Saudi Arabia has announced a significant package of economic and social support measures following directives issued by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, based on proposals submitted by Crown Prince and Prime Minister Mohammed bin Salman. The measures coincide with upcoming adjustments to electricity and water consumption tariffs and are intended to ease financial pressures on eligible citizens.

The directives were reported by the Saudi Press Agency on Sunday, October 25, 2026. They cover several groups receiving government-related benefits, alongside changes affecting wage thresholds used to calculate Saudi employee participation in the private sector’s Nitaqat nationalisation programme.

Under the announced measures, a monthly allowance will increase by SAR 500 for eligible civilian and military employees covered by civil service salary scales and operational programme arrangements. The support also extends to retirees and eligible family members of deceased contributors or retirees covered by the Social Insurance system.

Families receiving Social Security benefits will also receive an additional SAR 500 in monthly support, subject to the established eligibility rules and administrative mechanisms. The measure is designed to help qualifying households manage living expenses associated with the forthcoming utility tariff changes.

The support package accompanies adjustments to electricity and water tariffs scheduled to take effect on January 1, 2027. The implementation date gives consumers and businesses time to review the revised tariff structures before they become applicable.

Saudi Energy separately announced changes to electricity service tariffs from the beginning of 2027. It directed residential and business customers to its official website for the revised tariff details and encouraged users with questions about their bills to contact its approved customer service channels.

The National Water Company also announced updated water and wastewater service tariffs covering residential, non-residential and government customers. The revised rates are scheduled to take effect on the same date, with further details available through the company’s official website, mobile application and customer support services.

The directives also address employment in Saudi Arabia’s private sector through a change to the minimum wage required for a Saudi worker to count fully towards an employer’s Saudisation quota under the Nitaqat programme.

According to the official announcement, the threshold for full counting will rise to SAR 5,000 six months after the measure begins. It will subsequently increase to SAR 6,000 twelve months after the first increase takes effect, establishing a phased approach intended to encourage stronger wage levels and sustainable employment for Saudi nationals.

Importantly, the Nitaqat change concerns the wage threshold used for calculating full participation in Saudisation quotas. It should not be interpreted as an automatic salary increase for every Saudi private-sector employee or as a universal minimum wage applying identically to all employment arrangements.

Similarly, the additional SAR 500 announced under the royal directives is not a payment automatically available to every Saudi citizen or resident. Eligibility depends on the specific categories identified in the announcement and the relevant administrative and regulatory requirements.

The measures bring together social support, utility pricing adjustments and employment-related reforms. They are designed to reduce the impact of changes in essential service costs while encouraging improved employment conditions for Saudi citizens.

Citizens and employers are advised to follow further official announcements for payment arrangements, eligibility procedures and the precise implementation timetable for each component of the package. Electricity and water customers should also consult the relevant service providers before the revised tariffs take effect in January 2027.

Source: Saudi Press Agency (SPA)