Minimum Wage in Saudi Arabia: Latest Update
Introduction
Saudi Arabia’s labor market is undergoing significant reforms in 2025–2026, with updated wage policies that impact both Saudi nationals and expatriate workers. These wage changes are part of broader labor reforms under Vision 2030, focusing on Saudization (increasing local participation in the labor force), better worker protection, transparency, and harmonizing wages across sectors.
1. What Is Minimum Wage in Saudi Arabia?
Unlike many countries that have a universal legal minimum wage for all workers, Saudi Arabia’s minimum wage policies are structured around multiple objectives:
a) For Saudi Nationals (Private Sector)
Saudi citizens working in the private sector are guided by minimum wage frameworks that ensure fair compensation. For example, under the Nitaqat system (the Saudization program), employers must pay qualifying Saudi employees at least SR 4,000 per month to be counted in Saudization proportions.
b) For Expatriate Workers
Historically, there was no universal legal minimum wage for foreign workers in Saudi Arabia. However, recent reforms have introduced new wage protections and floor standards for all workers, including expatriates. In early 2026, Saudi authorities announced that all workers — including foreign employees — should receive a minimum salary of at least SR 1,000 per month.
These changes aim to provide a baseline level of income and improve consistency in labor conditions across economic sectors.
2. Recent Minimum Wage Changes (2025–2026)
In late 2025 and early 2026, the Saudi Ministry of Human Resources and Social Development (MHRSD) announced multiple wage-related updates that reflect the Kingdom’s evolving labor market strategy:
a) New Minimum Pay Levels by Sector
Saudi Arabia set new minimum pay thresholds for specific sectors to support Saudization and ensure local participation:
- Engineering Professions: Minimum monthly wage of SR 8,000 for Saudi engineers in private and non-profit sectors to count towards Saudization targets.
- Marketing and Sales Roles: Minimum wage set at SR 5,500 per month for roles included in the Saudization program, with a 60% Saudi workforce target.
These sector-specific requirements encourage companies to hire qualified Saudi workers while maintaining competitive salaries for skilled jobs.
b) Mandatory Salary Payment Rules
Saudi Arabia implemented mandatory electronic salary payments for all domestic workers via the official Musaned platform starting January 1, 2026. This ensures wage transparency and prevents late or unrecorded payments.
3. Why Saudi Arabia Is Updating Minimum Wage Policies
a) Vision 2030 and Labor Market Reform
Saudi Arabia’s long-term Vision 2030 initiative aims to diversify the economy, create jobs for citizens, and modernize labor regulations. Part of this strategy is to ensure that wages reflect fair labor standards, reward skill and productivity, and protect worker rights.
b) Saudization Strategy
The Saudization system (also called Nitaqat) uses minimum wage requirements to ensure Saudi citizens are actively participating in the private sector workforce. Employers who hire Saudi nationals with competitive wages are rewarded with improved status and incentives under the Saudization classification system.
c) Worker Protection and Transparency
The introduction of digital wage systems and standardized minimum pay levels for certain job categories represents Saudi Arabia’s effort to protect workers — especially expatriates — against wage disputes, non-payment, and exploitation.
4. Impacts and Challenges of the New Wage Policies
a) Financial Security for Workers
The establishment of minimum wages — even if modest — gives workers more predictability in income and financial planning. For foreign workers, the official floor of SR 1,000 monthly marks an important step toward financial protection.
b) Business Compliance and Costs
Some businesses may face increased operational costs due to higher minimum wage requirements, especially in skilled sectors like engineering or marketing. However, the government’s grace periods and implementation timelines are designed to help companies adjust gradually.
c) Labor Market Balance
Saudi authorities continue to balance the need for competitive foreign talent with the priority of local employment. Wage policies like sector-specific minimums support this dual goal without imposing blanket regulations that could disrupt labor demand.
5. Summary of Latest Wage Levels
| Worker Category | Minimum Wage (Approx) | Notes |
|---|---|---|
| Saudi Citizen (Private Sector, Nitaqat) | SR 4,000/month | To count in Saudization quotas. |
| Foreign Worker (Universal Floor) | SR 1,000/month | Starting February 2026. |
| Engineering Sector Specialists | SR 8,000/month | Saudization requirement. |
| Marketing & Sales Roles | SR 5,500/month | Sector minimum wage. |
Conclusion
Saudi Arabia’s minimum wage policies in 2025–2026 reflect a mix of modern labor reforms, Saudization priorities, and worker protection goals. While not all wage rules apply universally to every worker, the trend is toward stronger wage standards, improved transparency, and more balanced labor market conditions under Vision 2030. These changes also signal Saudi Arabia’s shift to a structured wage environment that is more predictable and equitable for both citizens and expatriates.
Sources
- Saudi Ministry of Human Resources & wage standards defined — Saudi wage frameworks.
- Sector-specific minimum wages in engineering and marketing jobs.
- Universal minimum wage floor for workers including expatriates .
- Mandatory e-salary wage payment rules.