Saudi Arabia will raise the minimum monthly salary at which a Saudi national counts as a full employee under the Nitaqat Saudization program. The threshold will rise from SAR 4,000 to SAR 5,000 on April 25, 2027, and to SAR 6,000 on April 25, 2028.
The Ministry of Human Resources and Social Development announced the two-phase change on October 25, 2026. The move is designed to improve job quality, expand employment opportunities for Saudi nationals and increase their participation in the private sector.
Nitaqat is Saudi Arabia’s Saudization compliance framework. It measures the share of Saudi nationals in a private-sector establishment and determines access to government services, including visas and work-permit renewals.
From April 2027, a Saudi employee must earn at least SAR 5,000 a month to count as one full worker in an employer’s Saudization calculation. An employee earning between SAR 4,000 and just under SAR 5,000 will count as half a worker.
From April 2028, the full-count threshold rises to SAR 6,000. Employees earning between SAR 5,000 and just under SAR 6,000 will then count as half a worker, while those earning below SAR 5,000 will not count towards the requirement.
The new rule does not automatically require employers to raise salaries. However, companies that want a Saudi employee to count fully towards their Saudization quota will need to pay at least the applicable threshold.
Employers should review current payroll data, identify Saudi staff earning below the new limits and assess the impact on their Nitaqat category. The phased implementation gives employers time to adjust. The first increase takes effect six months after the announcement, while the second gives businesses another year to align salaries and workforce plans with the higher benchmark.
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