The Saudi Ministry of Human Resources and Social Development (HRDF) has raised the minimum wage for the natives registered in the Nitaqat program from SR 3,000 ($800) to SR 4,000 which will apply to all existing and new entities.
Ahmed Al-Rajhi, Minister of Human Resources and Social Development, had issued the revised minimum wage policy and has directed private institutions in the country to implement the scheme. It is expected to come into effect within five months.
The HRDF spokesman Nasser al-Hasani clarified the increase of the minimum wage applicable to all natives in the indigenous sector and will benefit those who are currently employed and new recruits alike. A Saudi worker with a minimum salary of SR4,000 will be considered as an individual worker in the Saudization percentage of the Nitaqat program. The program was introduced to promote Saudization in the labour market and aimed at localization through incentives by HRDF.
A Saudi employee earning between SR3,000 and SR 4,000 will only earn the company half a point in the point-based system and will be considered a semi-employee. Those who receive less than SR3,000 will not be counted at all in the Nitaqat system.
The revised official decision also applies to Saudi students in the Kingdom who are working as flexible part-times or permanent part-timers.