Saudi Arabia is to pay part of the salaries of certain nationals working in the private sector in the hope of helping to cut the country’s existing unemployment rate of 12.9%.
According to the state-run Saudi Press Agency, the Kingdom’s Human Resources Development Fund has launched a new programme whereby it will pay 30% of the monthly salaries of Saudi workers during their first year of employment. The figure will fall to 20% in the second year and 10% in the third.
To be eligible, workers must earn between 4,000 Saudi riyals (US$939.61) and 10,000 riyals (US$2349) per month, be aged between 20 and 40 years, and must not already be employed in either the private or public sectors, or own their own business. Their employers should also employ fewer than 50 staff.
The aim of the move is to encourage local job creation, persuade more nationals to participate in the labour market and to equip workers with necessary skills based on market requirements. As a result, the financial support increases if employers take on Saudi women, nationals with special needs and citizens from villages.
The world’s biggest oil exporting country is currently undertaking a series of reforms to help lower its dependence on oil income, The National reported, with women’s participation in the workforce forecast to rise to 30% from 22% now.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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Saudi Arabia is to pay part of the salaries of certain nationals working in the private sector in the hope of helping to cut the country’s existing unemployment rate of 12.9%.
According to the state-run Saudi Press Agency, the Kingdom’s Human Resources Development Fund has launched a new programme whereby it will pay 30% of the monthly salaries of Saudi workers during their first year of employment. The figure will fall to 20% in the second year and 10% in the third.
To be eligible, workers must earn between 4,000 Saudi riyals (US$939.61) and 10,000 riyals (US$2349) per month, be aged between 20 and 40 years, and must not already be employed in either the private or public sectors, or own their own business. Their employers should also employ fewer than 50 staff.
The aim of the move is to encourage local job creation, persuade more nationals to participate in the labour market and to equip workers with necessary skills based on market requirements. As a result, the financial support increases if employers take on Saudi women, nationals with special needs and citizens from villages.
The world’s biggest oil exporting country is currently undertaking a series of reforms to help lower its dependence on oil income, The National reported, with women’s participation in the workforce forecast to rise to 30% from 22% now.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
OTHER STORIES THAT MAY INTEREST YOU
Saudi Arabia mandates payroll cards for domestic workers
Navigating important acronyms in Saudi Arabia and the UAE
German politicians call for Muslims to pay 10% mosque income tax surcharge
