Saudi Arabia raises Nitaqat salary thresholds for Saudization from 2027

Saudi Arabia will introduce new salary thresholds for Saudi employees to be counted as full employees under the Nitaqat Saudization programme.

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The changes will take effect in two stages, with the relevant monthly salary threshold increasing to SAR 5,000 from 25 April 2027 and then to SAR 6,000 from 25 April 2028.

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The change is important for private-sector employers because it affects how Saudi employees contribute towards an establishment’s Saudization calculations under Nitaqat.

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It does not mean that every Saudi employee must automatically receive a salary increase to SAR 5,000 or SAR 6,000. Rather, the new figures determine the salary level required for an employee to be counted fully towards the employer’s Saudization requirements.

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For more information about operating and employing staff in the Kingdom, visit our Saudi Arabia immigration page.

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What are the new Nitaqat salary thresholds?

The changes will be introduced in two phases:

• SAR 5,000 per month from 25 April 2027
• SAR 6,000 per month from 25 April 2028

The current general salary level for full counting is SAR 4,000 per month.

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Under the revised framework, Saudi employees earning below the applicable future threshold may no longer count as full employees when the establishment’s Saudization position is calculated.

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The phased implementation is intended to give private-sector businesses time to prepare for the revised requirements.

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Does this mean Saudi employers must increase salaries?

Not necessarily.

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The change concerns the salary level used to determine whether a Saudi employee is counted fully under the Nitaqat Saudization programme.

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It is therefore different from a general statutory requirement compelling every private-sector employer to raise all Saudi salaries to SAR 5,000 or SAR 6,000.

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However, employers relying on Saudi employees at lower salary levels to meet their Saudization requirements should assess whether their current workforce and salary structure will continue to support their required Nitaqat position once the new thresholds take effect.

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Why does the change matter for employers?

Nitaqat plays an important role in determining how effectively a private-sector establishment is meeting Saudi Arabia’s nationalisation requirements.

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A change in how Saudi employees are counted can therefore affect an employer’s overall Saudization status even where the number of Saudi employees remains unchanged.

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Businesses should review:

• current salaries paid to Saudi employees;
• which employees are currently relied upon for Saudization calculations;
• future recruitment requirements;
• payroll and workforce budgets;
• the organisation’s expected Nitaqat position in 2027 and 2028; and
• whether any salary or workforce adjustments may be needed before the changes take effect.

Employers should avoid waiting until the new thresholds are already in force before reviewing their position.

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How should employers prepare for the 2027 threshold?

The first increase will take effect on 25 April 2027, when the salary threshold for full counting rises to SAR 5,000.

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HR and management teams should review Saudi employees whose salaries fall below this level and assess the potential effect on the company’s Saudization calculations.

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This review should be considered alongside recruitment plans, salary budgets and expected workforce growth.

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Businesses should also check whether sector-specific Saudization requirements apply to particular professions or activities, as these may operate alongside the wider Nitaqat framework.

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Hudson McKenzie has previously examined changes affecting localisation requirements in areas such as marketing and sales.

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What changes from April 2028?

The second phase begins on 25 April 2028, when the relevant threshold rises again from SAR 5,000 to SAR 6,000 per month.

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Employers therefore need to consider the change as a multi-year workforce planning issue rather than a single compliance deadline.

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A salary structure that continues to support an employer’s Saudization position after April 2027 may need to be reviewed again before April 2028.

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Long-term workforce and remuneration planning can help businesses manage these changes more effectively.

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What should HR teams do now?

Although the first change does not take effect until April 2027, businesses have an opportunity to prepare well in advance.

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HR and compliance teams should consider:

• identifying Saudi employees potentially affected by the new thresholds;
• modelling how the changes could affect the company’s Nitaqat position;
• reviewing future Saudi recruitment plans;
• assessing salary and employment budgets for 2027 and 2028;
• monitoring any additional Ministry guidance; and
• coordinating Saudization planning with wider workforce and business growth plans.

Preparing early can reduce the risk of unexpected changes to an organisation’s Saudization position.

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How Hudson McKenzie can assist

Hudson McKenzie supports employers operating in Saudi Arabia with immigration, workforce mobility and compliance matters.

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Our team can assist businesses with understanding Saudization requirements, reviewing workforce arrangements and considering how regulatory developments may affect employment and immigration planning.

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For businesses establishing or expanding their presence in the Kingdom, we can also assist with the broader practical requirements associated with operating in Saudi Arabia.

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If your organisation requires assistance with Saudi immigration, workforce compliance or Saudization planning, contact Hudson McKenzie.

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Disclaimer: This article is based on information available as of November 2026 and is for general informational purposes only. Saudization requirements and implementation guidance may change, and employers should obtain advice based on their specific circumstances.

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