King Salman orders SR5,000 minimum wage under Nitaqat
King Salman ordered a monthly allowance of SR500 for Saudi employees to help with changes to water and electricity tariffs. New rules for the Nitaqat program in private sector establishments now set a minimum wage of SR5,000 for an employee to count toward the full Saudization ratio. This requirement starts in six months. After another twelve months, the minimum wage will increase to SR6,000. These steps follow recommendations from Crown Prince and Prime Minister Mohammed bin Salman. The measures aim to provide support to citizens.
RIYADH — Custodian of the Two Holy Mosques King Salman has issued orders to give a monthly allowance of SR500 for Saudi employees to cope with the adjustments in the electricity and water consumption tariffs. The minimum wage, required for a Saudi employee to be counted for full Saudization ratio under the Nitaqat program in the private sector establishments, has been set at SR5,000, effective after six months. This minimum wage will subsequently rise to SR6,000 twelve months after the initial increase. These are part of a series of measures issued by the King, in line with the recommendation of Crown Prince and Prime Minister Mohammed bin Salman to support citizens. The measures coincide with the announcement by the Saudi Energy Company and the National Water Company of adjustments to electricity and water consumption tariffs, effective January 1, 2027. The support package includes an increase of SR500 in the monthly allowance for civilian and military employees covered by civil service pay scales and employment programs, as well as for retirees and family members of deceased subscribers or retirees covered by the social insurance system. In addition, families benefiting from the social security system will receive a monthly allowance of SR500, in accordance with established mechanisms and regulations. These measures are intended to ease the financial impact of the electricity and water tariff adjustments. The Nitaqat minimum wage increase is aimed at raising wage levels and promoting the sustainability of Saudi employment in the private sector, the Saudi Press Agency reported.