Saudi Arabia’s minimum wage is a legal requirement for all employers!! It sets the minimum wage for work. Although it does not cover all occupations and jobs the minimum wage covers most workers in both the private and public sector οΈ πΈπ¦ π ..
Saudi Arabia operates on a two-tier minimum wage system!! The government sets the general level wage while employers determine specific wages for their employees οΈ πΈπ¦ π. Currently this general minimum wage stands at 1,500 Saudi Riyals (SAR) per month for 24 hours of work; any extra hours worked should be considered overtime and compensated accordingly πΈπ¦.
The base pay is suitable just to particular sectors in the country such as the building and construction services transport and wholesale and retail trades π§. All other sectors set the incomes at their discretion however the basic rate of 1,500 SAR is usually taken as a reference οΈ. The base pay applies mainly to farming and inexperienced workers and is not relevant to domestic employees migrants and interns .
The minimum wage also applies to all public sector employees and the basic salary for public sector employees is set at 2,000 SAR as of 2015. Public sector employees however are eligible to receive bonuses commissions, and other forms of non-salary benefits .
The minimum hourly rate is SAR 10 . An employee who works for less than 24 hours in a week will be paid the minimum hourly rate for any hours worked π οΈ. For e . g. if an employee works for 18 hours in a week he/she will be entitled to receive 18 * 10 SAR = 180 SAR for that week π οΈ.
In addition to the mandatory minimum wage requirement, the government also sets a cap on the wages for workers in certain professions. For example, the maximum salary for workers in the oil and gas sector is 18,500 SAR per month . This cap is set to prevent employers from arbitrarily setting wages to employees who are highly skilled and in great demand as it may lead to an inflation in the cost of labor .
It is essential to be aware that Saudi Arabia’s minimum wage system applies to all citizens regardless of profession or origin. This means all foreign workers should be treated the same as all other employees and paid at least the government-set minimum wage . Employers who fail to abide by these terms face heavy fines as well as other sanctions .
In conclusion the minimum wage in Saudi Arabia is set at 1,500 SAR per month and 10 SAR per hour for all eligible workers subject to certain exceptions πΈπ¦. This ensures that the basic needs of the most vulnerable workers in the country are met while still allowing employers to set wages for higher skilled employees based on their experience and qualifications. The minimum wage law is strictly enforced and employers found to be in breach of the regulations may face severe penalties . . .
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