Saudi Arabia Approves ‘Golden Handshake’ Program Inspired by Global Models

Employees at the Saudi Ministry of Human Resources and Social Development booth at a conference (X)
Employees at the Saudi Ministry of Human Resources and Social Development booth at a conference (X)
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Saudi Arabia Approves ‘Golden Handshake’ Program Inspired by Global Models

Employees at the Saudi Ministry of Human Resources and Social Development booth at a conference (X)
Employees at the Saudi Ministry of Human Resources and Social Development booth at a conference (X)

Saudi Arabia has introduced the “Golden Handshake” program to offer financial incentives for government employees to voluntarily resign.

The goal is to reduce costs related to salaries and benefits for long-serving workers, creating space for others with lower salaries and skills suited to the country’s digital transformation.

The government has allocated SAR 12.7 billion ($3.38 billion) for the first three years of the program, inspired by similar global initiatives.

As of the fourth quarter of 2024, Saudi Arabia’s public sector employs 1.2 million people, excluding the military. The kingdom spends about 40% of its budget on salaries and employee compensation, with SAR 544 billion ($145 billion) set aside for this in 2024.

Experts, who spoke to Asharq Al-Awsat, have differing opinions on the financial compensation under Saudi Arabia’s “Golden Handshake” program for government employees. One expects the severance package to range from 12 to 24 months of salary, while another estimates it could be from 24 to 60 months of salary.

While the “Golden Handshake” is not new in Saudi Arabia, where large companies offer early retirement packages, it is a new approach for the public sector, which is traditionally seen as offering job security.

The Saudi program is similar to global initiatives encouraging voluntary resignations when employees’ skills are no longer needed. For example, the US offers up to $25,000 for employees who leave voluntarily, while the UK offers up to £149,800 for retiring police officers.

Dr. Mohammed Dulaim Al-Qahtani of King Faisal University expects compensation to range from 12 to 24 months of salary. For example, with a monthly salary of SAR 15,000, the package could range from SAR 180,000 to SAR 360,000.

Badr Al-Anzi, board member of the Saudi Human Resources Association, believes the compensation could range from 24 to 60 months of salary. For example, with a monthly salary of 15,000 riyals, the minimum compensation would be SAR360,000, and the maximum could reach SAR900,000.

Priority for the program will be given to employees with lower qualifications, and it will be available only after other options, such as transfers and skill development, have been explored. Employees close to retirement are excluded.

The government has also allowed agencies to announce vacant positions internally for five days before following regular procedures, to fill positions through transfers between government departments.

The program is expected to provide financial liquidity, encourage private-sector innovation, improve government efficiency, and reduce the financial burden on the state budget. The Ministry of Human Resources and Social Development is coordinating with relevant authorities to set the program’s guidelines.

Ultimately, the “Golden Handshake” is a significant initiative aimed at improving the efficiency of the public sector, with attractive financial compensation expected for those who participate.

 



European Trade Ministers Meet to Forge Strategy after Surprise 30% Tariffs from Trump

European Commission President Ursula von der Leyen gives a speech during a plenary session at the European Parliament, in Strasbourg on July 9, 2025. (Photo by Jean-Christophe VERHAEGEN / AFP)
European Commission President Ursula von der Leyen gives a speech during a plenary session at the European Parliament, in Strasbourg on July 9, 2025. (Photo by Jean-Christophe VERHAEGEN / AFP)
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European Trade Ministers Meet to Forge Strategy after Surprise 30% Tariffs from Trump

European Commission President Ursula von der Leyen gives a speech during a plenary session at the European Parliament, in Strasbourg on July 9, 2025. (Photo by Jean-Christophe VERHAEGEN / AFP)
European Commission President Ursula von der Leyen gives a speech during a plenary session at the European Parliament, in Strasbourg on July 9, 2025. (Photo by Jean-Christophe VERHAEGEN / AFP)

European trade ministers are meeting in Brussels on Monday, following US President Donald Trump’s surprise announcement of 30% tariffs on the European Union.

The EU is America’s biggest business partner and the world’s largest trading bloc. The US decision will have repercussions for governments, companies and consumers on both sides of the Atlantic, the Associated Press said.

“We shouldn’t impose countermeasures at this stage, but we should prepare to be ready to use all the tools in the toolbox,” said Denmark’s foreign minister, Lars Løkke Rasmussen, told reporters ahead of the meeting. “So we want a deal, but there’s an old saying: ’If you want peace, you have to prepare for war.'”

The tariffs, also imposed on Mexico, are set to start on Aug. 1 and could make everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals more expensive in the US, and destabilize economies from Portugal to Norway.

Meanwhile, Brussels decided to suspend retaliatory tariffs on US goods scheduled to take effect Monday in hopes of reaching a trade deal with the Trump administration by the end of the month.

The “countermeasures” by the EU, which negotiates trade deals on behalf of its 27 member countries, will be delayed until Aug. 1.

Trump’s letter shows “that we have until the first of August” to negotiate, European Commission President Ursula von der Leyen told reporters in Brussels on Sunday.

The letters to the EU and Mexico come in the midst of an on-and-off Trump threat to impose tariffs on countries and right an imbalance in trade.

Trump in April imposed tariffs on dozens of countries, before pausing them for 90 days to negotiate individual deals. As the three-month grace period ended this week, he began sending tariff letters to leaders but again has pushed back the implementation day for what he says will be just a few more weeks.

If he moves forward with the tariffs, it could have ramifications for nearly every aspect of the global economy.

In the wake of the new tariffs, European leaders largely closed ranks, calling for unity but also a steady hand to not provoke further acrimony.

Just last week, Europe was cautiously optimistic.

Officials told reporters on Friday they weren't expecting a letter like the one sent Saturday and that a trade deal was to be inked in “the coming days." For months, the EU has broadcast that it has strong retaliatory measures ready if talks fail.

Reeling from successive rebukes from Washington, the EU is now diversifying its economic, political and defense networks, mostly in Asia.

The EU top brass will visit Beijing for a summit later this month while courting other Pacific nations like South Korea, Japan, Vietnam, Singapore, the Philippines, and Indonesia, whose prime minister visited Brussels over the weekend to sign a new economic partnership with the EU. It also has mega-deals in the works with Mexico and a trading bloc of South American nations known as Mercosur.

While meeting with Indonesia's prime minister on Sunday, Von der Leyen said that “when economic uncertainty meets geopolitical volatility, partners like us must come closer together.”