In a move aimed at bringing about a qualitative shift in the government work environment and enhancing the culture of performance, the relevant authorities in the Kingdom of Saudi Arabia have adopted the regulatory controls for the “Distinguished Competencies Clause,” which replaces previous clauses, to be a fundamental pillar in the job incentive system for the civil and military sectors.
Context of the decision and its strategic objectives
This approval aligns with the objectives of the Kingdom’s Vision 2030 and the National Transformation Program, which aim to enhance performance efficiency in public sector entities and develop human capital. The shift from traditional reward systems or “secret expenditures” to clear and governed categories such as the “Distinguished Performance Fund” is part of a comprehensive strategy to promote transparency and fairness, ensuring that financial incentives are directly linked to productivity and excellence, thus fostering a positive competitive environment within government institutions.
Eligibility criteria and target groups
The new regulations established precise criteria to ensure that bonuses reach their rightful recipients, stipulating that the employee's performance evaluation for the past year must be at least "good" or its equivalent. The conditions also included the requirement that the employee have completed a minimum of 180 days of service with the entity and that their employment relationship be active at the time the payment decision is issued.
These controls include the employees of the entities who hold civil and military positions, including those appointed on the wages item, and those contracted according to the executive regulations for human resources, in addition to those seconded to the entity and those assigned to personal protection.
6 categories excluded from rewards
To ensure proper spending governance, Article 6 of the regulations specifies six categories that are not covered by these bonuses, namely:
- The employee is blind.
- The employee who is on scholarship or sent on study leave.
- An employee seconded from one entity to another.
- An employee who is absent from work for more than 90 consecutive days during the year.
- Some categories of contractors have regulations that govern special mechanisms for rewards.
- Any other category that the regulations stipulate should not be included.
Financial mechanism and disbursement procedures
The decisions stipulated the cancellation of the "dedicated confidential expenditures" item and the creation of a new item in its place, while obligating entities to allocate 3.5 million riyals in their budgets for incentive purposes. Disbursements will be made through the central financial entitlements system, "Sarf," to ensure accuracy and speed.
A specialized committee will study the requests of the entities within a maximum period of 22 working days, with the emphasis that these rewards are not considered part of the basic salary and do not affect the job status, but rather are a fixed incentive to appreciate outstanding efforts.
