Govt employees in Saudi Arabia get 30pc pay rise

Govt employees in Saudi Arabia get 30pc pay rise
BY HABIB SHAIKH KHALEEJ TIMES 23 April 2008

JEDDAH — Following an increase in salary of their employees declared by some private companies, government employees in Saudi Arabia are expected to receive a 30-per cent pay rise.

Some private companies had declared pay hikes of up to 40 per cent as part of efforts to confront an unprecedented rise in consumer prices.

According to a recent report carried by Al-Arabiya satellite channel, a decision on the salary increase for public sector employees would be issued shortly. But there was no official confirmation of the report.

Abdullah Dahlan, a member of the Shoura Council, emphasised the need for urgently discussing the issue in the Shoura in order to present its recommendations to the Council of Ministers.

“I am very happy to learn this news and hope the government would take a quick decision on this matter,” said Mohammed Shaker Al-Dahlawi, director of compensations at the ministry of transport.

He urged the ministry of commerce and industry to prevent businessmen from increasing prices of essential commodities further after the new salary raise as they did last time.

In August 2005, Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz issued an order raising the salaries of public employees, including military officers, by 15 per cent. Businessmen exploited the increased purchasing power of consumers and hiked prices.

Al Dahlawi called on the government to take steps for bolstering the value of the Saudi riyal against other currencies as part of efforts to control growing inflation in the country. The riyals peg to a weakening US dollar has made imports more expensive.

“I believe that the large number of loans received by people is another reason for inflation,” he said, proposing a 25 per cent cut in such loans. An increase in salaries and reeling in inflation would reduce the demand for consumer loans.