Saudi King announces salary hikes for government employees

Riyadh - The country will bear the impact of newly introduced VAT by absorbing it for citizens using private healthcare and education

Saudi Arabia announced on Saturday it had boosted stipends and benefits for citizens to cushion the impact of economic reforms, including the kingdom's first ever taxes after an oil price slump.
Most working Saudi Arabians are employed by the state and, like nationals in other Gulf countries, have long benefited from a generous welfare system.
After the 2014 oil market crash, Saudi Arabia as well as the neighbouring UAE announced a five per cent value-added tax on most goods and services which took effect at the start of this year.
In a move that aims to "soften the impact of economic reforms on Saudi households," the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, issued a royal decree late on Friday ordering a 1,000 riyal monthly living allowance for military personnel and public servants for a period of one year.
Student stipends will be increased by 10 per cent, an official statement said. Under Friday's royal decree, troops serving at the border with Yemen, where Saudi Arabia is allied with the government in a war against Houthi rebels, will receive a bonus of 5,000 riyals.

• Saudi Arabia