HR Ministry: Five worker categories are covered by Nitaqat wage hike to SR6,000

RIYADH — Deputy Minister of Human Resources and Social Development for Labor Affairs Dr. Abdullah Abuthnain revealed that the decision to increase the minimum wage required for a Saudi employee to be counted fully under Nitaqat Saudization program covers five categories of workers in private sector establishments. Abuthnain stated that the five categories covered by the decision are full-time employees, part-time employees, workers under flexible work arrangements, part-time students, and people with disabilities who are capable of working, according to Al Arabiya Net. The decision will be implemented in two phases. The first phase would take effect on April 25, 2027, with the minimum wage at SR5,000, while the minimum wage would increase to SR6,000 in the second phase, which will begin on April 25, 2028. Abuthnain noted that private sector establishments have been granted a six-month grace period to prepare for the implementation of the first phase, followed by a 12-month interval before the second phase takes effect. This will enable establishments to review wage levels and job opportunities offered to Saudi nationals and make the necessary arrangements to meet the requirements of each phase. Abuthnain explained that increasing the minimum wage threshold for Saudization calculations aims to improve job quality, enhance employment stability, and raise the income levels of Saudi workers, thereby contributing to the development of national talent and expertise. The deputy minister emphasized that the decision will strengthen the economic participation of Saudi nationals in the labor market by making private sector jobs more attractive, particularly to job seekers and those seeking to enter the workforce. He added that the ministry continues to develop policies and initiatives aimed at increasing citizen participation in the labor market, improving wages, and enhancing the working environment.