- Saudi Arabia will increase the minimum supported wage to SR5,000 ($1,333) per month starting April 25, 2027, and to SR6,000 the following year.
- The Human Resources Development Fund (HRDF) aims to enhance job quality and promote the hiring of Saudi nationals in the private sector.
- The wage increase is part of the Nitaqat program, which incentivizes companies to employ Saudi nationals based on compliance with Saudization requirements.
- The HRDF will cover up to 50% of the wages for supported Saudi employees, with a maximum contribution of SR3,000 per month.
- The initiative focuses on improving job stability and investment in the country's human capital, encouraging greater participation by Saudi women and men in the workforce.
- Details regarding the program and eligibility can be found on the HRDF's official website.
RIYADH: Saudi Arabia has announced it will raise the minimum supported wage under its Employment Support Program to SR5,000 ($1,333) a month from April 25, and SR6,000 a year later.
Announced by the Human Resources Development Fund, the move builds on the fund’s role in empowering national talent and enhancing its competitiveness in the labor market, while developing support mechanisms in line with objectives to improve job quality and sustainability, according to the Saudi Press Agency.
It also aims to encourage private-sector establishments to recruit Saudi nationals, contributing to greater participation by Saudi men and women in the labor market and supporting economic development objectives.
This coincides with the phased implementation of the Ministry of Human Resources and Social Development’s decision to raise the minimum wage used to calculate the employment of Saudi nationals under the Nitaqat program, the country’s Saudization scheme, which classifies private-sector companies according to their compliance with requirements for employing Saudi nationals.
Wage increase in two phases
The fund explained that the amendment would be implemented in two phases, with the first to begin on April 25, 2027, raising the minimum supported wage from SR4,000 to SR5,000 per month for new applications.
It added that the amendment will apply to existing support applications starting with support payments for May 2027.
The second phase will begin on April 25, 2028, raising the minimum supported wage from SR5,000 to SR6,000 per month for new applications, with the amendment to apply to existing support applications starting with support payments for May 2028.
HRDF to cover up to 50% of wages
The fund confirmed that it will continue to contribute toward the wages of Saudi employees benefiting from the product, covering up to 50 percent of their monthly wages, subject to a maximum of SR3,000 per month, in accordance with approved regulations and conditions.
It added that this will enhance private-sector establishments’ ability to benefit from support programs and promote the employment of national talent across various economic activities.
The employment support program is one of the fund’s initiatives aimed at encouraging private-sector establishments to hire Saudi men and women by contributing toward part of their wages.
The initiative supports employment opportunities, strengthens job stability, and improves the efficiency of investment in national human capital.
The fund called on beneficiaries to visit the HRDF’s official website for details about the product and eligibility requirements.
