Saudization minimum wage to climb 50% over 18 months in a bid to revive stalled hiring in lower-skilled jobs

Saudi Arabia plans to increase the minimum wage for Saudi workers to SAR 5,000 by April 2027, as part of its Saudization efforts aimed at enhancing local employment.

As part of its ongoing Saudization strategy, Saudi Arabia is set to increase its minimum wage for local employees to SAR 5,000 starting April 25, 2027, with another increase to SAR 6,000 scheduled for the following year. This initiative is aimed at reinvigorating hiring in lower-skilled job sectors that have stalled due to tighter labor market conditions.

The Human Resources Development Fund emphasizes this wage hike will incentivize private sector employers to focus on hiring Saudi nationals and comply with national labor regulations. The incremental wage increases are part of a broader citizen-support package that includes measures to address the economic impacts of inflation and bolster job opportunities for Saudis.

Source: EnterpriseAM – https://enterpriseam.com/menaplus/2026/11/02/saudization-minimum-wage-to-climb-50-over-18-months-in-a-bid-to-revive-stalled-hiring-in-lower-skilled-jobs