Is it worth signing a new contract with reduced salary?

Hello dear,

I am an Architect and have been working here in KSA for 6 years, in the construction field there is a big recess yes, and there is more engineers in the market than the market require which led to salary decrease in the market, however only few companies reduced salaries while other company just reduced the staff.

As for the education field I am not sure if there is a recess or no, and it is completely a personal decision for you to decide if your new salary will be worth it for you or no. just sit down with a piece of paper and a pen, summarize your payments and see if you will be able to stay with this new salary or no

Best Regards
Mallouk

Hi

Salaries are definitely not as lucrative as they once were and costs have and will increase.
The 64M$ question is if you don’t sign will they be able to replace you for the same salary they are offering you.
If the answer is no then it’s worth hanging out and not signing. If the answer is yes and you want to stay here you have done your calculations and it makes financial sense then sign.
Good Luck
Never an easy one.
Have you actually tried to negotiate?

Martin

Look, the overall economic situation has been tough in the GCC for the last few years primarily due to the lower oil prices.  This leads to budget deficits for the Government which it then tries to bridge through other means e.g. reducing subsidies on fuel/utilities, increasing Iqama and other fees, VAT etc etc.   All of this leads to a flow on impact on businesses and individuals in the Kingdom, reducing corporate profits and disposable incomes.   I wouldn't call it a full blown recession just yet as for that to hold true (economic definition wise), that requires GDP to fall for two successive quarters which happened in 2018 but not now.  Some sectors are badly affected irrespective of whether the whole country is in a recession or not e.g. construction and also education to some extent (with many expats leaving the Kingdom).  It is just a tough economic situation which leads to businesses tightening their belts through either salary cuts or laying people off.

You as an employee don't have a lot of choices.  You can negotiate the contract, accept it or refuse & leave.  It really depends on your personal circumstances.