Saudi Arabia announced on Monday that the minimum salary for its citizens working in the private sector will be raised to SR 4,000 ($1,066), up from the previous SR 3,200 ($853).
This change, driven by the Human Resources Development Fund (HADAF), will be effective from today (5 September 2023).
The wage increase is a major step taken by the Saudi government in its efforts to improve the national job market. HADAF stated that the goal of this change is to increase the hiring of Saudi nationals in the private sector.
In addition to wage adjustments, HADAF has also made other changes, including the revision of the deadline for companies to request salary support.
Companies can now apply for HADAF’s financial assistance for employee salaries just 90 days after a worker has been registered. This implies that businesses are responsible for paying the full wages for the first 90 days after hiring.
Companies can tap into HADAF’s support for the period between days 91 and 180. However, the fund will no longer entertain requests for salary assistance after 180 days.
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