Saudi Arabia unveils first public sector pay cuts

Saudi Arabia has unveiled pay cuts for government employees for the first time, as it attempts to further rein back spending at a time of low oil prices.
 
A royal decree said ministers' salaries would be reduced by 20 percent, and housing and car allowances for members of the advisory Shura Council cut by 15 percent.

Lower-ranking civil servants will see wage increases suspended, and overtime payments and annual leave capped.

About two-thirds of working Saudis are employed in the public sector. Their salaries and allowances accounted for almost half of government spending in 2015, or about 120 billion dollars, and contribute to a budget deficit of 98 billion dollars.
 
In April, Crown Prince Mohammed bin Salman unveiled a reform plan intended to reduce government's spending and lessen its dependence on oil revenue.

BBC