Late on Wednesday, King Salman issued a royal order restoring all allowances, bonuses and financial benefits to civil servants with a retrospective effect، Saudi Gazette reported.
“This order shall be effective from the date of the Cabinet’s decision dated 25/12/1437 Hijri (Sept. 26, 2016)."
The 2016 September decision saw the Saudi government scaling back on financial benefits for public sector employees.
Under the latest order, they will now be receiving all allowances that were cut during the scale back period.
"The decision to restore allowances and financial benefits comes in retrospective effect, meaning that all deducted pay will be refunded"
Effect of the decision on the Saudi economy
According to economic experts in the kingdom, the latest directive is expected to boost the kingdom's economy in the coming weeks.
According to online Saudi news site, Aajil, "the latest order will have a positive effect on many of the country's industries, including entertainment, tourism and banking."
This is because it also comes along with a recent decision to extend the public sector Eid holiday by an entire week.
Many hailed the positive move on social media
"This decision is going to have a great positive effect on all the kingdom's industries."
"The news has brought everyone relief and happiness"
Others thanked King Salman
"This order is a Eid gift that has made everyone happy. God bless you King Salman."
Everyone congratulated public sector employees
"Congratulations to all public sector employees."