Saudi Arabia’s Human Resources Development Fund (HRDF) is increasing the minimum monthly salary required to qualify for its Employment Support Program, with the changes taking place in two stages between 2027 and 2028.
The minimum salary will increase from SAR 4,000 to SAR 5,000 on April 25, 2027, before rising again to SAR 6,000 on April 25, 2028.
The changes follow a decision by the Ministry of Human Resources and Social Development to increase the minimum salary required for Saudi employees to be counted under the Nitaqat Saudization programme.
When Will The New Salary Requirements Take Effect?
The updated salary requirements will be introduced in two phases:
First phase: April 25, 2027
The minimum monthly salary for new applications under the Employment Support Program will increase from SAR 4,000 to SAR 5,000.
For companies and employees already receiving support, the new requirement will apply to payments starting from May 2027.
Second phase: April 25, 2028
The minimum salary requirement will increase again, from SAR 5,000 to SAR 6,000 for new applications.
Existing support applications will also be subject to the updated requirement, starting with payments for May 2028.
How Does HRDF Employment Support Work?
HRDF’s Employment Support Program helps private-sector companies hire Saudi nationals by covering part of their monthly salaries.
Under the programme, HRDF will continue to cover up to 50% of an eligible Saudi employee’s monthly salary, with a maximum contribution of SAR 3,000 per month.
This support is subject to the programme’s terms and conditions, including the updated minimum salary requirements.
Why Is HRDF Making These Changes?
According to HRDF, the changes aim to encourage private-sector companies to offer better-paying and more sustainable jobs for Saudi nationals.
The fund also aims to strengthen the competitiveness of Saudi employees and encourage more businesses to recruit local talent.
The Employment Support Program is part of wider efforts to increase Saudi participation in the private-sector workforce and support the Kingdom’s employment and economic development goals.
For employers currently using the programme, the upcoming changes mean they will need to take note of the new salary thresholds and the dates they apply to both new and existing support applications.
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