The decision to establish the golden handshake program and the internal announcement of government jobs published on 1-8-1446 AH

BY Nassr Albarakati · 19 February 2025

The decision to establish the golden handshake program and the internal announcement of government jobs published on 1-8-1446 AH

As part of the Kingdom's efforts to improve the efficiency of the public sector labor market and make optimal use of human resources, this Resolution was issued to establish detailed regulations aimed at improving recruitment procedures and filling vacant positions efficiently and transparently. It supports secondment and part-time employment mechanisms, provides for the cancellation of unused positions, and introduces the "Golden Handshake" program as an incentive for voluntary separation from service, helping achieve workforce balance and reduce operating costs, under specific controls designed to ensure fairness and effectiveness. The key provisions are set out below.

First: Internal Announcement of Vacant Positions

Government entities are required to announce their vacant positions internally for five days before opening them to general recruitment, to allow the positions to be filled through internal staff transfers. Certain positions are excluded from this requirement, including operative-worker positions, positions on the wage schedule, and positions deemed vital or critical. A list of vital positions eligible for direct hiring, without prior announcement, must be prepared. This Resolution does not apply to positions excluded under the Civil Service Law.

Second: Addressing Long-Vacant Positions

Vacant positions in government entities that have remained unfilled for five years or more are to be identified, with arrangements put in place to cancel newly created positions that remain unfilled within two years of their creation. A list of positions excluded from this requirement is to be prepared.

Third: Amending Article 3 of the Wage-Scale Employees Regulation in Government Bodies

Employees appointed on the wage schedule are to be treated the same as operative-worker position holders in terms of working hours, leave, allowances, and training, with the Labor Law's provisions on overtime compensation applied to them, except that guards are excluded from overtime hours.

Fourth: Priority for Filling Positions Through Secondment

Priority is given to meeting the staffing needs of support and auxiliary position categories through the secondment of civil service employees, rather than new hiring, for a defined period. A seconded employee is subject to a probationary period of between 30 and 90 days, and secondment positions are announced through the Ministry of Human Resources and Social Development's electronic system for internal announcements.

Fifth: Introducing the "Golden Handshake" Program

An incentive program is being launched to encourage voluntary separation from service through resignation, based on specific criteria. These include offering a financial incentive to the resigning employee, defining the targeted age groups and years of service, requiring official approval, and giving priority participation to employees with lower qualifications. Non-supervisory positions vacated through the program are to be cancelled, program beneficiaries are barred from future government employment, and an employee may only benefit from the program after other options have been exhausted. The program will be reviewed annually to ensure it is achieving its objectives effectively.

Sixth: Budget Allocation for the "Golden Handshake" Program

SAR 12,754,000,000 has been allocated to the program for the 2025-2027 fiscal years.

Seventh: Authorizing the Minister of Finance to Fund the Program for 2025

The Minister of Finance may arrange and allocate up to SAR 5,059,000,000 of the above amount during the 1446H-1447H (2025) fiscal year to fund the program as needed, with a dedicated budget line established within the Ministry of Human Resources' budget to implement the program.

Eighth: Including Budget Allocations for Future Years

The Ministry of Human Resources and Social Development will include the amounts needed to fund the Golden Handshake program in the 2026 and 2027 budgets, in coordination with the Ministry of Finance, to help streamline the salary and wage bill by SAR 22,980,600 in future years.

Ninth: Part-Time Employment in Government Entities

Government entities whose employees are subject to the civil service pay scales are required to allocate a percentage of their positions to part-time employment, in accordance with the applicable regulations. This percentage is determined by agreement between the government entity and the Ministry of Human Resources and Social Development.

In Closing

This Resolution forms part of a broader set of regulatory reforms aimed at raising the efficiency of government employment and striking a balance between the actual needs of government entities and the financial resources available. By strengthening internal recruitment mechanisms, activating secondment and part-time employment programs, and organizing the process of voluntary separation from service through the Golden Handshake program, the Resolution supports more efficient public spending and helps ensure the sustainability of the government labor market, achieving the highest possible standards of efficiency and workplace fairness.