$2.7mn aid to raise salaries of Saudis in private firms

The Human Resources Development Fund (HADAF) will extend financial support of up to $2.7mn (10 million Saudi riyals) to private firms that raise salaries of their Saudi employees. The board of directors of HADAF approved this decision as part of its ongoing efforts to boost Saudization and encourage Saudis to stay in their jobs.

The firms will become eligible for financial support only six months after disbursement of increased salaries among Saudi employees, according to HADAF sources.

The maximum payment will be $2.7mn (SR10 million) or 50 percent of the total salary outlay for the last 12 months, whichever is less. The fund will calculate the salary on the basis of details furnished by the General Organization for Social Insurance (GOSI). HADAF has set a maximum salary ceiling of $4,000 (SR15,000).

The sources said these firms would be entitled to financial support for a second time after six months if GOSI records showed the employees worked with them for a full year.