King Salman Directs Increase Monthly Allowance by 500 Riyals for Employees and Retirees

His Majesty King Salman bin Abdulaziz Al Saud, in accordance with the proposal presented by Saudi Crown Prince and Prime Minister Mohammed bin Salman, has issued a number of measures to support citizens, coinciding with the announcement by Saudi Aramco and the National Water Company of adjustments to electricity and water consumption tariffs, effective January 1, 2027. The support measures include a monthly allowance of 500 riyals for civil and military employees on civil service scales and employment program positions, as well as for retirees and dependents of deceased subscribers or retirees covered by the Social Insurance system. Additionally, a monthly support of 500 riyals will be provided to families benefiting from the Social Security program, in accordance with the established mechanisms and regulations, as part of efforts to mitigate the impact of the electricity and water tariff adjustments. The measures also cover Saudi workers in private-sector establishments by raising the minimum salary threshold required to count a Saudi worker fully toward localization quotas under the “Nitaqat” program to 5,000 riyals, with implementation beginning six months after the measures take effect, and then to 6,000 riyals twelve months after the initial increase takes effect, thereby enhancing wage levels and supporting the sustainability of citizen employment in the private sector.