Riyadh – The Saudi Finance Ministry announced in a statement on Sunday that salaries disbursement of state employees will be based on a new schedule that includes determining the fifth day of every solar zodiac as a date for transferring salaries to employees banking accounts by virtue of the Council of Ministers’ resolution.
The Ministry of Finance explained in the statement the application of the Council of Ministers’ Resolution No. 551 issued on 25/12/1437 H corresponding to 27/09/2016 G on the disbursement of salaries of the state’s employees in accordance with the Royal Decree No. M / 6 issued on 12/4/1407 H, indicating that the circular issued by the Ministry on instructions about the closing of the current fiscal year included setting the 27th of October 2017 as the day of disbursement salaries for this month of the State’s employees.
This new phase will reinforce several economic aspects and unite the salaries’ date among employees, in a Saudi quest to face economic challenges in a well-studied procedure.
Economist Hammoud al-Shadawi told Asharq al-Awsat that the resolution is a response to current social, economic and educational conditions’ requirements that are linked to regional and international relations.
Shadawi said that this resolution will save the country 4%, equal to USD4 billon in one fiscal year and that “it will have benefits on the market regarding uniting organizational frameworks….”
Total salaries in Saudi Arabia exceeded USD100 billion in 2015, rising 3% compared to 2014. Bonuses represented 25% of total salaries and percentage of state revenues in 2015 due to drop of oil prices was high.
International figures reveal that the Saudi economy, despite the fluctuations and drop of oil prices, continue its growth.