RIYADH — The Saudi Arabian government has decided to increase the minimum monthly wage that must be paid to Saudi private-sector employees in order for them to be considered full-time workers under the Nitaqat Saudization program. The increases are scheduled to take effect in April 2027 and April 2028, respectively.
According to the information that was made public by the Ministry of Human Resources and Social Development, the decision would be implemented in two stages, with the first phase beginning six months after the announcement was made on October 25, 2026.
On April 25, 2027, the first phase will take effect, increasing the minimum monthly pay level for full inclusion in Saudization calculations to SR5,000. Beginning on April 25, 2028, the second phase will commence, which will result in the barrier being raised to SR6,000.
The government made it clear that the decision does not require private-sector companies to immediately raise the pay of Saudi employees. In its place, it modifies the minimum wage threshold that is utilised in the process of determining whether or not a Saudi employee is counted in full toward the Saudization criteria of a corporation. Private-sector institutions can conform to the new requirements by implementing the mandate in stages.
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