Saudi Arabia will raise the minimum monthly wage threshold for Saudi employees in the private sector to SR5,000 (N1,797,781.86) in April 2027 and to SR6,000 (N2,157,338.23) in April 2028 under its Nitaqat Saudization program.
According to the Ministry of Human Resources and Social Development, the decision announced on October 25, 2026, will be implemented in two phases, six months after the announcement.
The first phase will take effect on April 25, 2027, raising the minimum wage required for a Saudi worker to be counted as a full-time employee in Saudization calculations to SR5,000.
The second phase will begin on April 25, 2028, when the threshold will be increased to SR6,000.
The ministry clarified that the decision does not compel private-sector employers to directly increase salaries of Saudi employees. It only adjusts the wage limit used to determine whether a Saudi employee is counted in full towards a company’s Saudization quota.
It added that the phased implementation is to give private-sector establishments enough time to adjust to the new requirements.