Saudi Arabia cuts bonuses, public sector salaries

  RIYADH - Saudi Arabia will cut ministers' salaries by 20 percent and scale back financial perks for public sector employees. The cabinet statement and royal decree issued on Monday (September 26) stated that the kingdom has decided to stop and cancel some bonuses and financial benefits following a recent slump in oil prices. Last year, it recorded a budget deficit of $100 billion, prompting the country to look for new savings and ways to raise money. This is the first announcement of pay cuts for government employees, who make up about two-thirds of working Saudis. There is also a 15 percent cut for the housing and car allowances for members of the appointed Shura Council. Other than this, overtime bonuses were curbed at between a quarter and half of basic salaries. Annual leave may now no longer exceed 30 days. However, there is an exemption for troops involved in combat operations along the southern border and abroad. The exemption is part of an 18-month military intervention led by the kingdom in neighbouring Yemen. With the effects now being felt by the government, Saudi Arabia has unveiled an economic reform plan this year to lessen the kingdom's dependence on oil for government revenue. Dubbed as "Vision 2030", the plan aims to jumpstart the private sector, provide jobs for a growing population and collect more non-oil revenue.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