Business · Companies · 1 hr ago
Saudi Arabia to raise wage thresholds for Nitaqat counting by 2028
Saudi Arabia plans to raise the salary threshold for counting Saudi workers fully in Nitaqat in private-sector nationalisation targets.
From April 2027, workers earning at least 5,000 riyals a month will count fully, while those earning 4,000 to under 5,000 riyals will count as half a worker.
Workers earning less than 4,000 riyals will not count toward those targets under that phase.
From April 2028, the full-count threshold will rise to 6,000 riyals, and workers earning 5,000 to under 6,000 riyals will count as half.
These changes affect how employers meet nationalisation targets, not a general minimum wage.
Separately, the Human Resources Development Fund plans to raise the minimum wage for its employment support programme to 5,000 riyals in April 2027 and 6,000 riyals in April 2028, while continuing to cover up to half of eligible wages, capped at 3,000 riyals a month.
Saudi Arabia’s Human Resources Development Fund plans to raise the minimum monthly wage eligible for employment support in two stages.
The threshold will rise from 4,000 riyals to 5,000 riyals for new applications on April 25, 2027, and to 6,000 riyals on April 25, 2028.
The changes will apply to existing support applications starting with payments for May 2027 and May 2028, respectively.
The fund will continue covering up to 50% of eligible Saudi employees’ wages, capped at 3,000 riyals per month.
The changes coincide with higher wage thresholds for counting Saudi employees under the Nitaqat nationalization program.
- Who
- Saudi Arabia’s Human Resources Development Fund, known as Hadaf, plans the changes.
- What
- It will raise the minimum wage eligible for employment support in two stages, to 5,000 riyals and then 6,000 riyals.
- When
- The first stage begins on April 25, 2027, and the second on April 25, 2028. Existing applications are affected from the following May’s support payments.
- Where
- Saudi Arabia.
- Why
- The employment support program aims to encourage private-sector employers to hire Saudi men and women and support job stability.
This story does not have two clearly opposing sides.
The minimum wage for new employment-support applications rises from 4,000 riyals to 5,000 riyals.
The first-stage change applies to existing support applications’ payments.
The minimum wage for new applications rises from 5,000 riyals to 6,000 riyals.
The second-stage change applies to existing support applications’ payments.
- Current support threshold
- 4,000 riyals per month
- First-stage threshold
- 5,000 riyals per month from April 2027
- Second-stage threshold
- 6,000 riyals per month from April 2028
- Wage support rate
- Up to 50% of monthly wages
- Monthly support cap
- 3,000 riyals
3 sources
What people are saying
The fund will continue its contribution to supporting the wages of Saudi employees benefiting from the program at up to 50% of the monthly wage, with a maximum of 3,000 riyals per month.