Saudi Arabia Approves Monthly 500-Riyal Support and Phased Increase in Nitaqat Wage Threshold to 6,000 Riyals
Key Facts
On 25 October 2026, King Salman bin Abdulaziz directed measures to support citizens alongside changes to electricity and water tariffs, based on a proposal from Crown Prince and Prime Minister Mohammed bin Salman, the Saudi Press Agency reported. The measures include a monthly increase of 500 riyals for specified groups of employees, retirees and family members covered by social insurance. Households benefiting from social security will also receive monthly support of the same amount, subject to the applicable mechanisms and regulations. On employment, the decision will gradually raise the wage threshold required for a Saudi worker to count fully toward localization rates under the Nitaqat program. The agency said the measures aim to ease the impact of changes to electricity and water tariffs, support wage levels and sustain the employment of citizens in the private sector.
The 500-riyal amount is not a uniform allowance for all citizens or all the groups mentioned; the decision specifies which groups qualify under each track. The increase covers civilian and military employees subject to civil service pay scales and operating program provisions, retirees, and family members of a deceased subscriber or retiree covered by the social insurance system. Households benefiting from social security will receive separate monthly support of the same amount, subject to the applicable mechanisms and regulations. The distinction between these groups comes as support is directed to eligible recipients alongside changes to electricity and water tariffs. The announcement did not specify the package’s total value or the total number of beneficiaries.
The Nitaqat change concerns how a Saudi worker is counted toward localization rates; it does not establish a general minimum wage. The threshold for counting a worker in full will rise to 5,000 riyals, with the increase taking effect 6 months after the measure begins, the Saudi Press Agency reported. The threshold will then rise to 6,000 riyals after 12 months from the start of the first increase, in a phased path that raises the wage level used to count a worker in full. The Ministry of Human Resources and Social Development says Nitaqat classifies establishments according to their job localization rate and compares each establishment’s performance with others in the same category. This means the change affects the localization calculation and the assessment of establishments, while the agency describes its aim as raising wage levels and supporting sustained employment of citizens in the private sector.
The timing of the support is linked to tariff changes being prepared by the National Water Company. The revised water and wastewater tariff for residential, non-residential and government sectors will take effect on 1 January 2027, according to the Saudi Press Agency. The decision linked the support measures to easing the impact of changes to electricity and water tariffs, while the Nitaqat track targets wages and private-sector employment. The measures therefore combine monthly support for specified groups with a gradual change to the criteria for counting Saudi workers toward localization rates. Available information did not state the size of the increase in water or electricity bills, or details of the expected impact on households and establishments.
In the broader economic context, the International Monetary Fund estimated in October 2026 that the Saudi economy would contract by 3.3% in 2026 before growing by 7.9% in 2027. The fund attributed the economy’s relative resilience to diversified energy export routes. These estimates provide economic context for the package, but the support announcement did not link it to the growth forecasts or those estimates. Among upcoming data releases, an economic calendar lists 1 November 2026 for the release of third-quarter GDP growth data. The previous reading, for the second quarter of 2026, was negative at 4.70% year over year; the calendar showed no published forecast for the next reading.