Saudi Arabia Reverses Salary Cuts After Succession Shakeup
- Cutbacks had been designed to help balance Saudi budget
- Austerity measures had deepened oil-related economic slowdown
Saudi Arabia's Shake-Up
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Saudi Arabia’s King Salman has reversed a decision to cut salaries and benefits for public sector employees, a move that’s likely to fend off any social discontent but could complicate his new successor’s plan to repair the kingdom’s finances.
In a series of announcements that also promoted his son, Mohammed Bin Salman, to heir to the throne, the Saudi ruler restored all allowances and bonuses canceled or suspended last year, the official Saudi Press Agency reported on Wednesday. Payments to the civil servants and military personnel will be backdated to September, when the austerity measures were first announced.