Saudi Arabia announces salary increase in private sector

According to the Human Resource Development Fund (HADAF), the minimum salary for Saudi employees has increased to SR 4,000 from SR 3,200 starting September 2023.

Minimum wages for Saudis

According to the Ministerial decision of Eng. Ahmed bin Sulaiman Al-Rajhi;

• A Saudi with a minimum wage of SR 4,000 would be treated as one employee in Nitaqat.
• A Saudi with an SR 3,000 to SR 3,999 salary would be treated as half an employee in Nitaqat.
• A Saudi with less than SR 3,000 wages would not be counted for the Nitaqat calculation.
• Once a part-time Saudi employee completes 168 hours in a company, he would be counted as 1/3rd of an ordinary Saudi employee in Nitaqat.

Minimum Wages for Expats

Saudi Gazette reported 2014 that the Ministry of Labor of Saudi Arabia is considering fixing the minimum salary for Saudis in the private sector.

• Minimum Salary for Saudis: SR 5,300
• Minimum Salary for Expats in Saudi Arabia: SR 2,500

Although this proposal was approved and planned to be implemented soon after the wage protection program is fully implemented, no minimum salary or wages are fixed for expatriates in Saudi Arabia.

However, considering the recent reforms in Saudi Arabia, there is a possibility that the government will also fix the minimum wages for expats.

Source: Al Arabiya