PayrollData
Saudi Arabia raises Nitaqat wage threshold to SR5,000 in April 2027
Ministry of Human Resources and Social Development sets second phase at SR6,000 from April 2028.
Saudi Arabia will increase the monthly wage floor that determines whether a Saudi national employed in the private sector counts as a full-time worker under the Nitaqat Saudization program. The threshold rises to SR5,000 in April 2027 and to SR6,000 in April 2028. The Ministry of Human Resources and Social Development announced the change on October 25, 2026, with implementation beginning six months later.
Two-phase implementation from April 2027#
The first phase becomes operative on April 25, 2027, setting the monthly wage floor at SR5,000 for a Saudi employee to be included in full when calculating a company's Saudization compliance. The second phase starts on April 25, 2028, lifting that floor to SR6,000. The ministry stated the phased implementation gives private-sector establishments time to adjust to the new requirements. The change modifies the wage level at which a Saudi worker is treated as a full-time employee for the purposes of meeting Nitaqat quotas.
No direct salary increase mandate#
The ministry stated that employers in the private sector are not obligated under this decision to raise the pay of their Saudi staff. The change affects only the threshold used in Saudization calculations under the Nitaqat program. Employees earning below the new thresholds will not count as full-time workers for the purposes of meeting Saudization quotas. The ministry announced the measure on October 25, 2026, with the first phase effective six months later.
Compliance timeline for employers#
Private-sector establishments have until April 25, 2027 to meet the SR5,000 threshold and until April 25, 2028 to meet the SR6,000 threshold. The Ministry of Human Resources and Social Development published the decision on October 25, 2026. The thresholds apply to the calculation of whether a Saudi employee is counted toward a company's Saudization requirements under Nitaqat. The ministry stated the phased approach allows time for adjustment.
Nitaqat program wage floor#
The Nitaqat program uses wage thresholds to determine full-time employee status for Saudization quota purposes. From April 25, 2027, the threshold rises to SR5,000 per month. From April 25, 2028, it rises to SR6,000 per month. The Ministry of Human Resources and Social Development announced the change on October 25, 2026. The decision modifies the minimum wage required for an employee to count toward Saudization calculations without mandating salary increases.
Sources1 source across 1 domain
- saudigazette.com.saSaudi GazetteMinistry of Human Resources and Social Development announced minimum wage threshold increase to SR5,000 in April 2027 and SR6,000 in April 2028, effective six months after October 25, 2026 announcement
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