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Saudi Arabia has announced a package of economic and social support measures following directives issued by Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, based on recommendations presented by Crown Prince and Prime Minister Mohammed bin Salman.

The measures are designed to support eligible citizens and ease the financial impact of changes to essential household expenses. Announced on Sunday, October 25, 2026, the package coincides with planned adjustments to electricity and water consumption tariffs, scheduled to take effect on January 1, 2027.

The announced directives include an additional monthly allowance of SAR 500 for eligible civilian and military employees covered by civil service salary scales and specified operational employment programmes. The increase also extends to retirees and qualifying family members of deceased insured contributors or retirees under the social insurance system, subject to the relevant eligibility regulations. In addition, households receiving social security assistance will receive monthly support of the same amount under the applicable rules. These measures are intended to help designated groups manage the financial impact of revised electricity and water charges.

The package also introduces changes affecting Saudi employees working in private-sector establishments. Under the revised arrangements, the wage threshold required for a Saudi worker to count fully toward a company’s Saudization percentage under the Nitaqat programme will increase to SAR 5,000 after six months from the commencement of the measure. It will then rise to SAR 6,000 twelve months after the first increase takes effect. The phased adjustment is intended to encourage improved wage levels and strengthen the sustainability of employment opportunities for Saudi nationals in the private sector.

An important distinction must be made between the Nitaqat wage-counting threshold and a universal statutory minimum salary. The announced measure changes the conditions under which a Saudi employee is counted fully toward workforce localization targets. It does not automatically mean that every Saudi private-sector worker will receive a salary of SAR 6,000, nor does it impose the same automatic increase on every employer. Similarly, the additional SAR 500 monthly support is not a universal payment to all citizens or foreign residents. Eligibility is restricted to the categories specified in the official announcement and remains subject to the approved administrative requirements.

The wider package comes as Saudi Arabia prepares to introduce revised electricity and water tariffs at the beginning of 2027, giving households and businesses time to consider the expected changes to their expenses. The measures are intended to balance the development and financing of essential services with support for eligible citizens, while encouraging better employment conditions in the private sector. Beneficiaries should monitor official government announcements for detailed payment mechanisms and eligibility arrangements. The original announcement clearly established the January 1, 2027 commencement date for the utility tariff adjustments but did not separately specify the first payment date of the additional allowance for every eligible category.

Source: Saudi Press Agency and Umm Al-Qura Official Gazette.