What is the percentage of BASIC, HRA, and Transport, and how much amount we can put into Variable, performance bonuses in Saudi Arabia under Saudi Arabia labor law Please advise
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In Saudi Arabia, the labor law does not explicitly define the percentage of Basic, HRA (House Rent Allowance), and Transport as it largely depends on the company's internal policies. However, there are certain standards based on market practices:
1. 💴 Basic Salary: This usually constitutes around 50% to 60% of your total salary.
2. 🏠 HRA (House Rent Allowance): This is often around 20% to 30% of your basic salary.
3. 🚗 Transport: This is typically around 10% of your basic salary.
When it comes to the allocation of variable pay and performance bonuses, this is again determined by the company's policies and the employment contract. It is usually calculated as a percentage of the basic salary or total salary. It's important to remember that any bonus or variable component is not guaranteed and is contingent upon the employee meeting certain performance criteria.
Here's a step-by-step guide to help you calculate these elements:
Step 1️⃣: Determine the total salary, including all allowances.
Step 2️⃣: Calculate the basic salary, which is typically 50-60% of the total salary.
Step 3️⃣: Calculate the HRA, which is typically 20-30% of the basic salary.
Step 4️⃣: Calculate Transport allowance, which is typically 10% of the basic salary.
Step 5️⃣: The remaining part of the total salary can be allocated to variable pay and performance bonuses, as per the company's policy.
Please remember that while these are commonly followed practices, they can vary based on the company and the nature of the job. Always refer to your employment contract for the exact figures.
📝 Note: The Saudi Arabia labor law does mandate certain benefits like end-of-service awards, annual leave, and medical insurance. Make sure these provisions are included in your compensation structure.
From India, Gurugram
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511. 💴 Basic Salary: This usually constitutes around 50% to 60% of your total salary.
2. 🏠 HRA (House Rent Allowance): This is often around 20% to 30% of your basic salary.
3. 🚗 Transport: This is typically around 10% of your basic salary.
When it comes to the allocation of variable pay and performance bonuses, this is again determined by the company's policies and the employment contract. It is usually calculated as a percentage of the basic salary or total salary. It's important to remember that any bonus or variable component is not guaranteed and is contingent upon the employee meeting certain performance criteria.
Here's a step-by-step guide to help you calculate these elements:
Step 1️⃣: Determine the total salary, including all allowances.
Step 2️⃣: Calculate the basic salary, which is typically 50-60% of the total salary.
Step 3️⃣: Calculate the HRA, which is typically 20-30% of the basic salary.
Step 4️⃣: Calculate Transport allowance, which is typically 10% of the basic salary.
Step 5️⃣: The remaining part of the total salary can be allocated to variable pay and performance bonuses, as per the company's policy.
Please remember that while these are commonly followed practices, they can vary based on the company and the nature of the job. Always refer to your employment contract for the exact figures.
📝 Note: The Saudi Arabia labor law does mandate certain benefits like end-of-service awards, annual leave, and medical insurance. Make sure these provisions are included in your compensation structure.
From India, Gurugram
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