Saudi Arabia Announces New Minimum Wage for Private Sector Workers, Increases Monthly Allowance

• King Salman has approved a package of financial support measures tied to upcoming electricity and water tariff changes
• Government employees, retirees, and social security recipients are among those set to receive additional monthly payments
• Private sector workers face a phased minimum wage increase under the kingdom's Saudization employment framework

Saudi Arabia's government has announced a broad package of financial support measures for citizens, coinciding with planned adjustments to electricity and water consumption tariffs by Saudi Energy and the National Water Company, which are set to take effect on 1 January 2027.

King Salman bin Abdulaziz Al Saud approved the measures on October 25, 2026, in Riyadh, following a proposal by Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud, according to the Saudi Press Agency.

Saudi Arabia: Monthly allowance increase

Under the directive, civilian and military personnel on civil service salary scales, as well as those on operational programme contracts, will receive a SAR500 (approximately ₦180,383) increase in their monthly allowances.

Retirees and eligible beneficiaries of deceased subscribers or retirees under the Social Insurance system are also covered by this provision.

Families currently receiving Social Security benefits will additionally be entitled to a monthly stipend of SAR500 (approximately ₦180,383), to be administered through existing regulatory channels. The government described the payments as a measure to cushion the financial effect of the forthcoming tariff adjustments on households.

Saudi Arabia: New minimum wage rules for private sector

In a separate but related move, the minimum wage threshold under the Nitaqat Saudization programme will be raised for Saudis employed in the private sector.

Six months after the support measures come into force, the qualifying minimum wage will increase to SAR5,000 (approximately ₦1,803,830). A further rise to SAR6,000 (approximately N2,164,596) will follow twelve months after the first adjustment.

The Nitaqat programme governs the proportion of Saudi nationals that private companies are required to employ.

By lifting the minimum wage threshold, the government aims to improve earnings for Saudi workers in the private sector while strengthening long-term employment sustainability for citizens within private businesses.

Legit.ng reported that Saudi Arabia had set one key requirement for foreigners seeking permanent residency.

In a related story, Legit.ng reported that Saudi Arabia had published the one-time fee that foreigners must pay to get its special residence permit.

Fee for securing Saudi's renewable, permanent residency

Meanwhile, Legit.ng previously reported that Saudi Arabia had shared the one-time fee that foreigners need to pay to secure its renewable and permanent residency.

The details appear on the Saudi Premium Residency portal, which outlines two main pathways for foreign nationals looking to settle legally in the country.

This fee is charged annually, meaning holders must continue paying to keep their residency active.