Saudi Arabia’s Ministry of Human Resources and Social Development has revealed new details concerning an increase in the minimum monthly salary required for a Saudi employee to be counted as a full worker under the Nitaqat Saudization program. The initiative aims to improve employment quality, strengthen job stability, and encourage greater participation by Saudi nationals in the private sector.

Deputy Minister for Labor Affairs Dr. Abdullah Abu Thunain explained that the changes cover five categories of Saudi workers: full-time employees, part-time employees, flexible-work employees, students working part-time while pursuing their education, and persons with disabilities who are capable of working. Each category will remain subject to the applicable program rules and calculation requirements.

The new thresholds will be introduced in two stages. The first stage begins on April 25, 2027, when the salary required for full Saudization counting increases to SAR 5,000 per month. The second stage takes effect on April 25, 2028, raising the threshold to SAR 6,000 per month.

Private-sector establishments have been given a transition period to prepare for the changes. This allows employers to review compensation structures, assess workforce requirements, and make appropriate adjustments before the implementation of each stage, while continuing to comply with applicable labor regulations.

Importantly, these figures do not establish a universal mandatory minimum wage for all Saudi private-sector employees. Instead, they determine the salary level required for an employee to receive full counting under the Nitaqat program. Employees earning below the specified thresholds may be counted differently depending on their salaries and the applicable rules.

According to the deputy minister, the initiative is expected to improve employment opportunities, promote job stability, support higher income levels, and make private-sector careers more attractive to Saudi citizens, particularly young people and job seekers entering the labor market.

The decision forms part of Saudi Arabia’s broader efforts to develop its labor market and strengthen national workforce participation. Employers and employees are encouraged to follow forthcoming official guidance explaining the detailed calculation procedures and requirements for each covered category.

Source: Al Arabiya English / Al Arabiya Net