The Saudi Arabian National Labour Observatory ( NLO) has documented a substantial 45 per cent rise in the earnings of Saudi nationals working in the private sector over a span of five years. The current increase has raised the wage of private-sector employees to SR9,600 ($2,560), which is a notable increase from the SR6,600 ($1,760) recorded in 2018.
The Labour Observatory also pointed out significant increases in the count of Saudi individuals receiving higher salaries. Specifically, there are presently 2,02,700 Saudi nationals earning more than SR20,000 ($5,332) every month, indicating a surge of 139 per cent since 2018.
AaL surge of over 170 per cent in the count of Saudi residents earning SR40,000 ($10,665) or above on a monthly basis in the private sector has been observed.
The Observatory has attributed the expansion to several factors such as economic reforms, financial stimulus initiatives and enhanced backing for the private sector.
In a LinkedIn post, the NLO stated that the rise in wages among Saudis is a result of the economic growth and reforms that the Kingdom has been experiencing since the inception of the Kingdom’s Vision 2030 initiatives. The report also attributes this increase to the effective stimulus packages introduced by the government for the private sector during the COVID-19 pandemic. Additionally, it acknowledges the support the private sector has received to enhance its competitiveness, attractiveness, and overall efficiency in the labour market.