The News
Saudi Arabia wants to get rid of unproductive government workers, and is offering 12.7 billion riyals ($3.4 billion) in cash incentives to encourage resignations.
The kingdom’s three-year “Golden Handshake” program — which ultimately aims to make way for government workers with skills suited for digital transformation — will reduce the financial burden of civil servant wages, which account for 44% of the 2025 budget.
Riyadh also wants to shift more citizens into private sector roles, where 2.8 million Saudis are currently employed, and to support the kingdom’s target of reducing unemployment to 5% from 7.5%. While the government has not disclosed exact severance details, Asharq Al-Awsat reported that payouts could range from 24 to 60 months of salary.