Saudi Employee Pay Index Rises 7.4% in July 2026

Wages in Saudi Arabia continued their upward trend in July 2026, as the Employees Compensation Index recorded a year-on-year increase of 7.4%. The index measures changes in pay across the private sector and is published in points rather than exact riyal wage levels.

The strongest annual gains came from the administrative and support services sector, which rose 11.6%, followed by manufacturing at 10.3% and transportation and storage at 9.9%. Manufacturing, the largest contributor with a weight of 22.6, reached an index level of 136.2 points, reflecting sustained demand for skilled labour in the sector.

Wholesale and retail trade and vehicle repair recorded a 6.2% annual rise, reaching 127.6 points, while financial and insurance activities climbed 6.4% and information and communications increased 6.5%. Construction saw a more moderate gain of 4.6%, and mining and quarrying rose 2.7%.

Monthly movement

On a monthly basis, the index edged up 0.3% in July 2026. The main drivers of this month-on-month increase were human health and social work, up 2.6%, and information and communications, up 1.8%. Transportation and storage added 0.8%, while mining and quarrying and financial and insurance activities posted smaller gains of 0.3% and 0.1% respectively.

For residents and workers across the Kingdom, the figures point to broadly rising compensation levels, particularly in manufacturing, retail and services sectors that employ large numbers of expatriates and Saudis alike. The index reflects overall pay trends and does not specify exact monthly or hourly wages by sector.

The Employees Compensation Index is issued as part of the Kingdom's short-term economic indicators and is available through official statistical publications online.

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