Saudi Arabia has announced an increase in the minimum wage for its citizens employed in the private sector. The new minimum salary has been raised to SR 4,000 ($1,066), marking a substantial increase from the previous SR 3,200 ($853). This change, initiated by the Human Resources Development Fund (HADAF), came into effect on September 5, 2023.
The wage hike is part of a broader strategy by the Saudi government to boost the employment of Saudi nationals in the private sector. In addition to this, HADAF has also revised the timeline for companies to apply for salary support.
Companies can now request HADAF’s financial assistance for employee salaries just 90 days after a worker has been registered, as opposed to the previous timeline. This means that businesses are required to pay the full wages for the first 90 days after hiring.
HADAF’s support can be availed by companies for the period between days 91 and 180. However, it’s important to note that the fund will no longer entertain requests for salary assistance after 180 days. This move is expected to encourage businesses to take more responsibility for their employees’ wages while also ensuring that workers are adequately compensated.
This wage increase is a major step forward in Saudi Arabia’s efforts to enhance its national job market and ensure fair compensation for its private sector workers. It reflects the government’s commitment to improving the living standards of its citizens and fostering a more balanced and sustainable economy.