The measures were approved by King Salman bin Abdulaziz following a recommendation from Crown Prince and Prime Minister Mohammed bin Salman. They aim to help citizens manage the financial impact of changes to electricity and water tariffs, which are scheduled to take effect on January 1, 2027.
Minimum Salary to Rise to SAR 6,000
Under the new directive, private-sector employers will be required to pay Saudi employees a minimum monthly salary of SAR 5,000 for them to count fully toward Saudization targets under the Nitaqat programme.
The initial salary requirement will take effect after six months. A further increase is planned 12 months after the initial adjustment, raising the minimum salary to SAR 6,000 per month.
Saudi authorities say the policy is intended to improve wages for Saudi nationals in the private sector and make their employment more sustainable.
SAR 500 Monthly Financial Support for Eligible Citizens
The financial assistance package includes an additional SAR 500 per month for government employees, military personnel and individuals covered by relevant employment programmes.
The same monthly increase will also be provided to eligible retirees and families of deceased or retired employees covered by the social insurance system.
Families receiving social security benefits will also qualify for an additional SAR 500 per month, subject to applicable rules and regulations.
Measures Aim to Ease Impact of Utility Tariff Changes
According to Saudi authorities, the additional payments are designed to reduce the financial pressure on citizens resulting from changes to electricity and water prices.
The salary adjustment and financial assistance form part of the kingdom’s measures to support eligible households while strengthening the position of Saudi nationals in private-sector employment.
