Saudi King Orders Salary Increases for Employees and Retirees

King Salman of Saudi Arabia has ordered salary increases for employees, military personnel, and retirees in the country to offset the rise in fuel prices and taxes. Simultaneously, he granted a 'bonus' to military personnel involved in the Yemen war. This salary increase is for one year, and the 'bonus' is a one-time payment. According to Reuters, these directives aim to mitigate the effects of recent 'economic reforms'; Saudi Arabia has recently nearly doubled fuel prices and imposed taxes on water, electricity, and other services. Based on King Salman's order on Friday, January 5, the salaries of regular employees and military personnel will increase by 1,000 Saudi riyals, equivalent to about $275, as compensation for rising costs and basic living needs. Government employees will also receive an annual 'bonus'. According to the 'royal decree', government retirees will receive an additional salary of 5,000 Saudi riyals per month to cover living expenses. King Salman also stipulated that the 'bonus' for military personnel 'stationed at the southern borders' will be 5,000 Saudi riyals. The 'military personnel stationed at the southern borders' refers to Saudi military forces involved in the Arab coalition in the Yemen war. Additionally, families under social security will receive an extra 500 Saudi riyals each month; male and female students will receive 10% more assistance for one year; the government will cover taxes on private medical services and non-profit education, and the tax on the first home purchase for each family will be paid by the government, provided the home price does not exceed 850,000 Saudi riyals. According to a statement from the Saudi court on Friday, the decision to implement these benefits starting from the beginning of the new calendar year is the result of the 'efforts' of Crown Prince Mohammed bin Salman. Saudi Arabia has recently imposed taxes on services and goods and raised fuel prices to reduce its approximately 90% dependence on oil sales; the Crown Prince is credited as the initiator of these 'economic reforms'. Global institutions have also urged Saudi Arabia to diversify its funding sources beyond oil to continue benefiting from cooperation with these institutions. Arab media, mostly from Saudi opponents, have recently reported that the increase in fuel prices and taxes has met with public dissatisfaction, causing concern within the Saudi court about potential citizen protests. In recent days, as Iran witnessed protest demonstrations, some regional Arab media claimed that Saudi Arabia is also worried about the repetition of such protests in its cities following the recent price increases. Some Saudis on social media compared their economic situation with the relatively high prosperity of residents in countries like the United Arab Emirates. At the same time, some Saudi religious forces stated that imposing taxes on goods and services was previously considered 'haram'. Two months ago, Saudi Arabia's action of arresting dozens of princes and wealthy individuals was interpreted by some opponents as an attempt to increase revenue and cover the heavy costs of involvement in the Yemen war by forcing these detained figures to pay part of their wealth in exchange for their freedom. However, Saudi Arabia insists that these individuals were arrested in a fair process and are suspected of corruption. Meanwhile, the Saudi newspaper 'Sabq' reported on Saturday, January 6, that eleven princes who protested against the recent court order to cancel financial assistance for their water and electricity taxes at the royal palace in Riyadh and defied the order to leave the court were arrested by the royal guard and will be tried.