Saudi Arabia Increases Electricity and Water Tariffs in 2027 and Offers 500 Riyals Compensation

Saudi Arabia announced a support package including a monthly allowance of 500 riyals for civil and military employees, retirees, and eligible social security families, prior to implementing adjustments to electricity and water tariffs on January 1, 2027.

King Salman ordered the payment of the allowance based on a proposal from Crown Prince Mohammed bin Salman, as reported by the Saudi Press Agency on Sunday, October 25, 2026. The support also includes certain heirs of individuals covered by social insurance.

The package includes raising the minimum monthly wage required for a Saudi employee to count toward the Saudization rate under the Nitaqat program to 5,000 riyals six months after implementation begins, and then to 6,000 riyals after an additional 12 months.

Competent authorities for electricity and water in the Kingdom confirmed the tariff adjustments, stating that the package aims to mitigate the impact of the increase on families while supporting wage levels and sustaining the employment of Saudis in the private sector.

What do these terms mean?

Electricity and water tariffs: The amounts paid by consumers for electricity and water consumption.

Social Security: A government program providing cash support to lower-income families and individuals.

Nitaqat: A Saudi program linking a company's rate of Saudi employment to government benefits and services.

Minimum wage: The lowest monthly amount at which a worker is calculated toward the Saudization rate.