Saudi ministry clarifies decree on minimum wage

The royal decree that fixed minimum monthly salaries for Saudis at SR 3,000 was applied only to government departments and to private companies and institutions, the Labor Ministry announced yesterday. The ministry said it had conducted a study on the economic and legal impacts of the minimum wage amount. “We also reviewed international experiments in this regard, to learn its positive and negative aspects.” The ministry said it was developing the Nitaqat system to include wages to be paid to Saudis workers while calculating the rate of Saudization at companies. “We hope the new system would encourage companies to pay higher wages to Saudis,” the statement said. However, the ministry pointed out that fixing a minimum wage for Saudis in the private sector would require more studies, considering higher national interests and economic impact. “It requires the society’s support to make it acceptable while implementing the system,” a ministry statement said. From: Arabnews