Saudi Arabia to raise minimum wage threshold to SR5,000 in April 2027, and SR6,000 in April, 2028

RIYADH — Saudi Arabia will raise the minimum monthly wage required for Saudi private-sector employees to be counted as full-time workers under the Nitaqat Saudization program to SR5,000 in April 2027 and SR6,000 in April 2028. According to details released by the Ministry of Human Resources and Social Development, the decision will be implemented in two phases, beginning six months after its announcement on October 25, 2026. The first phase will take effect on April 25, 2027, raising the minimum monthly wage threshold for full inclusion in Saudization calculations to SR5,000. The second phase will begin on April 25, 2028, increasing the threshold to SR6,000. The ministry clarified that the decision does not require private-sector employers to directly increase the salaries of Saudi employees. Instead, it adjusts the minimum wage threshold used to determine whether a Saudi employee is counted in full toward a company’s Saudization requirements. The phased implementation gives private-sector establishments time to adjust to the new requirements.