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On 25 October 2026 the Saudi Press Agency announced a package of support measures directed by the Custodian of the Two Holy Mosques, alongside electricity and water tariff changes that take effect on 1 January 2027. For private-sector employers, the key change is to Nitaqat, the Saudisation programme run by the Ministry of Human Resources and Social Development (HRSD): Saudi employees will need to earn more to count fully towards an employer's Saudisation quota.
In short: the minimum monthly wage a Saudi employee must earn to count fully towards Nitaqat quotas will rise to SAR 5,000 six months after the support measures take effect, and to SAR 6,000 twelve months after that first increase. Today the threshold is SAR 4,000. Employers that rely on Saudi staff paid below these levels to meet their quota should plan now.
How the threshold changes
| Stage | Monthly wage for a Saudi employee to count fully under Nitaqat |
|---|---|
| Current rule (since the HRSD decision of November 2020) | SAR 4,000. A Saudi earning from SAR 3,000 up to SAR 4,000 counts as half a worker; below SAR 3,000 does not count |
| First increase: six months after the support measures take effect | SAR 5,000 |
| Second increase: twelve months after the first increase | SAR 6,000 |
The announcement does not say whether the half-worker band will also change. HRSD is expected to issue the implementing details, and we will update this note when it does. Higher thresholds already apply to some professions under their own Saudisation decisions.
Contracts must also be on Qiwa
Since 15 April 2026, HRSD has calculated Saudisation rates from employment contracts documented electronically on the Qiwa platform. A Saudi employee whose contract is not documented on Qiwa is not counted, whatever their salary.
What employers should do now
- List Saudi employees paid below SAR 5,000 and below SAR 6,000 a month, and model the effect on your Nitaqat band at each stage
- Budget for salary increases, including the knock-on cost of GOSI contributions and end-of-service benefits
- Check that every Saudi employee's contract is documented on Qiwa
- Review any profession-specific Saudisation decisions that apply to your business
- Watch for HRSD's implementing decision confirming the dates
How Veridian can help
Our HR consulting practice reviews Saudisation positions, models payroll costs and updates employment contracts for groups with staff in the Kingdom, working with locally licensed professionals where formal representation is needed. For tax in the Kingdom, see our KSA VAT, zakat and e-invoicing guide. Book a consultation.
Official sources
- Saudi Press Agency — The Custodian of the Two Holy Mosques directs citizen support measures ahead of 2027 electricity and water tariffs, 25 October 2026
- Saudi Press Agency — Human Resources Minister issues decision to raise minimum wage for Saudis registered in Nitaqat to SAR 4,000, 23 November 2020
- HRSD — Electronic documentation of employment contracts through Qiwa for Saudisation rates, effective 15 April 2026
Frequently asked questions
What salary must a Saudi employee earn to count fully under Nitaqat?
Currently SAR 4,000 a month. Under the measures announced on 25 October 2026, this rises to SAR 5,000 six months after the measures take effect, and to SAR 6,000 twelve months after that.
Do Saudi employees need a Qiwa contract to count under Nitaqat?
Yes. Since 15 April 2026 HRSD calculates Saudisation rates from employment contracts documented electronically on the Qiwa platform.
This guide is general information based on the law as we understand it on the date shown, not advice for your situation. Tax rules change often — please speak to us before acting on it. See our disclaimer.