ABHA — The Ministry of Labor has decided to implement its decision of fixing SR3,000 as the minimum salary for Saudis working in the private sector effective this October, according to reliable sources. The decision conforms to the Nitaqat requirement that stipulates a Saudi worker who will be counted in the Saudization quota should be paid a monthly salary of not less than SR3,000. The decision is applicable to both small and big enterprises, and is obligatory for every single private establishment regardless of its size and activity. The sources said the ministry has given enough time to the private sector to comply with the minimum wage regulations. They said a Saudi whose salary is SR3,000 or more will be included in the head count for Saudization quota under the Nitaqat program as one Saudi employee while those with salaries below SR3,000 will be counted as half a Saudi worker. Any Saudi worker whose salary is less than SR1,500 will not be considered. Following the implementation of the minimum wage program, the ministry will introduce a new system for the protection of the wages of all workers, including foreigners. This is basically meant to ensure that all the workers in the Kingdom regardless of their nationalities get their dues on time. The program enables the ministry to closely monitor payment patterns for the workers in the private sector and ensure that employers pay salaries on time. Through such legislations, the ministry intends to create an appropriate work environment to encourage young Saudis to join the private sector, the sources said.
