Minimum Wage in Saudi Arabia

What is the Minimum Wage in Saudi Arabia?

The minimum wage in Saudi Arabia is SAR 3,000 per month, or $800. This amount is higher than that of Malaysia, and is still lower than the average salary of a Factory Worker. Here’s what you should know about the minimum wage in Saudi Arabia. You will also learn about the social security system and the average salary of Factory Workers in Saudi Arabia. Let’s take a look. What is the minimum wage in Saudi Arabia?

Saudi Arabia has a minimum wage of $800 per month for a Factory Worker

In October 2012, the Saudi government introduced a minimum wage of $800 a month for factory workers. While the new law didn’t provide any further guidance, it did close one loophole. Workers earning less than this amount would not qualify for Nitaqat privileges. In addition, they wouldn’t be counted towards a company’s quota of citizen workers.

A World Bank Group researcher focuses on labor markets in Arab countries. Before joining the World Bank Group, Meshal Alkhowaiter was a research assistant and policy analyst in the Saudi Ministry of Labor. He has extensive experience in the Saudi labor market, having worked as a policy analyst with the Saudi Ministry of Labor for three years. In his research, Alkhowaiter assumes that Saudi Arabia has minimum wages for foreign laborers. However, he estimates that these foreign workers make between $200 and $400 a month.

The new law has largely affected low-income expats from east and south Asia. According to the Saudi government, these expats account for 87% of the private sector’s workforce. It is also important to note that minimum wage standards in the Kingdom depend on expat nationality. This is because the government negotiates with specific countries to set minimum wages. These negotiations, combined with the low cost of living in the Kingdom, drove the demand for Saudi labour force to the right.

While remittance payments from Saudi Arabia were very attractive during the oil boom, they subsequently decreased in the mid-1980s. To avoid such situations, expats should research their labor rights in the country. Besides, the country is known to be a blend of tradition and modernity. As such, it’s important to learn as much as you can about the country’s labor laws and pay standards before deciding to move to Saudi Arabia.

In 2012, the Saudi government took steps to reform its labor laws. The Ministry of Labor, in conjunction with the Ministry of Interior, hired 1,000 inspectors. While they focused on reforming the employment laws, they also raised wages for both foreign and local workers, increasing their demand. Saudi Arabia also implemented more stringent labor laws to prevent illegal hiring, reducing the availability of skilled workers and increasing the wages for foreign workers.

The new minimum wage policy may be a major setback for some companies, particularly those that rely on low-skilled labor. Some sectors may become unattractive to Saudi workers and may even decline in demand. If this happens, the minimum wage policy can have a negative impact on the country’s labour market, affecting the economy’s productivity and average wages.

Regardless of the reasons, the fact remains that the cost of foreign labor in Saudi Arabia is so high that domestic workers are often outbid by foreign candidates for private sector jobs. The country should work toward equalizing labor mobility between nationals and foreigners, introduce a universal minimum wage, and make foreign workers pay GOSI contributions. These measures will increase the level of competition for jobs.

It is higher than Malaysia’s minimum wage

While most Malaysians may consider the new minimum wage a welcome step, many of them have reservations. The Malaysian Trade Union Congress views the RM50 increase as too low and “beggarly.” The minimum wage is RM70 per day, or RM1,050 per month. However, some migrant workers in Malaysia’s construction industry are not satisfied with the new wage. They say they cannot make ends meet on RM70 per day.

The Department of Statistics’ latest Salaries and Wages Report showed that Malaysia’s manufacturing sector employed 1,198,300 workers in 2016 and their average monthly wage was RM2,129. An additional RM500 in basic pay would add RM599 million to the manufacturing sector’s monthly revenue and RM6.8 billion to the national economy, according to the Economic Report 2017/2018. The report defined a living wage as an income level that ensures the individual can maintain a reasonable standard of living, without undergoing severe financial hardships.

The increase in the minimum wage must account for the uneven recovery of the different industries in the country. It could result in job market distortion and force low-income workers to look for higher paying jobs. Considering the external risks, the increase may actually weaken Malaysia’s economic recovery. A higher minimum wage may also result in an increased cost of living for many Malaysians. This will need to be discussed with employers and employees, as well as civil societies.

The minimum wage of RM1,500 per month has become a reality in Malaysia. The Malaysian Minimum Wages Order has been gazetted by the government, which will be effective from 1 May 2022. However, employers with less than five employees are exempted from this increase. Moreover, the high basic wage can affect overtime, increments, and bonus payments. Furthermore, it can result in spiralling costs of doing business.

In the upcoming general election, the minimum wage of RM1,500 is expected to be the most significant issue. The increase will benefit low-wage workers in ‘Malay belt’ states and East Malaysia. These states are home to a significant proportion of Bumiputra voters and governed by UMNO/Barisan Nasional. There are also many other factors that must be taken into consideration.

The hike in Malaysia’s minimum wage will have a limited effect on the ASEAN region. It is unlikely to change the dynamic of the region, despite the fact that Malaysia is well above other countries. However, the new minimum wage in Malaysia is still higher than the minimum wage in other parts of the ASEAN region. For example, the automotive sector will see greater growth in the manufacturing sector, while other sectors may benefit from the extra money in consumers’ pockets. Meanwhile, Malaysia’s population of nearly 30 million people is beginning to attract the attention of consumer goods producers. Household consumption in the country has doubled in the past decade, reaching a record high in the third quarter of 2015.

As of May 2018, the Malaysian minimum wage will rise by a massive 36 per cent, bringing the monthly wage for low-wage workers to RM1,500. The new minimum wage replaces the two-tiered wage floor. Previously, the minimum wage was RM980 per month for a household. But this will increase to RM1,200 per month by 2022. In the meantime, the cost of living in the country will be even higher.

It is lower than Saudi Arabia’s average salary range for a Factory Worker

The median annual salary for a Factory Worker in Saudi Arabia is SAR 63,812, or SAR 31 per hour. This salary range is well below the averages of other countries, but is still significantly higher than the salary ranges for other job titles. Factory and Manufacturing salaries can vary a great deal between job titles. Below are the salaries and benefits for various Factory Worker career options.

The government of Saudi Arabia relies heavily on foreign workers, accounting for about three-quarters of the workforce. These workers are largely unskilled and semi-skilled, coming mostly from South Asia and the Middle East. In recent years, however, Americans have filled many of the more senior positions in the Kingdom. Saudi Arabian workers are also subject to limited legal rights. Women in Saudi Arabia have no right to organize or strike.

While many countries are limiting the number of expatriates in their workforce, the Saudi minimum wage is well below the average wage range for a Factory Worker in Saudi Arabia. Saudi workers are highly sought after because their wages are competitive. The higher minimum wage, coupled with the government’s favourable Nataqat policy, has pushed the demand for the Saudi labour force to the right.

Minimum wage policies are widely implemented in other countries to raise the standard of living of their workforce. These laws also help stabilize the labour market. While minimum wages increase the wages of workers, they also cause productivity to decline. Although minimum wages increase the living standards of workers, they are still too low compared to average salaries. A minimum wage policy in Saudi Arabia is still more appropriate than none at all.

Minimum wages in Saudi Arabia are governed by laws – there is no general minimum wage. However, the minimum wage is SAR 4,000. The average salary for a Factory Worker in Saudi Arabia is approximately SAR 6,728. If you are a Saudi citizen, the minimum wage may not be higher than the national salary. Saudi Arabians in the private sector, however, earn an average of SAR 4,800 a month.

The wage range for unskilled workers is EUR 752, while that of skilled workers is EUR1,442. In addition, Saudi Arabia’s minimum wage varies by industry. Clothing workers earn more than textile workers, and Saudi government regulations require employers to hire fewer foreigners. Despite the restrictions, however, young Saudi citizens often refused to engage in menial jobs. Saudi women have had limited employment outside the home and are often forced to stay in their homes. Most of these women are domestic servants.

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