Business · Economy · 6 hrs ago
Saudi Arabia to raise support by 500 riyals and phase in higher Nitaqat wage rules
Saudi Arabia will increase monthly support by 500 riyals for several eligible groups while adjusting electricity and water tariffs.
The increase covers civil and military employees on specified pay scales, pensioners, some families of deceased social insurance members and households receiving social security support.
Nitaqat’s wage threshold will rise in stages, reaching 5,000 riyals six months after the change begins and 6,000 riyals 12 months after the first increase.
Under the current rules, a Saudi worker counts fully toward localization targets at a wage of 4,000 riyals, half at 3,000 to under 4,000, and not at all below 3,000.
Economists say the support may offset higher service costs and help protect households’ purchasing power.
They also say higher thresholds could make private-sector jobs more attractive to Saudi workers and support consumer spending; the tariff changes are linked to managing consumption and sustaining services and infrastructure.
Eligible groups are set to receive an additional 500 riyals in monthly support.
Saudi Arabia will gradually raise the wage counted for a full Saudi worker under the Nitaqat program from 4,000 to 5,000 riyals and then 6,000 riyals.
The wage changes are scheduled to take effect six months and 12 months after the relevant starting points.
The support increases cover several groups, including civil and military employees, retirees and households receiving social security.
Economists quoted by Okaz said the measures could help protect purchasing power and make private-sector jobs more attractive.
- Who
- Eligible employees, retirees, family members of deceased contributors or retirees, and households receiving social security are covered by the support increase. Saudi workers are affected by the Nitaqat wage rules.
- What
- Monthly support will rise by 500 riyals for eligible groups, while the wage counted for a full Saudi worker under Nitaqat will rise in stages.
- When
- The first wage threshold increase is due six months after the measure begins, followed by a rise to 6,000 riyals 12 months after the first increase. The support increase date is not stated.
- Where
- Saudi Arabia.
- Why
- Economists said the package aims to protect purchasing power and support living stability, while making private-sector jobs more attractive.
This story does not have two clearly opposing sides.
The wage counted for a full Saudi worker under Nitaqat is due to rise to 5,000 riyals.
The wage threshold is due to rise to 6,000 riyals.
- Monthly support increase
- 500 riyals
- First Nitaqat wage threshold
- 5,000 riyals, six months after the measure begins
- Second Nitaqat wage threshold
- 6,000 riyals, 12 months after the first increase
- Previous full-count wage threshold
- 4,000 riyals
- Outlet
- Okaz
1 source
What people are saying
The directive reflects a clear methodology in managing price transformations, taking into account the preservation of the citizen's purchasing power.
Raising the wage standard in Nitaqat gives Saudi citizens a greater incentive to work in the private sector.
An integrated economic package