New regulations for the distinguished competencies clause: conditions and exempted categories

In a strategic move aimed at enhancing performance in the public sector and strengthening transparency and governance principles, relevant authorities in the Kingdom of Saudi Arabia have approved new regulations for the "Distinguished Performance" fund. This step comes within the context of the comprehensive administrative reforms underway in the Kingdom, where this fund replaces the "Specific Confidential Expenses" fund, reflecting a fundamental shift towards institutionalizing incentives and linking them to actual performance and productivity.

The context of the decision and its importance in developing the public sector

Adopting these regulations is an integral part of the Kingdom's Vision 2030 objectives, specifically concerning the Human Capital Development and Government Performance Improvement Program. This transformation aims to create a competitive work environment in both the civil and military sectors, ensuring that outstanding and diligent individuals are recognized according to clear and fair criteria, free from personal biases, thereby contributing to improved service quality for citizens and residents.

Eligibility requirements for the outstanding performance award

The regulatory controls set precise standards to ensure that rewards reach their rightful recipients, stipulating the following:

• Performance evaluation: The employee's job performance evaluation result in the last year must not be less than a "good" rating or its equivalent.
• Length of service: The employee must have spent at least 180 days working for the entity.
• Employment status: The employment relationship must be in place at the time the disbursement approval decision is issued.

These rewards include employees of the entities who hold civilian and military positions, including those appointed on the wages item, contractors according to the executive regulations for human resources, those seconded to the entity, and those assigned to personal protection.

The six categories excluded from the bonus

To ensure fairness and direct resources towards active employees on the job, Article 6 of the regulations stipulates the exclusion of 6 categories from receiving this bonus, namely:

1. The employee is blind.
2. The employee who is on scholarship or sent on study leave.
3. An employee seconded from one entity to another.
4. An employee who has not been on duty for more than 90 consecutive days during the year.
5. Some categories of contractors have regulations that govern special mechanisms for rewards.
6. Any other categories whose regulations governing their relationship with the entity stipulate a special mechanism for disbursing rewards to them.

Governance of spending and financial allocations

The regulations stipulate that the "Distinguished Performance" bonus cannot be combined with any other incentive bonus without the approval of the relevant committee. The regulations also require government entities to allocate 3.5 million riyals in their budgets for this purpose, emphasizing that these bonuses are not considered part of the basic salary and do not affect employment status.

As part of automation and financial control, the decision obliges entities to disburse rewards through the central financial rights system “Sarf”, after studying the requests by the competent committee within a period not exceeding 22 working days, which ensures the speed and accuracy of procedures.