Ministry to allow the private sector to cut salaries by 40% – Saudi Arabia

Ministry to allow the private sector to cut salaries by 40% - Saudi Arabia

Ministry to allow the private sector to cut salaries by 40% as per the new article published by Al Arabiya English. The initial report was published by pan-Arab daily Asharq al-Awsat around the current difficult time globally. More details below.

Ministry to allow the private sector to cut salaries by 40%

Ministry of Human Resources and Social Development agreed to bring some changes in Labor System. The new changes will allow employers to cut salaries of employees by 40% for a period of six months. After six months, companies will have a choice to terminate the contract. However, there are three conditions that should be met before terminating the contract.

Update: However, it is also been said that working hours must be reduced to cut the salary. Salary Reduction can be between 1-40 % depending on hours reduced.

Below is the quote from Al Arabiya.

Al Arabiya Report

“The new regulations also include a provision that will allow employers to continue benefiting from state subsidies to the private sector of any kind, such as helping to pay workers’ wages or exemption from government fees, stressing not to resort to the termination of the employment contract, except after three conditions are met to consider the conditions within the description the majeure force,” Asharq al-Awsat reported citing the document.

Al Arabiya English, 2020

According to the report on the impending ministerial decision, the three conditions set to terminate contracts as the following: The passing of six months since a salary cut has come into effect, the reduction of pay, annual leave and exceptional leave have all been spent and if a company proves that it is facing financial difficulties given the economic circumstances as a result of the COVID-19 pandemic.

Al Arabiya English, 2020

Your Employers will release more information, so don’t panic and wait for the information. Your Employer may not even take this route.

Riyadh Xpress

Finally, follow Riyadh Xpress’s:

In addition, check out the latest articles by Riyadh Xpress.

  • Firstly, King Salman urged the world to respond to the human crises causes by Covid-19: Click Here.
  • Secondly, Social Distancing Measures implemented in supermarkets: Click Here.
  • Thirdly, the latest penalties on Iqama: Click Here.
  • Fourthly, Disabled parking violation/fine in Saudi Arabia: Click Here.
  • Lastly, hackers attack again to get your personal data: Click Here.

Check out the most viewed articles


Uber eats discontinued its service in Saudi Arabia

Previous article

Smokers among the vulnerable group for COVID-19 including Seesha and E-Cigarette

Next article

You may also like


Leave a reply

Your email address will not be published.