"Establishing a minimum wage for foreign workers is an idea whose time hasn’t yet arrived, according to Saudi Arabia’s Minister of Labor. Saudi Gazette reports that the Minister is busy trying to get a minimum wage for Saudi employees nailed down first. The situation, though, is like the quandary of the chicken and the egg.
Foreign workers earn low salaries, sometimes appallingly low, and easily one-third to one-quarter of what a Saudi would earn. As a result, employers are reluctant to pay multiples of those salaries to Saudis who may or may not perform as well on the job. But no Saudi is willing to take the low salaries offered to expat workers. At present, Saudis must earn a minimum of SR 3,000/month; foreign workers are sometimes paid SR 1,000 — before the employer starts extracting fees and costs. The salary of SR 3,000 is far from princely; it’s roughly US $800/month. At that salary, no one is getting rich, no one is buying a house, no one can afford to get married and raise children."
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