Saudi king orders extra pay to offset rising cost of living
RIYADH, January 6, 2018
King Salman has ordered extra pay for Saudi government workers and soldiers this year in compensation for rising cost of living after the government hiked domestic gas prices and introduced value-added tax (VAT).
Royal orders issued early Saturday restored an annual pay raise for Saudi civil servants, suspended as part of attempts to rein in a hefty public-sector wage bill, reported Bloomberg.
The monarch also ordered a SR5,000 ($1,333) bonus for soldiers fighting in the kingdom’s war in Yemen and granted Saudis working for the state an extra SR1,000 a month as a 'cost of living' allowance for a year, it stated.
Saudi citizens, including some prominent writers, took to social media and television to complain about rising prices after the introduction of a 5 per cent VAT as well as a substantial increase in electricity tariffs and gasoline prices as of January 1.
The measures were part of Crown Prince Mohammed bin Salman’s plan to raise non-oil revenue and repair public finances strained by low oil prices.
Finance Minister Mohammed Al Jadaan, appearing on state television to explain the reasons behind the price increases, struggled to keep up with repeated questions over the impact on citizens.
Calls for the return of annual pay raises for public sector workers were persistently trending on social media, reported the Bloomberg.
King Salman said he issued the orders after Prince Mohammed, his son and heir, explained that the recent measures “would increase the burden on some citizens,” according to the royal decree published by the official Saudi Press Agency.
The orders also included SR500 extra a month for retirees and social benefits recipients and 10 per cent jump in student allowances besides the government decision to bear the cost of VAT for citizens benefiting from private healthcare and education services.
These handouts will cost the state more than SR50 billion, Saud Al Qahtani, an adviser to the royal court, said on his Twitter account.
