HRSD Ministry introduces Golden Handshake program for gov’t employees

Logo of Ministry of Human Resources and Social Development (HRSD)

The Ministry of Human Resources and Social Development (HRSD) has introduced the "Golden Handshake" program and internal announcements for vacant government positions through the ministry's e-system. The ministry stated that the maximum allocated budget for the program is SAR 12.75 billion from 2025 to 2027.

Under the program, HRSD and the Ministry of Finance will coordinate with the General Organization for Social Insurance, the Pension System Reform Committee, and the Social Support and Subsidies System Committee to set the regulations, conditions, procedures, and mechanisms required for the program.

The program includes providing a financial incentive for resigned employees, setting criteria for determining the incentive amount, identifying the age groups targeted by the program, and the required years of service for eligible employees. Participation in the program requires the approval of both the relevant entity and the targeted employee.

Priority will be given to employees with lower qualifications, gradually extending to those with higher qualifications. Additionally, the resigned employee's position will be canceled, except for supervisory roles. Furthermore, no government entity may rehire individuals who have previously benefited from the program.

The conditions also stipulate that an employee may only benefit from the program after exhausting other options, such as transfer, secondment, or skill redevelopment to be reassigned to higher-demand job functions. Additionally, employees who meet the criteria for early retirement are not eligible for the program.

The Minister of Finance and the HRSD Minister will approve the specified regulations, procedures, and mechanisms, and will periodically review them and submit a report accordingly.

Government ministries, authorities, public institutions, and other entities are required to develop programs that encourage employees to voluntarily leave service through resignation. If an entity is not funded by the state’s budget and has a board of directors, it will be allocated SAR 5.06 billion to develop programs aimed at incentivizing voluntary retirement. Additionally, an item will be set in the HRSD Ministry’s budget for any additional costs that may arise under the Civil Retirement System or the Social Insurance and Development System, specifically for the Golden Handshake program. Spending from this budget will be strictly limited to the set purpose.

For entities that are funded by the state’s budget and do not have a board of directors or an equivalent governing body, the program will be implemented in coordination with the Ministry of Finance. The Minister of Finance, along with the relevant authorities, will outline a comprehensive strategy to rationalize and sustain the public sector payroll, estimated at SAR 22.9 million for the coming years. The total cost allocated for the program for the fiscal years 2025, 2026, and 2027 will not exceed SAR 12.8 billion.

Moreover, both ministries will identify vacant positions in government entities that have remained unfilled for five years or more and establish the necessary arrangements to eliminate these positions from the state’s general budget in the future.