Saudi Arabia will raise the minimum wage for its citizens from 3,000 riyals ($800) to 4,000 riyals ($1,066), a 33 percent increase, the Kingdom’s Ministry of Human Resources and Social Development announced last week.
Set to take effect five months from the announcement date of Wednesday, November 18th, the increase is substantial for Saudi workers.
The ruling does not apply to expatriate workers.
According to Al Arabiya, the new rules stipulate that if a Saudi Arabian worker receives a monthly salary below the new minimum wage, the employee will not be counted as part of the company’s designated quota of citizen employees, part of a program known as Nitiqat, according to the ministry. Saudi Arabian employees who receive a salary between 3,000 riyals and 4,000 riyals will also be counted as half of a citizen worker in the quota count, the ministry said.
The new decision also applies to students who are employed part-time, part-time employees, and those who work flexible working hours.
The program also aims to enhance jobs for Saudi nationals through aligning the quality of nationalization with a range of incentives given by the Human Resources Development Fund.
Earlier this month, the Kingdom’s Ministry of Human Resources and Social Development (MHRSD) unveiled the Labor Reform Initiative (LRI) under the National Transformation Program (NTP), which will improve the contractual relationship between workers and employers in a drive to make the job market in Saudi Arabia more attractive.
The initiative, which comes into effect on March 14, 2021, will help foreigners to acquire a residency status that is not tied to a specific employer or employment status, a key reform in the sponsorship system, bringing Saudi Arabia closer to labor market regulations in advanced economies, according to Arab News.
