Saudi Arabia to raise minimum wage threshold for Saudization programme
The Kingdom will implement two-phase increases to the minimum monthly wage threshold used to calculate private-sector Saudization requirements.
At a glance
- Minimum wage threshold for Saudization calculations will rise to SR5,000 in April 2027
- A second increase to SR6,000 will take effect in April 2028
- The change adjusts Saudization calculations but does not mandate salary increases
- Phased implementation provides adjustment period for private-sector employers
Saudi Arabia's Ministry of Human Resources and Social Development announced plans to raise the minimum monthly wage threshold for Saudi private-sector employees under the Nitaqat Saudization programme. The threshold will increase to SR5,000 in April 2027 and SR6,000 in April 2028, with implementation beginning six months after the announcement on October 25, 2026.
The ministry said the adjustment does not require employers to directly raise employee salaries. Instead, it modifies the threshold used to determine whether a Saudi worker counts fully toward a company's Saudization requirements. The phased approach gives private-sector establishments time to adapt to the new requirements.
Why it matters
The Nitaqat programme is central to Saudi Arabia's employment policy for private-sector Saudization. The threshold adjustments affect how companies meet localisation requirements.
Original reporting
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