King Salman orders SR500 allowance increase, raises minimum wage

RIYADH — Custodian of the Two Holy Mosques King Salman has ordered a series of measures to support Saudi citizens, including a SR500 increase in monthly allowances for eligible beneficiaries and higher wage thresholds for Saudi employees under the Nitaqat Saudization program. The measures, issued based on a proposal presented by Crown Prince and Prime Minister Mohammed bin Salman, coincide with adjustments to electricity and water consumption tariffs announced by the Saudi Energy Company and the National Water Company, effective January 1, 2027. Under the directives, monthly allowances will be increased by SR500 for eligible civilian and military employees covered by civil service pay scales and employment programs, as well as retirees and family members of deceased contributors or retirees covered by the Social Insurance Law. Families benefiting from the social security system will also receive additional monthly support of SR500, subject to applicable regulations and procedures.The financial support measures are intended to ease the impact of the electricity and water tariff adjustments on citizens. The directives also include measures to raise wage levels for Saudi employees in private-sector establishments. Under the Nitaqat program, the minimum monthly wage required for a Saudi employee to count fully toward Saudization quotas will increase to SR5,000, effective six months after the measure takes effect. The threshold will subsequently rise to SR6,000, effective 12 months after the first increase is implemented. The wage adjustments are intended to improve salary levels and support sustainable employment opportunities for Saudi citizens in the private sector.