Over the past five years, the average salaries of workers in Saudi Arabia’s private sector have experienced a remarkable surge of 45 percent. This notable increase can be attributed to the country’s economic growth and pro-business reforms, which are integral components of the transformative Vision 2030 agenda.
According to a report from the National Labour Observatory, average wages have increased in the Kingdom from SAR6,600 ($1,760) in 2018 to SAR9,600 ($2,560) in 2023.
The competitiveness of the labor market has contributed to the growth of salaries among Saudi citizens. Additionally, the report attributes the income growth to the support packages. These packages were provided to the private sector during the COVID-19 pandemic.
The number of Saudi nationals earning higher salaries has experienced substantial growth.
According to data, the number of Saudi nationals earning more than SAR40,000 per month has significantly increased. As of 2023, the figure stands at over 44,000 individuals. This marks a growth of 172 percent compared to the 16,189 nationals with the same salary in 2018.
The growth in Saudi salaries can be attributed to the strong demand for workers in the country. These workers possess specialized skills, leadership abilities, and the necessary competencies required for major projects and companies.
Additionally, over the same period, the number of Saudi nationals receiving salaries of SAR20,000 has increased by 139 percent to reach 202,713 individuals. This rise can be attributed to the high demand for specialized jobs and the improving skills of Saudi workers.
Furthermore, Saudi Arabia has implemented several significant projects as part of the transformative Vision 2030. These projects are aimed at diversifying the economy and increasing non-oil revenues in the country.
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