King Salman bin Abdulaziz Al Saud approved the measures on October 25, 2026, following a proposal by Crown Prince and Prime Minister Mohammed bin Salman, according to the Saudi Press Agency.

The package includes an additional monthly allowance of SAR500 for eligible civilian and military employees, retirees and certain beneficiaries under the country’s Social Insurance system. Families receiving Social Security benefits will also qualify for monthly support of SAR500, subject to the applicable rules.

The government said the measures are intended to help households manage the financial impact of the forthcoming adjustments to electricity and water consumption tariffs.

The support covers civilian and military personnel on specified civil service salary scales and operational programme contracts. It also extends to retirees and eligible family members of deceased contributors or retirees covered by the Social Insurance system.

The announcement comes as Saudi Arabia prepares to adjust electricity and water tariffs from the beginning of 2027. Saudi Energy and the National Water Company have separately announced changes to their respective consumption tariffs.

Alongside the household support package, the government is introducing changes to the wage threshold used to determine how Saudi employees count towards private companies’ Saudization quotas under the Nitaqat programme.

Under the new arrangement, the minimum monthly wage required for a Saudi employee to count fully towards a company’s Nitaqat quota will rise to SAR5,000 six months after implementation begins. The threshold will subsequently increase to SAR6,000, 12 months after the first increase takes effect.

The adjustment is intended to raise wage levels for Saudi nationals working in the private sector and encourage more sustainable employment opportunities for citizens.

However, the Nitaqat change concerns the wage threshold used for calculating Saudization quotas. It should not be interpreted as a blanket announcement that every private-sector worker in Saudi Arabia will automatically receive a salary increase.

The support package forms part of the kingdom’s efforts to cushion the effects of changes in household utility costs while advancing its employment policies.

For eligible beneficiaries, the additional monthly payments could provide some relief as the new tariffs come into effect. The practical impact will depend on individual eligibility, the applicable payment arrangements and the final effect of the revised utility charges on household bills.

Reporting by TalkNaijaMedia