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Saudi Arabia Increases Minimum Wage for Private Sector Workers

Authorities declared on Monday that the beginning salaries of Saudi nationals employed in the private sector will go up from SR 3,200 ($853) to SR 4,000 ($1,066).

Starting now, September 5, 2023, this modification—which was made accessible by the Human Resources Development Fund (HADAF)—will be put into practice.

Rising salaries are an essential part of the Saudi government’s plan for growing local employment opportunities. According to a statement from HADAF, the aim of these actions is to increase the hiring of Saudis in the private sector.

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In addition to payment changes, HADAF has made additional modifications, including delaying the period for companies to submit requests for salary support.

Companies are eligible for HADAF to pay for staff salaries just 90 days after a worker joins. It indicates that companies have a responsibility to pay any salary given to new employees for the first 90 days.

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Companies are able to use HADAF support from days 91 to 180. The fund will no longer assess requests for salary support after 180 days.

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