Saudi Arabia to Raise Nitaqat Salary Thresholds: SAR 5,000 From 25 April 2027, SAR 6,000 From 25 April 2028
Updated: 1 hour ago
RIYADH, 5 November 2026 – Saudi Arabia has confirmed a two-phase increase in the minimum monthly salary that a Saudi national must earn for an employer to receive full credit for that employee under the Nitaqat Saudization programme. Effective 25 April 2027, the threshold rises from the current SAR 4,000 to SAR 5,000 per month, and from 25 April 2028, it rises again to SAR 6,000 per month. The decision was issued on 25 October 2026 as a Royal Directive, with the Ministry of Human Resources and Social Development (MHRSD) implementing the change through the Nitaqat framework. The official Saudi Press Agency announcement confirms that the first phase takes effect six months after the decision, with the second phase following twelve months later. The Human Resources Development Fund (HRDF) has aligned its Employment Support product with the same schedule, confirming that the minimum qualifying wage for new applications will rise from SAR 4,000 to SAR 5,000 on 25 April 2027 and to SAR 6,000 on 25 April 2028, with existing applications adjusted from the May 2027 and May 2028 subsidy payments respectively.
The change does not legally require private-sector employers to increase the salaries of their Saudi employees. Instead, it adjusts the salary threshold used to determine whether a Saudi employee is counted as a full worker when calculating a company's Saudization percentage under Nitaqat. Employers can use the MHRSD's official Nitaqat Calculator to model their current or expected classification based on workforce numbers and salary levels, and can access the Qiwa platform through the calculator to review their establishment's sub-economic activity and Saudization position.
How the Two-Phase Threshold Works
Under the current rules, a Saudi employee earning SAR 4,000 or more per month is counted as one full worker in Nitaqat calculations. A Saudi employee earning between SAR 3,000 and just under SAR 4,000 counts as half a worker, while anyone earning below SAR 3,000 is not counted at all. From 25 April 2027, the full-worker threshold rises to SAR 5,000. A Saudi employee earning between SAR 4,000 and SAR 4,999.99 will be counted as half a worker rather than a full worker, and anyone earning below SAR 4,000 drops out of the Saudization count entirely. From 25 April 2028, the full-worker threshold rises to SAR 6,000. At that stage, a Saudi employee earning between SAR 5,000 and SAR 5,999.99 will be counted as half a worker, while those earning SAR 6,000 or more will count as a full worker. Anyone earning below SAR 5,000 will no longer be counted. This tiered counting mechanism means the change affects not only employers paying exactly SAR 4,000 but also those with salary bands that fall between the old and new thresholds. Over the two phases, the bar for a full Nitaqat count rises by 50% compared with the current level.
The decision covers five categories of workers in private-sector establishments: full-time employees, part-time employees, workers under flexible work arrangements, part-time students, and persons with disabilities who are capable of working. Deputy Minister of Human Resources and Social Development for Labour Affairs Dr. Abdullah Abuthnain confirmed that these five groups fall within the scope of the wage threshold increase, and that establishments have been granted a six-month grace period before the first phase and a further twelve-month interval before the second phase to review wage levels and make the necessary arrangements.
Profession-Specific Thresholds Remain in Force
The general threshold increase applies alongside existing profession-specific Nitaqat salary requirements that are already higher than the general minimum. Engineering roles are subject to a SAR 8,000 threshold, marketing roles to SAR 5,500, and housing supervisor roles to SAR 5,000. These profession-specific thresholds remain in place and are not replaced by the general SAR 5,000 and SAR 6,000 increases. For employers in these categories, the relevant question is whether their salary structures already meet the profession-specific threshold, because the general increase does not lower those requirements. In practice, employers in engineering, marketing, and housing supervision may already be paying above the new general thresholds, but they should still verify that their salary bands satisfy the applicable profession-specific rules rather than relying solely on the general Nitaqat minimum.
Why the Government Is Raising the Threshold
The salary threshold increase is part of a broader policy direction aimed at improving the quality of Saudization, not merely the quantity of Saudi nationals employed. A labour and human resources expert quoted by Okaz explained that raising the calculated minimum wage in Nitaqat represents a step toward enhancing the quality of localization in the private sector, achieving job stability for Saudis, and elevating the level of jobs and wages. The expert noted that this shifts localization from a focus on meeting numerical quotas to an emphasis on job quality and wage levels, which helps reduce "fake Saudization" and encourages employers to provide more attractive and sustainable employment opportunities. The deputy minister emphasised that the decision will strengthen the economic participation of Saudi nationals in the labour market by making private-sector jobs more attractive, particularly to job seekers and those seeking to enter the workforce, and that the ministry continues to develop policies aimed at increasing citizen participation, improving wages, and enhancing the working environment.
The phased approach is designed to give private-sector establishments time to review their wage structures and link them to job nature, responsibilities, experience, and competencies. The first phase begins six months after the 25 October 2026 announcement, and the second phase follows twelve months later, giving employers a full eighteen months to prepare for the final threshold.
HRDF Employment Support Aligns with Nitaqat Threshold
The Human Resources Development Fund has aligned its Employment Support product with the Nitaqat threshold increase, confirming that the minimum qualifying wage for the subsidy will rise on the same schedule. For new applications, the threshold moves from SAR 4,000 to SAR 5,000 on 25 April 2027, and to SAR 6,000 on 25 April 2028. For existing applications, the first increase takes effect with the subsidy for May 2027 and the second with the subsidy for May 2028. HRDF will continue to cover up to 50% of an eligible Saudi employee's monthly wage, subject to a maximum subsidy of SAR 3,000 per employee per month, under the product's terms and conditions. The Fund has framed the alignment as part of efforts to improve job quality and stability, help Saudi workers compete for jobs, and increase their participation in the labour market.
What Employers Should Do Now
Employers should not wait until April 2027 to assess the impact of the change. The first practical step is to review the salaries of all Saudi employees and identify those earning between SAR 4,000 and SAR 4,999.99, because those employees will shift from full-worker to half-worker counting from 25 April 2027 unless their salaries are adjusted or their roles are restructured. Employers should also identify employees earning between SAR 5,000 and SAR 5,999.99, who will face the same shift from 25 April 2028. The second step is to model the revised Saudization percentage using the MHRSD's official Nitaqat Calculator, to determine whether the establishment would remain in its current Nitaqat band or fall into a lower band. A fall in band can affect access to services such as work permit issuance and transfer, so the financial and operational consequences can extend beyond the salary bill.
Where modelling shows that the establishment would fall below the required Saudization ratio, employers have several options. They can adjust salaries for affected Saudi employees to bring them above the new threshold, restructure roles to consolidate duties and reduce the number of employees falling into the half-worker band, or accelerate Saudi hiring to offset the loss of full-worker credit. Each option carries different cost and workforce implications, and the appropriate mix will depend on the employer's sector, size, and current Nitaqat classification. Employers in engineering, marketing, and housing supervision should pay particular attention to the profession-specific thresholds, because those requirements may already impose a higher salary floor than the general Nitaqat minimum. The official HRDF announcement and the Saudi Press Agency report both confirm that the phased timeline is intended to give private-sector establishments time to adjust, which means employers that begin planning in late 2026 will have a full six months before the first phase takes effect.
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Key Dates at a Glance
Date | Change | Effect on Nitaqat Counting |
Current (until 24 April 2027) | SAR 4,000 full-worker threshold | Employees earning SAR 4,000+ count as one full worker; SAR 3,000–3,999.99 count as half |
25 April 2027 | General threshold rises to SAR 5,000 | Employees earning SAR 5,000+ count as one full worker; SAR 4,000–4,999.99 count as half; below SAR 4,000 not counted |
25 April 2028 | General threshold rises to SAR 6,000 | Employees earning SAR 6,000+ count as one full worker; SAR 5,000–5,999.99 count as half; below SAR 5,000 not counted |
May 2027 | HRDF existing support applications adjusted | First phase applies to support payments for May 2027 |
May 2028 | HRDF existing support applications adjusted | Second phase applies to support payments for May 2028 |
Profession-specific thresholds remain in force throughout: engineering SAR 8,000, marketing SAR 5,500, and housing supervisors SAR 5,000.
Conclusion
The Nitaqat salary threshold increase is a structural change to how Saudization is measured, not a simple wage mandate. Employers that understand the half-worker counting mechanism, model their exposure early, and align their salary structures with the new thresholds will be better positioned to maintain their Nitaqat classification and avoid unexpected compliance costs. The two-phase timeline provides a planning window, but the first phase begins in less than six months from the date of this update, making early review essential. Employers should also monitor the HRDF Employment Support adjustments, because the subsidy threshold moves on the same schedule and can partially offset the cost of salary adjustments for eligible Saudi employees. The official Nitaqat Calculator and the HRDF Employment Support announcement provide the authoritative reference points for employers preparing for the April 2027 and April 2028 changes.
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