The minimum wage for Saudi citizens employed in the private sector will increase to SR 4,000 ($1,066) from the previous SR 3,200 ($853), the country announced on Monday.
This modification, which was encouraged by the Human Resources Development Fund (HADAF), will take effect as of right now, September 5, 2023.
The Saudi government’s decision to increase wages is a significant step in its efforts to strengthen the domestic labour market. According to HADAF, the purpose of this change is to boost Saudi national hiring in the private sector.
HADAF has made additional changes in addition to wage adjustments, such as extending the deadline for businesses to submit requests for salary support.
Just 90 days after a worker has registered, companies can now apply for HADAF financial assistance for employee salaries. This implies that employers are obligated to pay all wages for the first 90 days following an employee’s hire.
HADAF’s assistance is available to businesses from days 91 to 180. After 180 days, the fund will no longer consider requests for salary assistance.
