Saudi Arabia will raise the minimum monthly wage required for a Saudi national to count fully towards Saudization targets under the Nitaqat programme to SR6,000 in April 2028, with an initial increase to SR5,000 taking effect a year earlier.
Deputy Minister of Human Resources and Social Development for Labour Affairs Abdullah Abuthnain said the revised wage threshold will cover five categories of workers in private sector establishments: full-time employees, part-time employees, workers under flexible work arrangements, part-time students and people with disabilities who are capable of working.
The policy will be implemented in two phases. The first phase will begin on April 25, 2027, when the minimum wage for Saudization calculations will rise to SR5,000. The second phase will take effect on April 25, 2028, raising the threshold to SR6,000.
Private sector employers have been given a six-month grace period to prepare for the first phase, followed by a 12-month interval before the second increase takes effect. The phased implementation is intended to give businesses time to review salary structures, assess job opportunities for Saudi nationals and make the necessary adjustments to comply with the new requirements.
Abuthnain said the revised threshold aims to improve job quality, strengthen employment stability and increase Saudi workers’ incomes, while supporting the development of national talent and expertise.
He added that the measure is intended to strengthen Saudi nationals’ participation in the labour market by making private sector employment more attractive, particularly for jobseekers and those entering the workforce.
The Ministry of Human Resources and Social Development continues to develop policies and initiatives aimed at increasing Saudi nationals’ participation in the private sector, improving wages and enhancing workplace conditions.
The wage revision comes alongside announced changes to electricity, water and wastewater tariffs, which are scheduled to take effect on January 1, 2027.
The Saudi Energy Company and the National Water Company announced the revised tariffs on October 25, 2026, with rates varying according to customer category and consumption levels.
Under the new electricity rates, residential consumers will pay 21 halalas per kWh for monthly consumption of up to 6,000 kWh and 33 halalas for consumption above that level.
Commercial, private healthcare and educational facilities will pay 25 halalas per kWh for consumption up to 6,000 kWh and 35 halalas above the threshold, while industrial users will pay 23 halalas per kWh.
Rates for other sectors, including agriculture, charitable organisations and government entities, will vary by category and consumption, alongside revised fixed charges based on circuit breaker capacity.
Water tariffs will range from SR1 to SR6 per cubic metre across four consumption tiers, while wastewater charges will range from SR0.50 to SR3 per cubic metre. The revised structure also introduces monthly water and wastewater service charges based on meter diameter
The changes to utility tariffs coincide with royal directives concerning support for employees in the military, government and private sectors, according to the Saudi Gazette report.