Saudi Gazette report

RIYADH — The minimum wage, which is subsidized by the Human Resources Development Fund (HADAF), has risen to SR4,000 instead of SR3,200.

The decision came as part of the 5 new updates in the controls for applying for “employment support” product provided to private sector establishments in Saudi Arabia, which was launched on Saturday by the Human Resources Development Fund (HADAF) .

The new updates are based on HADAF’s new strategy to enhance the sustainability of national human cadres in the labor market, and in continuation of supporting and empowering various business sectors.

The 5 new updates also included canceling the grace period requirement for submitting a support request in the employment support product within the first 120 days from the date of the employee’s registration in social insurance.

The establishments are now allowed to submit support request after 90 days from the employee’s registration in social insurance (after the end of the trial period).

HADAF indicated that the establishments are the ones who shall bear the full wages of the employee during the first three months of his appointment (the first 90 days from the date of the employee’s registration in the social insurance), provided that period of application for the employment support product is from the 91st day to the 180th day from the date of the employee’s registration in the social insurance.

As for the fifth update, HADAF confirmed that it will not accept any support request if 180 days have passed since the employee’s registration in the social insurance.

The new updates in the controls will be applied on the new support requests for the employment support product, starting from Sept. 5, 2023, HADAF said, noting that the support will continue to be disbursed to the currently supported beneficiaries according to the previous controls.

HADAF has launched its new strategy, which comes in response to the changes and challenges of labor market, to improve its efficiency, as well as to keep pace with developments and taking into account the needs and priorities related to the sectors.

The new strategy also comes to develop programs and products to support training, employment and empowerment directed to national cadres in line with achieving the goals of Saudi Arabia’s Vision 2030 and the labor market strategy.