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Minimum wage rule not for the private sector: Labor Ministry
Published in The Saudi Gazette on 21 - 07 - 2012


Saleh Al-Zahrani
Okaz/Saudi Gazette
JEDDAH – The Ministry of Labor has confirmed that the minimum wage of SR3000 applies to workers in the government sector and not the private sector.
The ministry's clarification came in response to demands by many Saudis working in the private sector with salaries below SR3000.
A decision was issued in March 2011 setting a minimum wage of SR3000 for Saudis working in the public sector to raise their living standard.
According to Labor Ministry statistics, the private sector employed 724,655 Saudis, some 10.37 percent of its total workforce, in 2010-2011. The government employs about 90 percent of the 18 million Saudis working in the country.The Kingdom also set a minimum wage of SR600-800 (US$160-213) for foreign domestic workers.
The cost of recruitment fees was set at SR15,000-17,000. Recruitment fees will be inclusive of visa costs, two-year medical insurance, a one-way ticket, residence permit fees for two years and a medical checkup.
The ministry, meanwhile, exempted individual workers, like drivers or housemaids, from the Labor Regulation. Therefore, no work permits are issued for them. Their professions can be changed and services transferred through the Passports Department.


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