Saudi Arabia has announced a monthly allowance of 500 Saudi riyals for eligible employees and a phased increase in the minimum wage for Saudi nationals working in the private sector under the Nitaqat programme.
According to the announcement, King Salman bin Abdulaziz has ordered the monthly allowance to help Saudi employees cope with the impact of changes in electricity and water tariffs.
Under the revised policy, the minimum wage for Saudi employees counted towards Saudization quotas under the Nitaqat programme will be set at 5,000 riyals after six months. It will subsequently increase to 6,000 riyals 12 months after the initial increase.
Nitaqat is a government programme administered by Saudi Arabia’s Ministry of Human Resources and Social Development to monitor the employment of Saudi nationals in private-sector companies.
The measures follow recommendations by Crown Prince and Prime Minister Mohammed bin Salman to support citizens amid changes in utility prices.
The Saudi Electricity Company and the National Water Company have announced tariff changes scheduled to take effect on January 1, 2027.
The relief package includes a monthly allowance increase of 500 riyals for eligible civilian and military employees covered by civil service pay scales and employment programmes.
Retirees and eligible family members of deceased subscribers or retired employees covered by the social insurance system will also benefit from the support measures.
The announcement comes as the kingdom prepares to implement changes to electricity and water tariffs, with the allowance and phased minimum-wage increases intended to provide financial support to eligible Saudi citizens.
