Saudi Arabia Increases Minimum Wage and Allowances in 2026

On October 25, 2026, King Salman bin Abdulaziz Al Saud approved a financial support package for citizens of Saudi Arabia in Riyadh, following a proposal by Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud. The measures include a SAR500 (approximately ₦180,383) increase in monthly allowances for civilian and military personnel on civil service salary scales, as well as retirees and eligible beneficiaries under the Social Insurance system.

Families receiving Social Security benefits will also receive this monthly stipend. These payments aim to mitigate the financial impact of upcoming adjustments to electricity and water tariffs, effective January 1, 2027.

Additionally, the minimum wage for private sector workers will increase to SAR5,000 (approximately ₦1,803,830) six months after the support measures are implemented, with a further increase to SAR6,000 (approximately ₦2,164,596) twelve months later. This adjustment is part of the Nitaqat Saudization programme, which governs the employment of Saudi nationals in the private sector.