Saudi Arabia Announces Private Sector Wage Increases

5 September 2023

Saudi Arabia Announces Private Sector Wage Increases

Saudi Arabia has announced significant changes to salaries for some employees in the private sector. The Human Resources Development Fund (HADAF) said the minimum salary for citizens working in the private sector will increase to SR4,000 ($1,066).

The existing minimum salary for qualifying individuals is SR3,200 ($853), and the new wages, subsidized by HADAF, will be introduced from Tuesday, September 5.

In a statement, HADAF said the new rules are designed to enhance the national labor market. The Saudi human resources fund announced the salary increase as part of an ongoing initiative to support employers with the recruitment of workers in Saudi Arabia.

Other updates include changes to the period of time required for submitting a request for support, following the registration of employee details for social insurance.

Companies may now apply to receive salary support for employees just 90 days after the worker is registered. Effectively, an employer will be eligible to pay an employee’s wages in full for the first 90 days following a successful recruitment. However, between 91 and 180 days, an employer in Saudi Arabia can apply for support paying wages of citizens. However, HADAF also confirmed it will not accept salary support requests submitted after 180 days of the employee’s registration.

Explore these new employment prospects in Saudi Arabia with Guildhall’s executive search and recruitment services.

 

5 September 2023

Saudi Arabia Announces Private Sector Wage Increases

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