Saudi Arabia’s planned increase in the minimum salary threshold used to count Saudi nationals towards private-sector Saudisation targets will also cover part-time employees, Deputy Minister of Human Resources and Social Development for the Labour Sector Dr Abdullah Abu Thaneen has confirmed.
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Speaking to Al Arabiya Business, Abu Thaneen said the measure would apply across categories of Saudi employees, including those working under part-time arrangements. He added that raising wage thresholds was intended to encourage greater participation by Saudi nationals in the labour market and support more sustainable employment in the private sector.
The measure forms part of a package of royal directives announced by King Salman bin Abdulaziz Al Saud, following a proposal by Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud. The package includes financial support for citizens alongside changes to the minimum salary used to calculate Saudi participation under the Nitaqat Saudisation programme.
Minimum salary threshold to rise in two stages
Under the announced measures, the minimum monthly salary required for a Saudi employee to count as a full worker towards a company’s Saudisation rate will initially rise to SAR 5,000.
Implementation is scheduled to begin six months after the measure takes effect. The threshold is then set to increase to SAR 6,000, 12 months after the first increase begins, according to the announcement.
The Nitaqat programme classifies private-sector establishments according to their employment of Saudi nationals. The revised salary threshold is intended to strengthen wage levels and encourage companies to maintain sustainable employment for Saudi workers.
Abu Thaneen’s clarification that part-time Saudi employees are included broadens the scope of the measure, although the precise calculation of an individual worker’s contribution to Saudisation requirements will depend on the applicable programme rules.
Monthly support for employees and retirees
The wider package also includes a monthly allowance increase of SAR 500 for eligible civil and military employees covered by the civil service salary scale and specified employment-programme arrangements.
Retirees and eligible family members of deceased contributors or retirees covered by the social insurance system are also included under the announced support measures, subject to the relevant rules and eligibility conditions.
In addition, families receiving social security benefits are set to receive a monthly subsidy of SAR 500, in accordance with the mechanisms governing the programme.
The measures are intended to help eligible households manage the financial impact of planned amendments to electricity and water tariffs, which are scheduled to begin on January 1, 2027.
The announcement did not provide a complete breakdown of the number of people expected to benefit from each measure or the total fiscal cost of the support package.
Labour market participation remains a central objective
The wage-threshold changes form part of Saudi Arabia’s broader efforts to strengthen national employment in the private sector. By adjusting the salary level required for a Saudi employee to count fully towards a company’s Saudisation rate, the authorities aim to encourage employers to offer more sustainable pay arrangements.
The inclusion of part-time workers is particularly relevant to employees and businesses using flexible working arrangements. However, employers will need to follow the official implementation rules to determine how individual contracts and working hours affect their Saudisation calculations.
The phased increase from SAR 5,000 to SAR 6,000 also gives businesses a defined transition period before the higher threshold applies.
Further details on implementation dates and administrative requirements will be important for employers preparing their workforce plans and for Saudi employees seeking to understand how the revised rules affect their employment status.
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