Arabia Revises Wage Threshold for Five Worker Categories
Saudi Arabia will raise its Nitaqat wage threshold to SR6,000 by 2028, covering five worker categories and changing how private-sector employers meet Saudisation requirements.
Saudi Arabia's Ministry of Human Resources and Social Development has announced revised wage thresholds covering five categories of Saudi private-sector workers, with changes scheduled to take effect in April 2027 and April 2028.
The decision will increase the minimum monthly salary required for a Saudi national to count fully towards an employer's Saudisation targets under the Nitaqat programme.
The threshold will rise to SR5,000 on 25 April 2027 before increasing to SR6,000 on 25 April 2028, giving private-sector establishments time to prepare for the revised requirements.
Five Worker Categories Covered
Deputy Minister of Human Resources and Social Development for Labour Affairs Abdullah Abuthnain confirmed that the changes will apply to five employment categories.
These include full-time employees, part-time employees, workers under flexible work arrangements, students working part-time and people with disabilities who are capable of working.
The inclusion of different employment arrangements reflects the government's focus on increasing Saudi participation across the private-sector workforce.
Abuthnain said the revised thresholds are intended to improve job quality, strengthen employment stability, raise incomes and encourage greater participation by Saudi nationals in the labour market.
However, the ministry has indicated that the detailed regulatory rules governing each worker category will be announced separately.
Phased Implementation Gives Employers Time to Adjust
The new thresholds will be introduced in two stages.
The first phase, beginning on 25 April 2027, will raise the salary requirement for full recognition under Nitaqat to SR5,000.
A further increase to SR6,000 will follow on 25 April 2028.
The phased approach provides employers with a six-month preparation period before the first increase, followed by another 12 months before the second phase.
During this period, organisations may need to review employee compensation, recruitment practices and workforce planning to understand how the revised criteria affect their Saudisation compliance.
The ministry has clarified that the decision does not automatically require companies to increase employee salaries. Instead, it changes the wage benchmark used to determine whether Saudi employees count fully towards an establishment's Saudisation requirements.
Implications for Employees and HR Teams
For Saudi employees, the revised policy establishes higher salary benchmarks associated with full recognition under Nitaqat.
While the decision does not guarantee individual pay increases, it may encourage employers to reassess compensation structures when planning their national workforce requirements.
For HR departments, the changes introduce additional considerations when managing employee classifications, salary structures and Saudisation targets.
Employers will also need to monitor the forthcoming regulations governing part-time workers, flexible employees, working students and eligible people with disabilities.
The distinction between employment categories will be particularly relevant when calculating workforce participation and ensuring compliance with the revised framework.
Strengthening Saudi Workforce Participation
The revised thresholds form part of Saudi Arabia's wider efforts to increase national employment and improve the quality of private-sector job opportunities.
By linking full Saudisation recognition to higher wage benchmarks, the policy aims to encourage better employment conditions while supporting the development of national talent.
Its practical impact will depend on how employers adjust their workforce strategies and how the ministry implements the category-specific regulations.
With the first phase scheduled for April 2027, private-sector organisations have a defined period to assess their existing employment arrangements and prepare for the changes.
Sources: People Matters Global, Saudi Gazette, Argaam, Saudi Ministry of Human Resources and Social Development
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