Riyadh: The Kingdom of Saudi Arabia (KSA) has raised the minimum salary for its citizens working in the private sector to Saudi Riyals 4,000 (Rs 88,503) instead of Saudi Riyals 3,200 (Rs 70,785).
The new salary, which is subsidized by the Human Resources Development Fund (HADAF), will be applicable beginning Tuesday, September 5.
The move aims to improve the well-being of workers and strengthen the national labour market.
The Saudi Human Resources Fund announced the salary increase as part of an ongoing initiative to support employers in recruiting workers in Saudi Arabia.
Other updates include changes to the time it takes to file a claim for Social Security benefits after registering as an employee.
Companies can now apply for workers’ compensation benefits within 90 days of the employee’s registration.
Effectively, an employer is eligible to pay an employee’s salary in full for the first 90 days after successful employment. However, within 91 to 180 days, an employer in Saudi Arabia can apply for support paying the wages of citizens.
However, HADAF has confirmed that it will not accept salary support requests submitted after 180 days of the employee’s registration.
