Saudi Arabia’s Ministry of Human Resources recently announced an increase to the monthly minimum wage for full-time Saudi workers in April 2021, and introduced a Labor Reform Initiative (LRI) scheduled to take effect on 14 Mar 2021.
The monthly minimum wage will increase to SAR 4,000 (up from SAR 3,000) for purposes of calculating private sector employers’ compliance with the Nitaqat program. Introduced in 2011, the Nitaqat program requires companies to employ a certain ratio of Saudi nationals to foreign workers, depending on the company’s industry and size. The goal is to reduce the number of unemployed Saudi nationals and to boost private sector employment of Saudis.
The LRI aims to increase labor market efficiencies and attract employers. Highlights include: