Saudi King sanctions SR500 monthly aid as utility tariffs set to rise in 2027

King Salman bin Abdulaziz Al Saud signed a royal decree that adds a monthly 500-riyal allowance for eligible citizens as the kingdom prepares to raise electricity and water consumption tariffs on 1 January 2027. The support, proposed by Crown Prince and Prime Minister Mohammed bin Salman, covers civil and military staff on government pay scales, retirees, designated family members under the Social Insurance Law and families receiving social security benefits.

In parallel, the decree modifies the Nitaqat Saudization programme by raising the minimum monthly wage required for a Saudi employee to count fully toward a private-sector company’s quota, first to SR5,000 six months after implementation and then to SR6,000 a year later. The utility tariff adjustments have been announced by the Saudi Electricity Company and the National Water Company. The combined measures are intended to alleviate the financial burden on households and improve salary levels for Saudi workers, reinforcing the government’s broader effort to increase Saudi participation in the private sector.