Saudi King approves SR500 monthly allowance (approx ₹12,000) ahead of electricity, water tariff changes: Who gets it?

The royal directives cover both direct financial assistance to eligible households and measures intended to improve wages and employment conditions for Saudi nationals.

Saudi Arabia’s King Salman bin Abdulaziz Al Saud has ordered a package of financial support measures, including an additional monthly allowance of 500 Saudi riyals (around $133) for eligible citizens, as the kingdom prepares to introduce changes to electricity and water consumption tariffs from January 1, 2027.

The measures, proposed by Crown Prince and Prime Minister Mohammed bin Salman, will benefit eligible civilian and military employees, retirees, certain family members of deceased contributors or retirees covered by the Social Insurance Law, and households receiving social security support, according to the Saudi Press Agency (SPA).

Multiple news outlets have reported the measures, citing the royal decree and official announcements by Saudi Press Agency.

The support package is intended to help citizens manage the financial impact of the revised electricity and water tariffs. The directives also include changes to minimum wage thresholds for Saudi employees under the kingdom’s Nitaqat Saudization programme, which regulates the employment of Saudi nationals in private-sector companies.

Saudi Arabia to provide SR500 monthly support to eligible citizens

Under the royal directives, eligible civilian and military employees covered by civil service pay scales and employment programmes will receive an additional SR500 per month.

The increase will also extend to eligible retirees and family members of deceased contributors or retirees covered by the Social Insurance Law, subject to the applicable rules.

Families receiving benefits under the social security system will also receive an additional monthly payment of SR500, in accordance with the relevant regulations and procedures.

The measures are designed to provide financial relief to eligible households ahead of the electricity and water tariff adjustments scheduled to take effect on January 1, 2027.

The announcement comes as Saudi authorities seek to cushion the impact of changes to essential utility costs while continuing efforts to strengthen employment and income opportunities for Saudi citizens.

Saudi Arabia to raise Nitaqat wage threshold to SR5,000, then SR6,000

The royal directives also provide for a phased increase in the minimum monthly wage required for a Saudi employee to count fully towards a private-sector company's Saudization quota under the Nitaqat programme.

Under the first phase, the threshold will rise to SR5,000 per month, effective six months after implementation of the measure begins.

It will subsequently increase to SR6,000 per month, effective 12 months after the first increase is implemented.

The Nitaqat programme is designed to encourage private-sector employers to hire Saudi nationals by linking companies' compliance with Saudization requirements to the proportion of their workforce made up of Saudi citizens.

The revised wage thresholds aim to improve salary levels for Saudi employees and support more sustainable employment opportunities in the private sector.

The changes are part of the wider package announced by King Salman following a proposal from Crown Prince Mohammed bin Salman.

Electricity and water tariff changes to take effect in January 2027

The financial support measures coincide with adjustments to electricity and water consumption tariffs announced by the Saudi Electricity Company and the National Water Company, effective January 1, 2027.

The additional monthly payments for eligible beneficiaries are intended to help offset the financial impact of these changes.

The royal directives cover both direct financial assistance to eligible households and measures intended to improve wages and employment conditions for Saudi nationals.

While the SR500 monthly allowance is intended to provide immediate support to eligible beneficiaries, the phased Nitaqat wage changes focus on the longer-term objective of strengthening Saudi participation in private-sector employment.