Saudi Workers to See Higher Minimum Wage Thresholds in 2027 and 2028

Saudi Arabia has announced incremental increases to the minimum pay salary requirements for counting Saudi nationals on private sector Saudi quotas for the Nitaqat programme. The Ministry of Human Resources and Social Development announced changes on 25 October 2026, rising to SAR 5,000 in April 2027 and SAR 6,000 in April 2028.

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Saudi Minimum Wage Thresholds Rise in Two Phases

The updated guidelines stipulate that Saudi staff must receive a minimum salary of SAR 5,000 per month to fulfill the Saudi commitment ratio for a company’s Saudi workforces from 25th April 2027. The threshold will receive a further raise to SAR 6000 on April 25 2028, to allow companies sufficient time to prepare for the changes.

Nitaqat Rules Define how Saudi Workers Are Counted

The changes will affect the calculations in the Nitaqat System which determines the percentage of compliance of private companies with the national employment ratio. If the employee falls below the threshold he or she may not count towards the Saudiization percentage that a company is required to reach.

Saudi Minimum Wage Changes Do Not Set All Salaries

The ministry stated that the policy, which does not specify the absolute increase, was not meant for all arrears of salary in the private sector to be doubled. Instead, it revokes and updates the salary harmonization criteria to evaluate Saudization compliance, which may impact business payroll and labor plans.

Businesses Get Time to Prepare for New Thresholds

This step-by-step change will allow companies in the private sector to assess the options of compensation, recruitment and national talent development. The employers will have to take into account how the new thresholds impact their Nitaqat status at each of the effective dates, especially if existing salaries are under the new thresholds.

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