jordan pulse -
Some people confuse the annual increase in security retirement salaries with linking the maximum wage subject to deduction and the maximum limit of unemployment allowance to inflation.
He explained the issue as follows:
First: With regard to the annual increase in retirement salaries and sickness salaries: it is linked either to the inflation rate or to the annual growth rate of average wages for the previous year, whichever is lower... That is, the lower rate is taken, and if inflation is lower, it is adopted for the purposes of linking retirement salaries to its percentage, even if it is The growth in wages is the lowest, so it is adopted for the purposes of linking retirement salaries to its percentage. Therefore, what will be adopted in the expected increase next May is the growth rate in average wages, as it is much lower than the inflation rate, and I will discuss that in a soon-to-be post, God willing.
Second: With regard to the maximum wage subject to security deduction and the maximum limit of unemployment allowance, the law stipulates that they are linked to inflation only (and wage growth has nothing to do with the issue) in the month of January of each year.
Two days ago, the Insurance Corporation announced the new maximum wage subject to the guarantee and the new maximum limit for unemployment allowance for the current year, 2024, after linking them to the inflation rate recorded in the Kingdom for the past year, 2023, which amounted to 2.08%.
Accordingly, the maximum wage subject to the guarantee was raised from (3538) dinars, to (3612) dinars, meaning an increase of (74) dinars, equivalent to the aforementioned inflation rate.
The maximum limit for the monthly unemployment allowance was also raised from (591) dinars to (603) dinars, meaning an increase of (12) dinars, equivalent to the inflation rate.
Taking note that the new maximum wage subject to insurance and the new maximum limit for unemployment allowance as stated above are considered effective from the beginning of the year, i.e. from 1-1-2024.
Journalist and jurist/ Musa Al-Subaihi