Home » News » 2023 Labor and Employment Policies in Saudi Arabia: New Amendments to Minimum Wage for Saudis and Expatriates Impacting Working Conditions for Egyptians

2023 Labor and Employment Policies in Saudi Arabia: New Amendments to Minimum Wage for Saudis and Expatriates Impacting Working Conditions for Egyptians

With the beginning of 2023, the Kingdom of Saudi Arabia witnessed a remarkable development in labor and employment policies, and one of the most prominent features of this development was the announcement of new amendments related to the minimum wage for citizens and expatriates alike. In this article, we will delve into the details of these amendments and their impact on the private and public sectors, with a focus on what is new in the working conditions of Egyptians in the Kingdom. In response to economic and social changes, the Saudi government decided to raise the minimum wage for Saudi employees in the private and public sectors to 4,000 Saudi riyals per month. This step is considered a qualitative leap from the previous limit estimated at three thousand riyals, which reflects the state’s keenness to improve the standard of living and enhance the purchasing power of citizens.

Minimum wage for expatriates

On the other hand, the authorities set the minimum wage for expatriates in both sectors at about 2,000 Saudi riyals. This determination comes within the framework of efforts to ensure fair salaries and achieve balance in the labor market. The Egyptian community is one of the largest working communities in the Kingdom, and the Saudi government has paid special attention to regulating their working conditions. These conditions were established in coordination with the Ministry of Human Resources and Social Development to guarantee the rights of Egyptian workers and regulate recruitment and contracting procedures.

The impact of the amendments on different sectors

These amendments are expected to positively impact various sectors, by stimulating productivity and attracting talent. In the medical sector, for example, wages reach 14,500 riyals for doctors, and in engineering they reach 10,715 riyals, while in the education sector they reach 9,050 riyals, and 9,000 riyals for accountants. This diversity in wages reflects the difference in the experiences and skills required for each specialty. The decision was implemented starting in November 2023, and the executive procedures included monitoring and follow-up mechanisms to ensure that all companies and institutions adhere to the new amendments, in order to achieve the desired goals of the decision.

As the Kingdom of Saudi Arabia seeks to regulate the labor market and strengthen bilateral relations with the Arab Republic of Egypt, it has established a set of conditions governing the work of Egyptian citizens within its territory. These conditions contribute to providing a fair work environment and preserve the rights of Egyptian workers in accordance with Saudi laws.

Details of working conditions

The following lines show the basic points of working conditions for Egyptians:

Working Weeks: Working days are scheduled from Sunday to Thursday. Weekly leave: Egyptian employees are granted weekend leave on Friday and Saturday. Weekly working hours: ranging from forty to forty-five hours. Annual leave: varies from 21 days to 30 days depending on length of service. End of service bonus: granted to Egyptian employees upon reaching retirement age. Not receiving a pension after reaching retirement age.

Motives for raising Saudi wages

As for the reasons that led to the increase in Saudi wages, they can be summarized as follows:

Stimulate practical efficiency and improve the work environment. Developing the skills required in the labor market. Economic growth and development in various sectors. Economic reforms within the Kingdom’s Vision 2030.

Salaries of Saudis in the private sector

Considering salaries, the National Labor Observatory announced an increase in the salaries of Saudis in the private sector to reach 9.6 thousand Saudi riyals per month in 2023, indicating a 45% increase during the last five years. The Saudi Labor Law specifies the number of working hours to a maximum of 48 hours per week. With no more than eight working hours per day, and a weekly rest day on Friday, the average salary in Saudi Arabia is considered one of the highest in the Arab world, amounting to about 1,888 US dollars, which reflects the advanced economic situation of the Kingdom and the good standard of living of its residents.

2023-11-10 14:39:29
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