King Salman approves monthly support allowances of SR500 for eligible citizens as the Kingdom prepares to adjust electricity and water tariffs from January 2027.

RIYADH: Saudi Arabia has announced a phased increase in the minimum wage required for Saudi employees to count towards Saudisation targets under the Nitaqat programme, with the threshold set to rise to SR6,000.

Under the announced measures, the minimum wage will initially increase to SR5,000 after six months and subsequently rise to SR6,000 twelve months after the first increase. The changes aim to raise wage levels and support sustainable employment for Saudi nationals in the private sector, the Saudi Press Agency reported.

Custodian of the Two Holy Mosques King Salman has also approved monthly allowances of SR500 for eligible citizens to help offset adjustments to electricity and water consumption tariffs, scheduled to take effect on January 1, 2027.

The support package covers civilian and military employees under civil service pay scales and employment programmes, as well as eligible retirees and family members of deceased subscribers or retirees covered by the social insurance system.

Families receiving benefits under the social security system will also receive a monthly allowance of SR500, subject to applicable regulations and procedures.

The measures follow recommendations by Crown Prince and Prime Minister Mohammed bin Salman and are intended to ease the financial impact of higher utility costs.

The Nitaqat programme is designed to encourage private-sector businesses to employ Saudi nationals. The revised wage threshold will determine whether Saudi employees qualify to be counted towards companies’ Saudisation ratios.

The phased increase is expected to support the Kingdom’s efforts to improve employment opportunities and strengthen the participation of Saudi citizens in the private sector.