All Issues
Current Issue

.Reprint (PDF) (1,143 KB)

Search Pubmed for articles by:

A Almohaimeed

Search Google Scholar for articles by:

A Almohaimeed

Issues in Business Management and Economics
Vol.4 (7), pp. 070-080 November, 2016
ISSN 2350-157X
Available online at
Article ID /BM/16/010/11 pages
Author(s) retain the copyright of this article. Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 4.0 International License.

Original Research Article

Analysis of the minimum wage: A mathematical model for the private sector in Saudi Arabia

Ahmed Almohaimeed

College of Business Administration, King Saud University, P.O. Box 71115 Riyadh 11587,Saudi Arabia

Author’s Email almohaimeed.ksu(at)


date Received: August 23, 2016     date Accepted: October 31, 2016     date Published: November 15, 2016


This research examines successively the criteria related to the needs of Saudi workers and their families, and then the criteria of Saudi economic nature taken into account when determining minimum wage levels such as poverty line variables, average wage and productivity, the consumer price index, and average employment. According to these criteria’s, the private sector minimum wage in Saudi Arabia should be SR 4,745, which is higher than the current minimum wage and falls within the subsistence level.

Key words: minimum wage, employment, private sector