Saudi Riyal
Illustrative image. Image Credit: Bloomberg file

Dubai: Saudi Arabia has raised the minimum wage for its citizens working in the private sector to SR4,000, subsidised by Human Resources Development Fund (Hadaf), up from SR3,200, with effect from the September 5.

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. They include a key revision — eliminating the requirement for a grace period for submitting requests for the employment support initiative within the initial 120 days of the employee’s social insurance registration. Under the updated guidelines, establishments are now eligible to apply for support 90 days after the employee’s registration, effectively marking the conclusion of the trial period.

During the first three months of the employee’s appointment (the first 90 days of social insurance registration), the establishment will bear the employee’s wages. The application window for the employment support initiative extends from the 91st day to the 180th day following the employee’s insurance registration. In alignment with the fifth update, HADAF has clarified that any support request submitted after 180 days from the employee’s registration will not be accepted.

These regulatory changes will come into effect for new requests for the employment support initiative from September 5. Meanwhile, the currently beneficiaries will continue to receive support according to the previous regulations.