Saudi Arabia Lists 5 Categories of Workers to Benefit from New Minimum Wage Increase
- Saudi Arabia named five worker categories that will benefit from the new minimum wage threshold under the Saudization programme
- The salary threshold for private-sector Saudi employees to count fully toward Saudization quotas will rise in two stages after the policy takes effect
- King Salman ordered the support measures following a proposal by Crown Prince Mohammed bin Salman
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Saudi Arabia has named five categories of private-sector workers that will be covered under a new minimum wage threshold tied to its Saudization employment programme, as the kingdom moves to boost Saudi nationals' participation in the labour market.
Abdullah Abuthnain, Vice Minister of Human Resources and Social Development (HRSD) for Labour, confirmed the details in a recent interview with Al Arabiya TV. He said the regulatory rules for each category would be announced at a later date.
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Saudi Arabia: 5 worker categories covered by new threshold
According to Abuthnain, the five occupational categories in the private sector that will fall under the updated minimum wage threshold for Saudization purposes are:
1. Full-time employees.
2. Part-time employees.
3. Flexible-work employees.
4. Students working part-time.
5. Persons with disabilities who can work.
Abuthnain said the decision is aimed at improving job quality, strengthening employment stability, raising workers' incomes, and increasing the number of Saudi nationals active in the private sector.
Saudi Arabia: How the salary threshold will rise
The directive was issued by King Salman bin Abdulaziz Al Saud following a proposal by Crown Prince and Prime Minister Mohammed bin Salman. It came alongside announcements by Saudi Energy Co. and the National Water Company (NWC) of changes to electricity and water tariffs set to take effect on January 1, 2027.
Under the Nitaqat programme, which governs Saudization quotas, the monthly salary threshold for a Saudi private-sector employee to count fully toward a company's Saudization rate will increase in two stages.
The threshold will first rise to SAR 5,000 (roughly ₦1.7 million) six months after the changes take effect, and then climb further to SAR 6,000 (roughly ₦2.1 million) an additional 12 months later.
The Nitaqat system requires private-sector companies operating in Saudi Arabia to employ a minimum proportion of Saudi nationals, and the salary threshold determines whether a Saudi employee counts as a full unit toward that quota.
Legit.ng reported that Saudi Arabia had unveiled a new digital entry service for citizens of six countries and other visitors.
In a related story, Legit.ng reported that Saudi Arabia had raised the wages for private sector workers.
Saudi's new financial support for retirees
Meanwhile, Legit.ng previously reported that Saudi Arabia had announced new financial support for retirees.
The directive, issued on October 25, 2026, in Riyadh, followed a proposal by Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud.
It was announced alongside notices from Saudi Energy and the National Water Company regarding the forthcoming tariff changes.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
