Riyadh, Jan 6 (IANS): Saudi King Salman bin Abdulaziz Al Saud has ordered an inflation allowance for citizens to ease the expected rise in the cost of living after the newly enforced Value Added Tax (VAT).

In a royal decree, issued on Friday night, the King ordered an annual bonus for civil and military personnel for the current fiscal year to be paid effective from January 1, 2018, Al Arabiya local news reported on Saturday.

The stated grants include payment of a monthly living allowance of $267 for civil and military employees for one year, and a reward of $1,333 for military personnel participating in the frontlines of military operations in the southern borders of the Kingdom.

In addition to pensions paid by the General Organization for Social Insurance for beneficiaries, $133 will be granted for one year.

The order highlighted that the state shall bear the VAT for citizens benefiting from private health services and private education.