Saudi Arabia cuts salaries of ministers, freezes bonuses

Saudi Arabia will cut salaries and allowances of government ministers and members of the appointed consultative body, the Shura Council, as part of the kingdom’s efforts to rein in government spending.

King Salman bin Abdulaziz issued royal decrees outlining the cuts on Monday following the Shura Council’s weekly session on Sunday.

Salaries of ministers were cut by 20 percent, while Shura Council members take a 15 percent cut, effective Oct. 2, the first day of the Islamic year.

Annual housing and car transportation allowances for the Shura members during their four-year term were cut by 15 percent each.

A freeze was also ordered on car purchases for top state officials for a year. Ministers will also pay for their government-issued fixed and mobile phones.

Saudi Arabia has trimmed public spending, shelved projects and took several economic measures to end government subsidies for services and energy as the kingdom grapples with low oil prices.

This is the first pay cut for government employees who make up the majority of the Saudi national workforce.

The king also reduced the annual leave of ministers to 36 days from 42 days while overtime bonuses have been limited to between a quarter and half of basic salaries.

The Saudi cabinet has decided not to pay annual raises to state bureaucrats or contract employees for the next one year.

It also cancelled transport and other allowances across the board for dozens of state jobs, including diplomats and for students studying abroad.

Military personnel serving along the southern borders, as part of the Saudi-led coalition's war in Yemen, were exempted from the bonus cuts.

Government agencies will have to amend their statutes to ensure full compliance with the new decree within 60 days.