Politics · Saudi Arabia · 13 hrs ago
Saudi Arabia to Raise Minimum Wage in Employment Support Programme
Saudi Arabia’s Human Resources Development Fund will raise the wage floor in its Employment Support programme, which helps private-sector employers hire Saudi workers.
The minimum monthly wage covered for new applications will rise from 4,000 to 5,000 riyals on April 25, 2027.
For existing support applications, the first increase will apply from support payments for May 2027.
The floor for new applications will then rise to 6,000 riyals on April 25, 2028, with the change for existing applications applying from May support payments.
The fund will continue covering up to 50% of a worker’s monthly wage, with a maximum contribution of 3,000 riyals, subject to its rules.
The changes are intended to encourage private companies to hire Saudi workers and support more stable employment.
Saudi Arabia’s Human Resources Development Fund will raise the minimum wage covered by its Employment Support product in two stages.
The minimum will rise from 4,000 riyals to 5,000 riyals a month on 25 April 2027.
It will rise from 5,000 riyals to 6,000 riyals a month on 25 April 2028.
The changes will apply to new applications from those dates and to existing support applications from May 2027 and May 2028, respectively.
The fund will continue to cover up to 50% of eligible Saudi employees’ monthly wages, capped at 3,000 riyals a month.
- Who
- Saudi Arabia’s Human Resources Development Fund.
- What
- It will raise the minimum wage covered by its Employment Support product in two stages.
- When
- The changes begin on 25 April 2027 and 25 April 2028.
- Where
- Saudi Arabia.
- Why
- The fund says the product encourages private-sector employers to hire Saudi nationals and supports job opportunities and employment stability.
This story does not have two clearly opposing sides.
The fund announced the planned two-stage increase to the minimum supported wage.
The minimum for new applications will rise from 4,000 riyals to 5,000 riyals a month.
The first increase will apply to existing support applications.
The minimum for new applications will rise from 5,000 riyals to 6,000 riyals a month.
The second increase will apply to existing support applications.
- First-stage minimum
- 5,000 riyals a month from 25 April 2027
- Second-stage minimum
- 6,000 riyals a month from 25 April 2028
- Existing applications, first stage
- Increase applies from May 2027
- Existing applications, second stage
- Increase applies from May 2028
- Wage support
- Up to 50% of monthly wages, capped at 3,000 riyals a month