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

Worker well-being and the national labour market will be strengthened as a result of the move.

The "employment support" initiative offered by Hadaf to private sector establishments has undergone five significant updates.

As part of Hadaf's ongoing commitment to boost the country's domestic workforce, the decision was made.

In addition to adapting to the evolving labour market, the updates address 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 employment (the first 90 days following social security registration), the establishment will cover the employee's wages. The application window for the employment support initiative extends from the 91st day to the 180th day following 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.

From September 5, new requests for employment support initiatives will be subject to these regulatory changes. In the meantime, the current beneficiaries will continue to receive support in accordance with the previous rules.