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Royal orders restores annual pay raise to government workers
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Also orders 1,000-riyal monthly ’cost of living’ allowance
Bloomberg – King Salman ordered extra pay for Saudi government workers and soldiers this year after the implementation of value-added taxation and a surge in fuel prices stirred grumbling among citizens, highlighting the kingdom’s struggle to overhaul its economy without risking a public backlash.
The handouts show how hard it is for Saudi rulers to overhaul a decades-old social contract based on government largesse for political loyalty, even after Prince Mohammed, 32, tightened his grip on power to emerge as the kingdom’s predominant leader. Last year, King Salman also reversed cuts to public sector salaries.
Finance Minister Mohammed Al-Jadaan, appearing on state television to explain the reasons behind the price increases, struggled to keep up with repeated questions over the impact on citizens. Calls for the return of annual pay raises for public sector workers were persistently trending on social media.
King Salman said he issued the orders after Prince Mohammed, his son and heir, explained that the recent measures “would increase the burden on some citizens,” according to the royal decree published by the official Saudi Press Agency.
The orders also included:
- 500 riyals extra a month for retirees and social benefits recipients
- 10 percent bump in student allowances
- The government will bear the cost of VAT for citizens benefiting from private healthcare and education services
The handouts will cost the state more than 50 billion riyals, Saud Al-Qahtani, an adviser to the royal court, said on his Twitter account.
