RIYADH: Saudi Arabia has raised the minimum wage for its citizens working in the private sector to 4,000 riyals.
The Human Resources Development Fund (Hadaf), the department under the Saudi Ministry of Labor and Social Development, made the announcement to increase the minimum wage from 3,200 riyals with effect from September 5.
HRDF (or Hadaf) is mainly concerned with providing financial support to organizations that train and qualify Saudis in the private sector. It said the move aims to enhance the well-being of workers and strengthen the national labour market.
This change is among the five significant updates introduced to the regulations governing the “employment support” initiative offered to private sector establishments by Hadaf.
The decision was announced as part of Hadaf’s ongoing commitment to bolster the sustainability of the country’s domestic workforce.
The updates signal a shift in approach designed to adapt to the evolving labour market while addressing emerging challenges.
The Kingdom has eliminated the requirement for a grace period for employment support initiatives within the initial 120 days of the employee’s social insurance registration. Under the updated guidelines, companies can apply for support 90 days after the employee’s registration.
During the first three months of the employee’s appointment, the company will bear the employee’s costs. The application for employment support has been extended till the 180th day following the employee’s insurance registration. No application will be accepted after the duration.
These regulatory changes will come into effect for new requests for the employment support initiative from September 5. The current beneficiaries will continue to receive support according to the previous regulations.