Govt cuts ministers’ salaries, housing and car allowances

Saudi Arabia has unveiled pay cuts for government employees for the first time, as it attempts to further rein in spending at a time of low oil prices. A royal decree said ministers’ salaries would be reduced by 20%, and housing and car allowances for members of the advisory Shura Council cut by 15%. Lower-ranking […]

Saudi Arabia has unveiled pay cuts for government employees for the first time, as it attempts to further rein in spending at a time of low oil prices.
A royal decree said ministers’ salaries would be reduced by 20%, and housing and car allowances for members of the advisory Shura Council cut by 15%.
Lower-ranking civil servants will see wage increases suspended, and overtime payments and annual leave capped.
About two-thirds of working Saudis are employed in the public sector.
Their salaries and allowances accounted for 45% of government spending in 2015, or $128bn (£99bn), and contributed to a record budget deficit of $98bn.
In April, Crown Prince Mohammed bin Salman unveiled a reform plan intended to reduce the government’s spending and lessen its dependence on oil revenue.