JEDDAH — Employees in the private sector have called for payment of their salaries on the basis of Hijri calendar as it would help them receive an additional salary of 11 days annually and add 15 months to their retirement age after 40 years of service. Economists have emphasized that the distribution of salary on the basis of Gregorian calendar would not be in the interest of employees. "Companies will benefit by paying salaries at the end of Gregorian calendar by saving one and a quarter salary with all other allowances while paying end of service benefits," an economist told Okaz/Saudi Gazette. Financial analyst Hussein Al-Raqeeb said employees who receive their salaries on the basis of the Gregorian calendar lose 11-days salary every year, one and a quarter salary from end of service benefits and a year and three months from their retirement age. "Company employees should be compensated for this big loss and their retirement age must be calculated on the basis of Hijri calendar," Al-Raqeeb said. He said many employees who receive their wages on the basis of the Gregorian calendar are forced to take loan to meet expenses for Ramadan when the holy month comes before the salary day. "If a company has 2,000 employees with an average staff salary of SR5,000, it can save SR3.67 million annually," he said. Companies pay salary at the end of the month or the first day of the new month in order to ensure that employees who are leaving service work full month before receiving their wages. Dr. Salim Baujajah, an economist, said paying salary on the basis of Gregorian calendar was essential as the whole financial system follows the same calendar, especially in the banking sector. "It's also an international system and foreign workers can deal with it easily," he told Okaz/Saudi Gazette. "This is significant when Saudi Arabia hosts more than 10 million workers from different countries. It also goes in line with the paying system between companies and banks." He said the system also helps monitor monetary flow. However, he pointed out the system would incur a salary loss of 11 days for employees every year. Talat Hafiz, secretary general of the media and banking awareness committee at Saudi banks, said banks distribute salaries of employees on the basis of agreements they have signed with companies. "The agreement includes the date when the companies would deposit salaries in the accounts of employees," Hafiz said, adding that government departments and agencies pay their salary on the 25th day of the Hijri month. With regard to public and private companies, the payment of salaries would be made as per the desire of those companies and agencies. "Banks have no role in determining the pay date."
