Saudi Arabia reduces hiring fees for Ugandan domestic workers by Shs1.2m

Summary:

• Saudi Arabia has lowered the maximum wages for domestic workers from various countries, including a 12.6% reduction for Ugandan workers. Other affected nations include Kenya, Ethiopia, Philippines, Sri Lanka, and Bangladesh.

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The Kingdom of Saudi Arabia has recently decreased the maximum wages for domestic workers from several countries. Notably, the monthly wage for Ugandan workers has been reduced from SR9,500 (Shs9,672,645) to SR8,300 (Shs8,450,837), reflecting a 12.6% decrease. This translates to a monthly payment reduction of Shs1.2m for Ugandan employees.

According to an announcement from the Ministry of Human Resources and Social Development on Tuesday, Uganda is not the only country affected by these adjustments. Other nations impacted include Kenya, Ethiopia, Philippines, Sri Lanka, and Bangladesh.

In the list, African countries experienced double-digit percentage reductions, with Kenya facing a 17.2% cut from SR10,870 to SR9,000, and Ethiopia undergoing a 14.5% reduction from SR6,900 to SR5,900.

Among the six countries, Kenyan workers faced the most significant impact. This development coincides with efforts by the President William Ruto-led administration to attract international employers, aiming to alleviate rising unemployment locally. The reduction in remittances from Saudi Arabia, which constituted nearly two-thirds of transmittal growth in the eight months leading to August last year, is likely to affect diaspora cash inflows.

In a translated version of the statement originally posted on the ministry’s official website in Arabic, the Ministry of Human Resources and Social Development justified the decision as part of their ongoing efforts to review recruitment costs, ensuring fair prices and adapting to economic variables. The ministry emphasized its commitment to developing services, improving the labor market environment, and maintaining competitiveness.

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