Politics · Saudi Arabia · 3 hrs ago
Saudi Arabia announces payments and wage increases ahead of utility tariff changes
Saudi Arabia will provide monthly payments of 500 riyals to eligible citizens as electricity and water tariffs change on January 1, 2027.
The support covers civil and military employees, retirees, eligible social security households and some family members of deceased people covered by social insurance.
The payments are intended to ease the effect of higher utility costs on household budgets.
The government will also raise the minimum monthly wage used to count a Saudi employee as a full worker under Nitaqat, its private-sector nationalisation programme.
That wage threshold will first rise to 5,000 riyals six months after the measure begins.
It will then increase to 6,000 riyals 12 months after the first increase takes effect.
The wage changes are intended to raise pay and support the continued employment of Saudi nationals in private companies.
King Salman ordered monthly allowances of SR500 for several groups to help offset changes to electricity and water tariffs.
The measures also raise the minimum wage used to count Saudi employees fully toward private-sector Saudization targets under Nitaqat.
That minimum will rise to SR5,000 after six months and to SR6,000 twelve months after the first increase.
The tariff adjustments are due to take effect on January 1, 2027.
- Who
- King Salman ordered the measures, following a recommendation from Crown Prince and Prime Minister Mohammed bin Salman.
- What
- The package includes SR500 monthly allowances for specified groups and higher Nitaqat wage thresholds.
- When
- The orders were reported on October 25, 2026. Tariff adjustments take effect on January 1, 2027; the wage increases begin after six months and twelve months after the first increase.
- Where
- Saudi Arabia.
- Why
- To ease the financial impact of electricity and water tariff adjustments and support Saudi employment in the private sector.
This story does not have two clearly opposing sides.
King Salman’s measures were reported, including monthly allowances and staged increases to the Nitaqat wage threshold.
Adjustments to electricity and water consumption tariffs are due to take effect.
The Nitaqat minimum wage threshold is set to rise to SR5,000.
The Nitaqat minimum wage threshold is set to rise to SR6,000.
- Monthly allowance
- SR500
- First Nitaqat threshold
- SR5,000 after six months
- Later Nitaqat threshold
- SR6,000 twelve months after the first increase
- Tariff adjustment date
- January 1, 2027
- Nitaqat program
- Private-sector Saudization program