Council of Ministers Decision – Page 3

The Council of Ministers,

after perusal,

in its session held under the chairmanship of the Custodian of the Two Holy Mosques,

King Salman bin Abdulaziz Al-Saud,

of Royal Court File 44965 dated 17 Jumada Al-Thani 1445 [30 December 2023] regarding the Minutes of the Twenty-Fourth Meeting of the Ministerial Committee for Reforming Pension Laws on studying the rationalizing of the payroll and wage bill and related financial rights in the civil sector and studying the provisions governing employment relations between the government and its employees,

after perusal of the Civil Pension Law issued by Royal Decree D/41 dated 29 Rajab 1393 [27 August 1973],

after perusal of the Civil Service Law issued by Royal Decree D/49 dated 10 Rajab 1397 [26 June 1977],

after perusal of the Social Insurance Law issued by Royal Decree D/33 dated 3 Ramadan 1421 [29 November 2011] and the Social Insurance Law issued by Royal Decree D/273 dated 26 Dhu Al-Hijja 1445 [2 July 2024],

after perusal of the Labor Law issued by Royal Decree D/51 dated 23 Sha’ban 1426 [27 September 2005],

after perusal of the Servants Regulation issued by Civil Service Council (abolished) Decision 3 dated 20 Ramadan 1397 [3 September 1977],

after perusal of the Regulation of Payroll Item Appointees in Administrative Entities issued by Civil Service Council (abolished) Decision 141 dated 27 Jumada Al-Awwal 1399 [24 April 1979],

after perusal of Council of Ministers Decision 75 dated 29 Muharram 1440 [10 October 2018],

after perusal of the Bureau of Experts at the Council of Ministers Minutes 271 dated 17 Jumada Al-Thani 1443 [20 January 2022],

Minutes 300 dated 19 Shawwal 1444 [9 May 2023],

Memorandum 1561 dated 9 Ramadan 1442 [21 April 2021],

Memorandum 452 dated 22 Safar 1443 [29 September 2021],

Memorandum 1676 dated 26 Rajab 1443 [27 February 2022],

Memorandum 162 dated 12 Muharram 1444 [10 August 2022],

Memorandum 3953 dated 24 Dhu Al-Hijja 1444 [12 July 2023],

Memorandum 3073 dated 24 Sha’ban 1445 [5 March 2024],

Memorandum 4376 dated 27 Dhu Al-Hijja 1445 [3 July 2024],

Memorandum 1731 dated 16 Jumada Al-Awwal 1446 [18 November 2024],

Memorandum 2147 dated 17 Jumada Al-Thani 1446 [18 December 2024],

and Memorandum 2221 dated 23 Jumada Al-Thani 1446 [24 December 2024],

after perusal of the Council of Economic and Development Affairs Recommendation 10/45/RC dated 28 Dhu Al-Hijja 1445 [4 July 2024],

and after perusal of the General Committee of the Council of Ministers Recommendation 6527 dated 24 Jumada Al-Thani 1446 [25 December 2024],

hereby decides

First

1․ Government entities whose employees are subject to the civil service scales, before advertising their vacant positions, shall advertise through the Electronic System of the Ministry of Human Resources and Social Development for Internal Advertisement of Positions for a period of five days for them to be occupied by employee transfer among them. In the event that the advertising government entity is unable to have a position occupied with the appropriate qualification after advertising it through the aforementioned system, it shall advertise it according to the procedures governing the occupation of the position.

2‏. The provisions of paragraph 1 of this clause exclude servant and payroll item positions, as well as vital and critical positions included in the list referred to in paragraph 3 of this clause.

3․ The Ministry of Human Resources and Social Development and the Ministry of Finance shall prepare a list of vital and critical positions for which direct employment is permitted without advertising them through the system referred to in paragraph 1 of this clause, and shall coordinate in this regard with the concerned entities.

4․ The provisions of paragraphs 1, 2, and 3 of this clause do not apply to positions exempted under the provisions of the Civil Service Law issued by Royal Decree D/49 dated 10 Rajab 1397 [26 June 1977] and its regulations.

Second

1․ ‏The Ministry of Human Resources and Social Development and the Ministry of Finance shall carry out the following:

(a) Compiling vacant positions in government entities that have been vacant for five years or more, in coordination with the relevant entities.

(b) Making the necessary arrangements to abolish the newly created position for a government entity in the general budget of the state in the future, if it is not occupied within two years from the date of its creation.

2․ The Minister of Human Resources and Social Development and the Minister of Finance shall draw up a list of positions exempted from paragraph 1 of this article, taking into consideration vacant positions that are difficult for government entities to have occupied due to the lack of qualified personnel and supervisory positions.

3․ ‏The Ministry of Finance shall take the necessary measures to abolish vacant positions based on the compilation referred to in paragraph 1(a) of this clause, with the exception of the positions exempted in accordance with paragraph 2 of this clause.

Third

Article 11 of the Regulation of Payroll Item Appointees in Administrative Entities issued by Civil Service Council (abolished) Decision 141 dated 27 Jumada Al-Awwal 1399 [24 April 1979] is hereby amended to have the following text: “A payroll item appointee in terms of working hours, leave, official holidays, allowances—including transportation allowance—additional allowance, incentive bonus, and training and secondment must be treated as prescribed for those occupying servant positions.He must be treated in terms of compensation for overtime work in accordance with the Labor Law. Guards are exempt from overtime working hours.”

Fourth

1․ Priority must be given to meeting the needs of government entities—that have special regulations for their employees subject to the Labor Law and the Social Insurance Law—from the annual employment of support and assistance job categories in accordance with the job classification guide through civil service employees in government entities through a loan for a specific period, instead of new employment, in accordance with the provisions governing that, provided that the employee is subject to a probation period of not less than 30 days and not exceeding 90 days.

2․ Government entities shall advertise the occupation of support and assistance positions on a loan basis through the Electronic System of the Ministry of Human Resources and Social Development for Internal Job Advertisement.

3․ The Ministry of Human Resources and Social Development shall prepare a list of support and assistance job categories—referred to it in paragraphs 1 and 2 of this clause‏—and circulate it to government entities whose employees are subject to the Labor Law and the Social Insurance Law.

Fifth

1‏. A program named the “Golden Handshake” is hereby established for government entities whose employees are subject to the civil service scales, with the aim of encouraging them to leave service by resigning. The Ministry of Human Resources and Social Development and the Ministry of Finance shall—in coordination with the General Organization for Social Insurance, the Pensions Laws Reform Committee, and the Social Support and Assistance System Committee, within the limits of their competence—prepare the necessary controls, conditions, procedures, and mechanisms for the program, which must include the following:

(a) ‏Providing a financial incentive to the resigning employee and the criteria for determining it.

(b) Determining the age groups of employees targeted by the program.

(d) Approval of the entity and the employee targeted to benefit from the program.

(e) Priority must be given to holders of lower qualifications, then progressing to higher qualifications.

(f) Taking measures to abolish the position of the resigning employee, except for positions classified as supervisory.

(g) A government entity shall not employ anyone who has previously benefited from the program.

(h) An employee must not benefit from the program unless other options have been exhausted, such as: transferring him, loaning him, or rebuilding his skills to benefit from him in the most in-demand job tasks.

(i) The mechanism for the government entity to advertise the program to its employees targeted by the program, ensuring that the rights and obligations incurred by them are clarified if they agree to benefit from it.

(j) Those who meet the terms and conditions of early retirement must not benefit from the program.

The Minister of Finance and the Minister of Human Resources and Social Development shall approve the aforementioned controls, conditions, procedures, and mechanisms.

2․ The Ministry of Finance and the Ministry of Human Resources and Social Development shall annually—in coordination with the General Organization for Social Insurance, the Pensions Laws Reform Committee, and the Social Support and Assistance System Committee, within the limits of their competence—review the controls, conditions, procedures, and mechanisms referred to in paragraph 1 above, and a report must be submitted on this.

3․ Ministries, authorities, public establishments, and other entities of public legal character, which have special regulations for their employees subject to the Labor Law and the Social Insurance Law, or which have special regulations for their employees subject to the Civil Pension Law, shall create programs aimed at incentivizing their employees to leave service by resigning, in accordance with the following:

(a) If the entity is not funded from the general budget of the state and has a board of directors—or the like—then the board may establish the programs it deems appropriate to incentivize leaving service, provided that the entity calculates the additional financial costs that may arise for either the Civil Pension or Social Insurance Laws as a result of any of these programs before implementing them, in coordination with the General Organization for Social Insurance.

(b) If the entity is funded from the general budget of the state and has a board of directors—or the like—then the board may develop the programs it deems appropriate to incentivize leaving service, provided that the entity adheres to the controls, conditions, procedures, and mechanisms specified by the Minister of Finance and the Minister of Human Resources and Social Development for the Golden Handshake Program referred to in paragraph 1 of this clause when developing the program.

(c) If the entity is funded from the general budget of the state and does not have a board of directors—or the like—then the Golden Handshake Program referred to in paragraph 1 of this clause must be implemented, and the Minister of Finance and the Minister of Human Resources and Social Development shall determine the controls, conditions, procedures, and mechanisms of the program that do not apply to the entity.

Sixth

The ceiling for the costs allocated to the Golden Handshake Program—referred to in clause Fifth(1) of this decision—for the fiscal years 2025, 2026, and 2027 must be an amount not exceeding a total of 12,754,000,000 (twelve billion and seven hundred and fifty-four million) Riyals.

Seventh

The Minister of Finance is hereby authorised—if needed—to manage and add a necessary amount from the amount mentioned in clause Sixth of this decision, during the fiscal year 1446/1447 [2025]—with an amount not exceeding a total of 5,059,700,000 (five billion and fifty-nine million and seven hundred thousand) Riyals—to the general budget of the state for the fiscal year 1446/1447 [2025], and to create an item in the budget of the Ministry of Human Resources and Social Development allocated to the Golden Handshake Program, in accordance with the rules and procedures governing this, and disbursement from the amount must be limited to the purpose for which it is allocated. The Minister of Finance is also hereby granted the authority to transfer from the item allocated to the Golden Handshake Program to the budgets of other entities that will benefit from the program in accordance with the procedures followed.

Eighth

The Ministry of Human Resources and Social Development shall include the necessary amounts for the fiscal years 1447/1448 [2026] and 1448/1449 [2027] for the Golden Handshake Program from the amount referred to in clause Sixth of this decision, when debating its budget within the draft general budget of the state, and shall coordinate with the Ministry of Finance regarding the financial requirements for implementing quick wins and comprehensive strategic paths to rationalize and sustain the public sector payroll and wage bill, estimated at 22,980,600 (twenty-two million and nine hundred and eighty thousand and six hundred) Riyals for the coming years.

Ninth

Government entities whose employees are subject to civil service scales shall occupy a percentage of their positions through part-time contracts in accordance with the provisions governing this, and this percentage must be determined by agreement between the government entity and the Ministry of Human Resources and Social Development.

Salman bin Abdulaziz Al-Saud

Issued on: 30 Jumada Al-Thani 1446
Corresponding to: 1 January 2025

Published in Umm Al-Qura 5067 issued on 31 January 2025.

Arabic

The Council of Ministers, after perusal in its session held under the chairmanship of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al-Saud, of Royal Court File 60734 dated 19 Sha’ban 1445 [9 February 2024] regarding the Organizational Arrangements of Taif Development Authority,

after perusal of the aforementioned draft organizational arrangements,

after perusal of the financial and administrative regulations of regions and cities development authorities issued by Council of Ministers Decision 475 dated 7 Ramadan 1439 [22 May 2018],

after perusal of Royal Order 62332 dated 4 Shawwal 1443 [5 May 2022] and Royal Order 68175 dated 2 Dhu Al-Qa’dah 1443 [1 June 2022],

after perusal of Bureau of Experts at the Council of Ministers Memorandum 104 dated 9 Muharram 1444 [7 August 2022], Memorandum 521 dated 19 Safar 1444 [15 September 2022], Memorandum 1371 dated 3 Jumada Al-Awwal 1444 [27 November 2022], Memorandum 1761 dated 9 Jumada Al-Thani 1444 [2 January 2023], Memorandum 2701 dated 7 Ramadan 1444 [29 March 2023], Memorandum 353 dated 3 Jumada Al-Awwal 1445 [17 November 2023], Memorandum 683 dated 27 Safar 1445 [12 September 2023], Memorandum 1001 dated 25 Rabi Al-Awwal 1445 [10 October 2023], Memorandum 1721 dated 16 Jumada Al-Awwal 1445 [30 November 2023], Memorandum 2286 dated 22 Jumada Al-Thani 1445 [4 January 2024], Memorandum 3242 dated 8 Ramadan 1445 [18 March 2024], Memorandum 960 dated 16 Rabi Al-Awwal 1446 [19 September 2024], and Memorandum 2238 dated 24 Jumada Al-Thani 1446 [25 December 2024],

after perusal of the Council of Economic and Development Affairs Minutes 965/46‏/M dated 4 Jumada Al-Thani 1446 [5 December 2024],

after perusal of the Secretariat of the Council of Economic and Development Affairs Telegram 4052 dated 18 Jumada Al-Thani 1446 [19 December 2024],

and after perusal of the General Committee of the Council of Ministers Recommendation 6607 dated 25 Jumada Al-Thani 1446 [26 December 2024],

hereby decides

First

The Organizational Arrangements of Taif Development Authority are hereby approved in the form attached.

Second

The financial and administrative regulations of regions and cities development authorities ‏issued by Council of Ministers Decision 475 dated 7 Ramadan 1439 [22 May 2018] hereby apply to Taif Development Authority.

Third

The Chairman of the Board of Directors of Taif Development Authority and the Minister of Finance shall agree on all matters relating to investing the funds of the authority and establishing appropriate mechanisms that enable the authority to benefit from its revenues and the fees for the services and work it provides—without prejudice to the provisions of Royal Order Circular 55685 dated 30 Dhu Al-Qa’dah 1438 [23 August 2017]‏—to ensure the financial sustainability of the authority.

Fourth

A committee is hereby formed consisting of Makkah Region Development Authority and Taif Development Authority, to coordinate the transfer of tasks and competences relating to comprehensive planning and development of Taif Governorate and related projects from Makkah Region Development Authority to Taif Development Authority.

Fifth

The first fiscal year of Taif Development Authority begins from the date of entry into force of its organizational arrangements—referred to in clause First of this decision—and it ends at the end of the next fiscal year of the state, as an exception to the provisions of clause Tenth(2) of the arrangements.

Salman bin Abdulaziz Al-Saud

Issued on: 30 Jumada Al-Thani 1446
Corresponding to: 1 January 2025

Published in Umm Al-Qura 5068 issued on 7 February 2025.