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SR3,200 set as minimum wage for Saudi beneficiaries of employment support
Published in The Saudi Gazette on 12 - 10 - 2020

RIYADH — Saudi Arabia's Human Resources Development Fund (HADAF) has made four new modifications to its regulations for the employment support program.
The move is expected to bring about a remarkable increase in the number of Saudi employees who are beneficiaries of the government support program.
Most important among the modifications is reducing the minimum wage for the Saudi employees eligible for the support from SR4,000 to SR3,200.
Other modifications include calculating an additional 10 percent support for the affected activities; another 10 percent support for several other targeted professions, in addition to the inclusion of employees who were hired from July 1, 2019, within the purview of the program, provided that the support for the beneficiaries began from the date of their registration in the program, the Saudi Press Agency reported.
The program supports the monthly salaries of Saudi men and women in all jobs and professions in the entire private sector establishments ranging from 30 percent to 50 percent over the course of two years, provided that the employee's salary is not more than SR15,000.
As part of the program, the private firms also receive an additional 10 percent support for hiring women and persons with disabilities, as well as upon providing employment opportunities in all cities except Riyadh, Jeddah, Dammam, and Al-Khobar, as well as in small, micro and medium enterprises, provided that the maximum support does not exceed 50 percent of the employee's monthly wage, or SR3000, whichever is lower.
HADAF seeks to ensure maxim benefit to the young Saudi men and women through the employment support program and increasing their participation in the labor market. This program also aims to empower private sector establishments, ensure their stability and develop their performance, and mitigate the economic impacts and repercussions of coronavirus.
The new modifications have been made following a series of workshops held by HADAF branches with several sectors in the labor market and a number of chambers of commerce and industry in various regions of the Kingdom. Notes and suggestions of business owners and beneficiaries of the program in this regard were also taken into consideration while framing the modifications.


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