A comprehensive review of faculty allowances
Informed sources have announced that several Saudi universities have begun implementing new regulations concerning faculty allowances, including the suspension of the "scarcity allowance" for certain academic disciplines, effective February. This decision stems from these disciplines' failure to meet the updated requirements related to the unified professional classification and approved Saudization quotas, reflecting developments in the Saudi labor market.
General context: Scarcity allowance and the Kingdom's Vision 2030
The “scarcity allowance” is a significant financial incentive introduced by the Saudi government to attract and retain qualified Saudi talent in fields experiencing a shortage of Saudi personnel. This policy falls within the broader framework of achieving the goals of Vision 2030, specifically the Saudization (localization) programs, which aim to increase the participation of Saudi citizens in the labor market and reduce reliance on expatriate workers in vital sectors. The allowance was designed to make academic career paths more attractive to Saudis in scientific, technical, and health-related fields that were previously understaffed.
Reasons for suspension and the mechanism used
Official documents revealed that the suspension decisions were based on urgent ministerial circulars mandating a thorough review of faculty members' financial entitlements. This review stemmed from the "alignment" process within the "Anjaz" human resources system, which required academics to update their general and specific field of study data according to the unified Saudi classification of educational levels and specializations. The systematic review of the entered data showed that some specializations no longer met the eligibility criteria, most notably the requirement that the percentage of Saudi nationals working in the specialization exceed 50%, meaning the specialization was no longer considered "rare" according to the established standards.
The importance of the decision and its expected impact
This decision carries significant implications at the local level. It is a positive indicator of the success of human development plans and investments in higher education, which have resulted in the graduation of a sufficient number of qualified Saudi nationals to meet the needs of the labor market in specializations that were previously the exclusive domain of non-Saudis. The decision also reflects a trend towards rationalizing government spending and ensuring that financial incentives are directed to sectors that still have a critical need for them. Although the decision may affect the overall income of some affected academics, it represents a necessary step to adjust financial policies and keep pace with demographic and professional changes in the Kingdom. This measure is expected to encourage universities to focus on developing new academic programs that align with the future needs of the labor market, thereby enhancing the long-term competitiveness of the national economy.
Details of allowance rates and ongoing categories
It should be noted that the regulations governing the allowance stipulate varying percentages based on the nature of the specialization, reaching 40% for engineering, medical, health, and computer science specializations, 30% for administrative and financial specializations, and 25% for languages, translation, and basic sciences. The regulations also confirm that the allowance will continue to be paid to eligible employees during summer vacation and sabbatical leaves, while it will cease in cases of secondment or assignment to work outside the university.
