labor force is one of the greatest concerns of companies today, as are plans to reward achievements at the workplace.
The last survey of allowances and benefits in the Gulf Cooperation Council (GCC) countries, conducted by Aon Hewitt, showed that companies in the Kingdom has reviewed allowances and benefits granted this year, and most of them have been spending more moderately compared to with previous years.
Abdulaziz Jastaniah, a human resources expert and a member of the Committee of Human Resources at Jeddah Chamber of Commerce said that this rise will reach 10 percent in 2020.
The reasons for the rise, he said, are: The privatization of some government sectors, the entry of international companies into the Saudi market, and competition between local and international companies in attracting employees.
He pointed out that the rises will help improve employees’ living standards, attract more employees to companies and secure their loyalty. Education allowances in the Kingdom rose by 5 percent; they range, per child, from SR19,000 in the case of laborers to SR32,000 in the case of administrators and executives.
Housing allowances rose by 5 percent in various jobs in the GCC; they range from 45,000 riyals for laborers to 205,000 riyals for executives.
Aon Hewitt experts said companies are still keen to attract skills from around the world, but they generally spend more selectively, in line with the macroeconomic environment.
The Aon Hewitt survey of allowances and benefits is considered the largest of its kind in the Gulf Cooperation Council. It offers detailed information about groups of the employee, individual countries and groups of benefits.
Robert Richter, Middle East compensation survey manager at Aon Hewitt, said: “The total distribution of allowances and benefits reflects the economic atmosphere in the year 2016. These investments are still very important for companies that want to remain competitive. We have seen a rise in investments by all companies. At the same time, companies review allowances and benefits, and have recorded more moderate spending in comparison to previous years.”