Saudi royal wage announcement: SAR 5,000 in April 2027, SAR 6,000 in April 2028

25 October 2026: the royal direction

Umm al-Qura, Saudi Arabia’s official newspaper, reported that King Salman, following a proposal from Crown Prince Mohammed bin Salman, directed a package of measures supporting citizens. Its report, credited to the Saudi Press Agency, includes phased increases in the wage required for a Saudi private-sector employee to count fully in an employer’s Nitaqat Saudisation rate.

The report specifies SAR 5,000 for the first phase, followed by SAR 6,000 twelve months later. This article covers the private-sector wage provisions and their related employment-support announcement; other public-sector and household support measures in the royal announcement are separate.

The wage-threshold timeline

Current threshold: SAR 4,000 per month for a Saudi employee to count fully under the ordinary Nitaqat wage-counting rule.

From 25 April 2027: the announced full-count monthly wage threshold rises to SAR 5,000. These are the dates confirmed by HRDF for its aligned Employment Support changes, which it explicitly links to HRSD’s Nitaqat implementation stages.

From 25 April 2028: the announced full-count monthly wage threshold rises to SAR 6,000. These are the dates confirmed by HRDF for its aligned Employment Support changes, which it explicitly links to HRSD’s Nitaqat implementation stages.

These amounts concern full credit in Saudisation calculations. The announcements cited here do not establish an automatic contractual salary increase for every private-sector employee. Employers should review the implementing requirements and any separate occupation-specific localisation rules before making changes.

29 October 2026: HRDF confirms employment-support changes

The Human Resources Development Fund announced corresponding increases in the minimum monthly wage qualifying for its Employment Support product. New applications move from SAR 4,000 to SAR 5,000 on 25 April 2027, and to SAR 6,000 on 25 April 2028.

For existing supported applications, HRDF states that the first change applies with the May 2027 subsidy and the second with the May 2028 subsidy. This distinction matters: the dates for new applications and existing subsidy payments are not identical. The announcement is available in Arabic and English and was updated on 4 November 2026.

What private-sector employers should prepare

Review Saudi employees’ registered wages and the roles included in your localisation calculations. Compare the current position with both announced phases, then assess recruitment, retention and payroll budgets alongside any occupation-specific requirements.

Document agreed salary changes and update employment and payroll records where required. If your establishment uses HRDF Employment Support, distinguish new applications from existing supported employees when planning the April and May transitions. Confirm eligibility and implementation details with HRSD and HRDF rather than assuming the announcement changes every employment contract automatically.