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FINANCIAL NEWS
Salary gap between Saudis and expats growing: Study
08 Sep 2012
(MENAFN) A new study conducted by Hay Group found that salary gap between Saudi nationals and expats has widened since the government’s launch of Nitaqat initiative, which aims to involve more Saudis working in the private sector, Arabian Business reported.
Hay Group’s 2012 Saudi Arabia Compensation and Benefits study said that the average salary increase is holding steady tracking just below inflation.
A total of 340,000 employees from 356 companies in 17 industry sectors were included in this year’s study which reported that salaries in Saudi Arabia rose by 3.8 percent over the last 12 months.
Saudi nationals now receive 17 percent more than the market average while non-nationals now receive four percent below the market average, according to the figures.
Hay Group’s Wendell D’Cunha attributed the widening gap to a combination of the efforts of Nitaqat and a talent shortage in certain functions and industries.
He also expected the gap between salaries of nationals and expats was likely to continue to grow.
The report said that Nitaqat is succeeding in encouraging the recruitment of nationals into the private sector, with Saudi new joiners being paid a 19 percent premium.
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