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Al-Ahed Telegram

18 Months on War against Yemen: Saudi Arabia Slashes Ministers’ Pay, Cuts Public Sector Bonuses

18 Months on War against Yemen: Saudi Arabia Slashes Ministers’ Pay, Cuts Public Sector Bonuses
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As Saudi Arabia sinks in its financial crisis amid its continuous was on Yemen and at a time of low oil prices, the kingdom decided to cut its ministers' salaries by 20 percent and scale back financial perks for public sector employees in one of the most drastic measures.

18 Months on War against Yemen: Saudi Arabia Slashes Ministers’ Pay, Cuts Public Sector Bonuses

The measures, disclosed in a Cabinet statement and royal decree broadcast on state-run Ekhbariya TV Monday, constitute the first pay cuts for government employees, who make up
about two-thirds of working Saudis.

"The Cabinet has decided to stop and cancel some bonuses and financial benefits," read a line of text on Ekhbariya, as a minister read to assembled ministers and royals, including King Salman, a list of cuts in various grades in the civil service.

The plunge in oil prices since mid-2014 has pushed energy-rich Gulf Arab states to rein in lavish public spending.

Saudi Arabia racked up a record budget deficit of nearly $100 billion last year, forcing it to find new savings and ways to raise money.

A royal decree read directly after the broadcast on the TV channel announced the cut in ministers' pay. Housing and car allowances for members of the appointed Shura Council will be cut by 15 percent.

Overtime bonuses were curbed at between 25 and 50 percent of basic salaries, while annual leave may no longer exceed 30 days.

Saudi Arabia unveiled a reform plan this year to wean the economy off its addiction to oil, on which the government depends for the overwhelming share of its revenues.

Source: News Agencies, Edited by website team

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