Saudi Arabia will raise the minimum monthly wage threshold for Saudi employees to count fully towards private-sector Saudisation requirements to SR5,000 in April 2027 and SR6,000 in April 2028, alongside a SR500 monthly allowance increase for eligible citizens.
The measures were ordered by King Salman bin Abdulaziz Al Saud following a proposal by Crown Prince and Prime Minister Mohammed bin Salman, according to the Saudi Gazette.
The directives include additional financial support for eligible civilian and military employees, retirees, families of deceased contributors or retirees covered by the Social Insurance Law, and households receiving social security benefits.
The SR500 monthly increase is intended to help citizens manage the impact of electricity and water tariff adjustments scheduled to take effect on January 1, 2027.
The Ministry of Human Resources and Social Development said the revised wage thresholds under the Nitaqat Saudisation programme will be introduced in two phases, beginning six months after the announcement on October 25, 2026.
The first phase will take effect on April 25, 2027, when the minimum monthly wage required for a Saudi employee to count fully towards a company's Saudisation quota will rise to SR5,000. The threshold will subsequently increase to SR6,000 from April 25, 2028.
The ministry clarified that the decision does not require private-sector employers to automatically increase the salaries of Saudi employees. Instead, it changes the wage threshold used to determine whether an employee counts in full towards an establishment's Saudisation requirements.
Employees earning below the applicable threshold may not count fully towards the required Saudisation ratios, potentially affecting how employers meet their obligations under the programme.
The phased rollout is intended to give private-sector establishments time to prepare for the revised requirements.
SR500 monthly support for eligible citizens
Alongside the wage threshold changes, the government will provide an additional SR500 per month to eligible beneficiaries across several categories, subject to the applicable rules and procedures.
These include civilian and military employees covered by civil service pay scales and employment programmes, retirees, eligible family members of deceased contributors or retirees covered by the Social Insurance Law, and families receiving social security support.
The financial measures come ahead of electricity and water tariff adjustments scheduled to begin on January 1, 2027. The additional support is intended to ease the financial impact of these changes on Saudi households.
While the allowance increase provides direct financial assistance to eligible beneficiaries, the revised Nitaqat thresholds will affect how private-sector employers meet Saudisation requirements, with the first increase due in April 2027.
The measures bring together household financial support and changes to the wage criteria used to promote the employment of Saudi nationals in the private sector.