Saudi Arabia has unveiled a package of financial measures for citizens that raises monthly support by SAR 500 for several groups and lifts the salary level at which Saudi workers count as full employees under the Nitaqat Saudization program.
The Saudi Press Agency (SPA) reported on October 25, 2026 that King Salman bin Abdulaziz approved the measures after a proposal from Crown Prince and Prime Minister Mohammed bin Salman.
The package arrives shortly before revised electricity and water consumption tariffs take effect on January 1, 2027.
Who Gets the SAR 500 Increase?
- The monthly allowance rise applies to the following groups of Saudi beneficiaries:
- Civilian government employees on civil service salary scales
- Military personnel
- Employees in government operational programs
- Retirees
- Eligible family members of deceased contributors or retirees under the Social Insurance system
- Families receiving social security benefits, who will get SAR 500 in monthly support
Payments remain subject to the applicable rules and eligibility conditions. According to the government, the extra support is meant to help households absorb the effect of the new utility tariffs.
Nitaqat: Salary Bar Rises in Two Steps
The second part of the announcement targets Saudis working in the private sector. Under Nitaqat, a Saudi employee must earn a minimum monthly salary to count as a full worker toward a company's Saudization quota. That minimum will rise in two stages:
- SAR 5,000, effective six months after the measures begin.
- SAR 6,000, effective twelve months after the first increase takes effect.
The government says the change is meant to encourage better pay for Saudi workers and promote more sustainable private-sector employment.
What Employers Need to Know
Companies employing Saudi nationals will have to factor the new thresholds into their Saudization calculations. A Saudi employee paid below the threshold would no longer count as a full worker toward the quota.
The SAR 5,000 and SAR 6,000 figures are not a legal minimum wage. They only set the pay level needed for a Saudi employee to be counted fully under Nitaqat.
The Reasoning Behind the Package
Officials link the measures to the coming tariff revisions. The allowance increase is designed to ease the financial burden on eligible citizens, while the Nitaqat changes aim to raise salary levels and strengthen long-term job prospects for Saudis in the private sector.
