In 2005 public sector employees in Saudi Arabia were handed a blanket 15% increase in wages. The gift was not dependent on pay scale or performance; with the economy booming the Saudi government reckoned its huge number of civil servants, all Nationals, deserved a slice of the action.
Two years on and inflation in the Kingdom is running at a seven-year high. Rents in August were up a record 12.1%, with food product prices up 6.6%. Puzzled by this, the government has convened a special council to look at ways of tackling inflation. The panel has just recommended a pay rise for both private and public sector workers.
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