Saudi Arabia will raise the minimum wage for its citizens from 3,000 riyals ($800) to 4,000 riyals ($1,066), a 33 percent increase, the Kingdom’s Ministry of Human Resources and Social Development announced on Wednesday.
The move will come into effect five months from Wednesday, the ministry added without specifying a specific date.
If a Saudi Arabian worker receives a monthly salary below the new minimum wage, the employee will not be counted as part of the company’s designated quota od citizen employees, according to the ministry.
Saudi Arabian employees who receive a salary between 3,000 and 4,000 riyals will also be counted as half of citizen worker in the quota count, the ministry said.
The new ministerial decision also applies to students who are employed part-time, part-time employees, and those who work flexible working hours.
The move comes to attract more Saudi Arabian citizens to the private sector as well as ensure their rights are met.
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