Saudi Business Pay Rises 6% to SAR 624.1bn in 2025

Total compensation paid to employees across Saudi businesses rose 6% in 2025 to reach SAR 624.1 billion, reflecting continued growth in the private-sector labour market.

The figure breaks down into SAR 528.9 billion in wages and salaries and SAR 95.1 billion in benefits and allowances. The 2025 data covers that year only and does not set a separate compensation total for 2026.

Saudi Arabia does not apply a statutory national minimum wage for private-sector employees. For Nitaqat Saudization purposes, however, a Saudi worker generally counts as one full employee when paid at least SAR 4,000 making salary levels directly relevant to a company's Saudization standing.

What employers should know

From 15 April 2026, Saudi employment contracts must be electronically documented through قوى to be included in Nitaqat calculations. Employers are also required to document contracts and pay wages electronically through approved payroll systems.

Commonly reported 2026 expatriate employment charges include SAR 100 annually for the basic work-permit license, with monthly fees of SAR 700, rising to SAR 800 where expatriates exceed Saudi employees. An expatriate residence permit is commonly reported at SAR 650 annually plus SAR 400 monthly, while sponsorship transfers are reported at SAR 2,000, SAR 4,000, or SAR 6,000 for the first, second, and third-and-subsequent transfers.

Exact payable amounts and validity dates should always be confirmed in قوى, مقيم, or the relevant government payment system before processing any transaction.

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