Salaries in Saudi Arabia Set to Rise This Year

In a recent report, it has been revealed that salaries in Saudi Arabia are anticipated to witness a noteworthy 6% average increase in 2024. This positive outlook is aligned with the Kingdom’s strategic efforts to diversify its economy away from hydrocarbons, as encapsulated in its Vision 2030 initiative.

Renowned recruitment specialist, Cooper Fitch, underscores the continued emphasis on development in Saudi Arabia. Mega projects such as the $500 billion Neom city, the Red Sea Project, and AlUla have significantly bolstered the demand for skilled professionals, contributing to the projected salary rise.

Over the past year, the private sector saw the creation of 1.12 million jobs, a pivotal component of the comprehensive plan to develop projects exceeding USD 1 trillion, as highlighted in the Ministry of Finance’s 2024 budget statement.

Empowering Women in the Workforce:

The report also sheds light on the steady increase in women’s participation rates in the labor market, reaching 35% in the second quarter of 2023, surpassing the Vision 2030 goal of 30%. As women continue to enter the workforce, a sustained hiring boom is anticipated, emphasizing the vital role of women in contributing to the workforce.

Innovative Visa Schemes:

Saudi Arabia has introduced five new visa categories targeting skilled professionals and investors, aiming to create employment opportunities and enhance knowledge transfer. The categories include special talent, gifted, investor, entrepreneur, and real estate owner residency visas.

Factors Influencing Salary Increases:

The study underscores that salary increases in 2024 will be contingent on factors such as sector dynamics, employee productivity, and individual company salary budgets. Notably, over half of surveyed companies express their intent to raise salaries, reflecting positive economic indicators.

Job Market Dynamics:

Survey results reveal that around 60% of companies plan to expand their workforce in 2024, while 29% anticipate a reduction. The realization of Vision 2030, coupled with the Kingdom’s gigaprojects and the emergence of new industries like electric vehicles, has positively influenced recruitment and remuneration.

Annual Bonuses and Employee Benefits:

A significant portion, 78%, of surveyed companies plan to issue annual bonuses based on their 2023 financial performance. Companies planning to pay bonuses are considering various durations, with 24% opting for a one-month boost, 21% for two months, and 18% planning a three-month bonus. Notably, companies in construction and consulting are more likely to forego bonuses.

Employee Benefits Landscape:

Beyond mandatory benefits like health insurance, paid leave, and end-of-service gratuity, there is a growing focus on well-being, workplace savings, education, child education allowances, and flexibility. A survey by Swiss insurer Zurich International Life emphasizes this evolving landscape.

In-Demand Job Sectors:

Roles such as patient care technicians, information system analysts, building information modeling coordinators, health and safety managers, and human resources operations specialists are identified as the fastest-growing jobs in Saudi Arabia. There is also substantial growth in real estate consultancy services, according to recruitment specialist Michael Page.

This comprehensive overview provides insights into the multifaceted dynamics shaping Saudi Arabia’s job market, emphasizing economic transformation, gender inclusion, and evolving employee benefits expectations.