In a world that is developing at enormous speed, the integrity and balance of salaries in any economy is one of the most important factors that guarantee the stability of society and stimulate economic growth. In this context, the Kingdom of Saudi Arabia stands out as an inspiring and impressive example of implementing a salary scale that reflects an ambitious and pioneering vision. Over the past few years, it has witnessed a huge transformation in the Kingdom’s salary system, as an advanced model was adopted that reflects balance and justice between the various categories of employees and workers in the public sector. By studying the new salary scale in the Kingdom of Saudi Arabia, you will discover that not only have the basic salaries of workers been improved, but financial incentives and bonuses have also been provided that encourage productivity and innovation. This new approach not only reflects the Saudi government’s ambitious vision of achieving sustainable development but also enhances employee satisfaction and the desire to achieve excellence in the performance of their duties.
When are salaries paid in the Kingdom?
Before 2018, there were different dates for salary disbursement in Saudi Arabia, usually in the middle of the Hijri month. However, the Saudi Ministry of Finance explained that directives were issued by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, in January 2018 to unify the dates of salary disbursement for all workers in the state.
According to these directives, salaries are now paid on the twenty-seventh day of every month according to the Gregorian calendar, and this includes all workers in the government sector and the private sector that adhere to these directives.
In addition, utility bills have been scheduled to fall within the week following the disbursement of salaries. This means that bills related to services, such as electricity, water, and communications, usually arrive in the period following the disbursement of salaries.
If the salary is due on Friday, when will it be paid?
For salaries that are paid on Friday, they are usually paid a day or two before Friday, on Wednesday or Thursday, to enable employees to benefit from their salaries before Friday, and they can plan their personal or family expenses during the weekend.
As for the date of disbursement of salaries in the Kingdom of Saudi Arabia, it depends on the policies of each employer or the entity responsible for disbursing salaries, and in general, the most common day for disbursing salaries is Thursday in Saudi Arabia.
What happens if there is an official holiday?
If there is an official holiday that falls on a Thursday, some companies or entities may advance the salary disbursement date to the previous day, which is Wednesday, for example, in order to ensure that salaries are available to employees before the start of the official holiday.
Salary scale in the Kingdom
The employee salary scale was launched in the Kingdom of Saudi Arabia by the Ministry of Finance. This is the basic scale that determines the level of salaries and the advancement of employees in the career and financial pyramids. It aims to motivate workers, enhance efficiency and productivity in the government sector, and is one of the important factors for attracting qualified and talented personnel.
The salary scale in the Kingdom consists of several ranks related to the employee’s career level, as salaries increase as the employee advances in the career pyramid. The following are the most prominent points in the salary scale and the numerical range for each rank:
- First rank: Salaries in this rank range between 3,000 and 4,890 Saudi riyals.
- Second: Salaries for this rank range between 3,430 and 5,740 riyals.
- Third rank: Salaries in this rank range between 3,945 and 6,605 Saudi riyals.
- Fourth: Salaries in this rank range between 5,240 and 8,950 Saudi riyals.
It should be noted that the employee’s rank is determined based on several factors, such as academic qualifications, practical experience, level of performance, and discipline at work. The higher the employee advances in the career hierarchy and the better his performance, the greater his chance of obtaining a higher salary.
Salary scale for new employees
The Ministry of Finance decided to raise the minimum salary to 4,700 Saudi riyals and the maximum to 18,000 riyals. Therefore, this means that there is a new basic rate of wage in the government and private sectors. It is worth noting that the new salary scale is divided into three main levels, namely:
- The first level is for employees whose experience does not exceed one year, and allowances of 135 riyals are paid.
- Second: For employees with two years of experience and less, allowances of 165 riyals are paid.
- The third level is for employees with experience of more than two years and up to four years, and allowances of 300 riyals are paid.
These changes in the salary scale in the Kingdom of Saudi Arabia aim to attract and retain talent in the government and private sectors, in addition to motivating new employees to join the Saudi market.
How to calculate employee salaries in Saudi Arabia for the year 2024
In the Kingdom of Saudi Arabia, the Ministry of Human Resources plays a pivotal role in organizing and managing the salary system for employees. The Ministry has provided an electronic service through its official website that allows employees to calculate the monthly salary amount according to the approved salary scale in the Kingdom. To calculate the monthly salary, the employee must follow the following steps:
- Log in to the Ministry of Human Resources website.
- Go to the “New Salary Scale” section.
- Determine the rank to which the employee belongs.
- Enter the employee’s job grade.
- Writing an allowance for the nature of work for the employee.
- Specify any other official allowances, such as remote allowance, danger, or damage.
- Enter the employee’s necessary personal data.
- Click on the “Calculate Salary” option.
- After following these steps, an approximate value of the monthly salary to which the employee is entitled will be displayed according to the standards of the salary scale approved in the Kingdom.
The importance of using the monthly salary calculation program for employees from Qoyod
Human resources management is a vital process for any facility, and the process of calculating salaries in the Kingdom is one of the most important tasks entrusted to it. So here is the importance of using the monthly salary calculation program from Qoyod for employees and how this can lead to improving the efficiency of human resources operations. This can be summarized as follows:
Improving the efficiency of human resources management
Using the Qoyod monthly salary calculation program contributes to improving the efficiency of human resources management by reducing the time and effort required to enter data and calculate salaries manually. This enables specialized employees to focus on more strategic, value-added tasks.
Reducing the possibility of errors
The program reduces the possibility of human errors in the process of calculating salaries in the Kingdom, which contributes to increasing the accuracy of financial data. This is extremely important. To ensure regulatory compliance and accurate financial reporting.
Ensure compliance with local legislation.
On the other hand, the software helps ensure compliance with local and international legislation and laws related to salary calculations, taxes, and social insurance, which is crucial to avoiding legal risks and penalties.
Possibility of creating detailed reports
Moreover, the program provides the ability to create detailed reports and analyze the cost of salaries and their distribution. It is worth noting that this analytical tool helps the organization make better strategic decisions, such as planning the budget and determining rewards and incentives.
Saving time and effort
Finally, using the monthly salary calculation program from Qoyod contributes to saving time and costs associated with the manual salary calculation process, and thanks to advanced automatic technologies, the program contributes to enhancing trust between the company and employees by providing high accuracy in salaries and compliance with laws.
How to set up a salary and wages account from Qoyod
There are many important steps involved in preparing and calculating salaries and wages from Qoyod, which are as follows:
- Employee data must be entered into the system, which includes personal, job, and salary information.
- After that, the financial terms for each employee are determined, such as basic pay, allowances, bonuses, and deductions.
- Then you specify the dates and time periods for paying salaries, whether monthly, biweekly, or otherwise.
- Based on the entered data and financial items, it generates payroll according to the specified schedule.
- After that, the accuracy of the calculated salaries is checked, matched with employee records and data, and errors in the calculations are corrected if necessary.
- It also issues financial reports related to salaries, such as payroll and tax reports, for internal use and for submission to government agencies when needed.
- Finally, employee data is updated periodically, and any changes in salaries or tax laws are followed up to ensure compliance and accuracy in calculations.
Conclusion
As the Kingdom of Saudi Arabia continues to develop its labor market and financial policies, reforming the Kingdom’s salary system will have a profound impact on the national economy and workforce, as reducing salary gaps and achieving equity may lead to increased productivity and job satisfaction and provide new job opportunities for Saudi citizens. So, ultimately, policymakers must combine economic and social incentives to encourage sustainable development. In parallel with the efforts of the private and public sectors, the salary scale can be a powerful tool for achieving prosperity and stability in the Kingdom, and do not forget that this is the challenge facing decision-makers in the next stage.
Do not forget to use the Qoyod program to calculate salaries for employees in a jiffy. It is worth noting that the program also offers all its clients: electronic invoice systems as well as point-of-sale systems, stores, customers, etc., which makes it the best accounting program with reasonable prices in exchange for excellent service.
After knowing what the salary scale is in the Kingdom, try Qoyod now for free for 14 days, and you will not regret it. It is an accounting program that saves you time and effort.
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