HRDF raises minimum wage eligible for employment support in 2 phases

Logo of The Human Resources Development Fund (HRDF)

The Human Resources Development Fund (HRDF) announced a two-phase increase in the minimum monthly wage under its Employment Support Product to SAR 5,000 from April 25, 2027, and SAR 6,000 from April 25, 2028.

Under the first phase, the minimum supported wage will increase from SAR 4,000 to SAR 5,000 per month for new applications. The amendment will apply to existing support applications starting with the May 2027 payment.

The second phase raises the minimum supported wage from SAR 5,000 to SAR 6,000 per month for new applications. Existing support applications will be subject to the revised minimum starting with the May 2028 payment.

HRDF will continue to cover up to 50% of the monthly wages of eligible Saudi employees, capped at SAR 3,000 per month, in accordance with the approved terms and conditions.

The support aims to help private-sector establishments benefit from employment programs and recruit Saudi talent across economic sectors.

The Employment Support Product is designed to encourage private-sector companies to hire Saudi citizens, by covering part of their wages, supporting employment opportunities, job stability and investment in national human capital.

The move is part of the fund’s efforts to empower Saudi talent, enhance its competitiveness in the labor market, improve job quality and sustainability, and encourage private-sector establishments to recruit Saudi nationals.

According to Argaam data, the Custodian of the Two Holy Mosques King Salman bin Abdulaziz recently directed a number of measures to support citizens, based on a proposal by Crown Prince Mohammed bin Salman.

The measures coincide with changes to electricity consumption tariffs, effective Jan. 1, 2027.

The measures cover Saudi employees in private-sector establishments, raising the minimum monthly wage required to count a Saudi employee as a full worker toward Saudization rates under the Nitaqat program to SAR 5,000.

The increase will take effect six months after the measure's implementation date, followed by a further increase to SAR 6,000 after 12 months from the first increase's implementation date.

The measures aim to raise wage levels and support the sustainable employment of Saudi nationals in the private sector.