Saudi Arabia’s Human Resources and Social Development Ministry has announced employers cannot reduce the pay of their employees without reducing their working hours as well. The reduction of hours should be proportionate to the reduction in pay regardless of the type of work. Wages can be reduced by up to 40%. Article 41 of Saudi Arabia Cabinet Decision No. 219/1426 (Saudi Arabia Royal Decree No. M51/1426) states there are two conditions for reducing pay. The enterprise should have suffered damage because of Coronavirus and the reduction in pay should match the reduction in working hours. The reduction in working hours should be taken from the actual hours worked in line with Article 98 of Saudi Arabia Cabinet Decision No. 219/1426 (Saudi Arabia Royal Decree No. M51/1426). Full story
