Saudi announces SAR500 allowance hike, new salary rules: Here’s what to know
According to the Ministry of Human Resources and Social Development, the revised thresholds under the Nitaqat Saudisation program will be introduced in two phases
26 October, 2026
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Saudi Arabia will raise the minimum monthly wage threshold for Saudi employees to count fully toward private-sector Saudisation requirements to SAR5,000 in April 2027 and SAR6,000 in April 2028, while eligible citizens are set to receive an additional SAR500 in monthly allowances under directives issued by King Salman.
According to the Ministry of Human Resources and Social Development, the revised thresholds under the Nitaqat Saudisation program will be introduced in two phases, starting six months after the announcement on October 25, 2026, a Saudi Gazette report said.
The first phase will take effect on April 25, 2027, when the minimum monthly wage required for a Saudi employee to count fully toward a company’s Saudization quota will increase to SAR5,000. The threshold will subsequently rise to SAR6,000 on April 25, 2028.
The ministry clarified that the decision does not oblige private-sector employers to directly raise the salaries of Saudi employees. Instead, it changes the wage threshold used to determine whether employees count fully toward their employers’ Saudization requirements. The phased rollout is intended to give businesses time to prepare for the changes.
King Salman orders SAR500 monthly allowance increase
Separately, King Salman has ordered a SAR500 increase in monthly allowances for eligible civilian and military employees covered by civil service pay scales and employment programs, retirees, and family members of deceased contributors or retirees covered by the Social Insurance Law.
Families receiving social security benefits will also qualify for additional monthly support of SAR500, subject to applicable regulations and procedures.
The measures, based on a proposal presented by Crown Prince and Prime Minister Mohammed bin Salman, coincide with adjustments to electricity and water consumption tariffs announced by the Saudi Energy Company and the National Water Company, scheduled to take effect on January 1, 2027.
The financial support is intended to help ease the impact of the utility tariff adjustments on citizens.
The directives also seek to improve salary levels and promote sustainable employment opportunities for Saudi nationals in the private sector through the revised Nitaqat wage requirements.


















