Average Salary in Saudi Arabia: Real Benchmarks for 2026

You’re considering hiring in Saudi Arabia and maybe even expanding into Riyadh. Before you move forward, you need one thing: clear salary benchmarks you can actually use.

You’ve probably seen big headline numbers. But averages alone don’t tell you whether SAR 7,000 feels comfortable, tight, or generous. They don’t tell you what engineers really earn versus technicians. And they definitely don’t tell you what it costs to live in Riyadh versus Najran.

Let’s break it down in plain terms.

Understanding the average salary in Saudi Arabia

According to the latest labor market publications, the average monthly wage for Saudi employees in the private sector is around SAR 9,600 based on recent releases from the General Authority for Statistics.

For non-Saudi workers in the private sector, averages are significantly lower. Recent breakdowns show average monthly wages for many expatriate private sector employees closer to SAR 4,000 to 5,000, depending on occupation and industry.

Public sector salaries for Saudi nationals often exceed those in the private sector. Structured pay scales and allowances push many public sector roles above SAR 10,000 per month, especially for mid-level positions.

On an annual basis, that means:

• SAR 108,000 to 120,000 per year for many Saudi private sector professionals.
• SAR 120,000+ annually for mid-level public sector roles once allowances are included.
• SAR 48,000 to 60,000 per year for many lower-skilled expatriate positions.

These figures are averages. They combine entry-level workers and senior managers. That’s why they can feel disconnected from your own experience.

How the average is calculated and what it means for you

An average salary is calculated by adding all reported wages and dividing by the total number of employees. That includes everyone from junior clerks to executives.

Here is where things get confusing.

• Gross vs net pay. Most official statistics reflect gross wages. Saudi Arabia does not impose personal income tax on most employees, but social insurance contributions may apply for Saudi nationals under GOSI rules.
• Allowances included. Housing and transport allowances are often rolled into reported wage totals, especially in public sector roles.
• Nationality and sector mix. Wage data is usually segmented by Saudi and non-Saudi employees. That gap matters when you benchmark roles.

If you want to verify the numbers yourself, start with the Saudi labor market statistics portal, download the most recent wage survey, and filter by nationality, sector, and occupation.

That extra step gives you context. And context is everything when you are setting pay.

Salary benchmarks by profession and sector

Now let’s move from averages to roles.

Below is a simplified salary map for common professions. These ranges reflect public data, recruitment benchmarks, and sector reporting.

A junior engineer may start at around SAR 8,000. A senior project manager in oil and gas can exceed SAR 30,000. A specialist doctor may command far more.

That spread is normal. Saudi Arabia’s labor market is highly segmented by skill level and sector.

Private sector vs. public sector pay

In the public sector:

• Pay is structured.
• Salary bands are defined.
• Progression is predictable.
• Allowances are common.

In the private sector:

• Pay is more flexible.
• Pay can be lower at entry-level, particularly for non-Saudi workers.
• Pay can be much higher for specialized talent tied to Vision 2030 projects in technology, tourism, and infrastructure.

Government workforce policies also shape wages. For example, the SAR 4,000 minimum wage threshold for Saudi nationals under the Nitaqat program influences how companies classify Saudi employees in the private sector.

If you’re hiring in Saudi Arabia, benchmarking accurately matters just as much as compliance. You can explore more about hiring in Saudi Arabia.

Interpreting salary levels

Let’s make this practical. You offered SAR 7,000 in Riyadh. Is that good?

The only way to answer that is to compare it to living costs.

Typical living costs vs. common salaries

Cost of living data shows that average monthly living costs for a single person in Riyadh are often between SAR 4,000 and SAR 6,500, including rent, depending on lifestyle. You can explore updated benchmarks through Riyadh cost of living data.

A simplified breakdown looks like this.

Riyadh (single person):
Rent: SAR 2,500–4,000
Food: SAR 800–1,200
Transport: SAR 400–800
Utilities and internet: SAR 300–600

Najran (single person):
Rent: SAR 1,200–2,000
Food: SAR 700–1,000
Transport: SAR 300–600
Utilities and internet: SAR 300–500

Now compare.

At SAR 3,000 in Riyadh, you will likely need shared housing and careful budgeting.

At SAR 7,000 in Riyadh, you can cover core expenses and save modestly.

At SAR 10,000, you have more breathing room. Savings. Travel. Family support.

What makes a salary good in Saudi Arabia?

A good salary depends on the individual’s situation.

• Experience. A graduate earning SAR 7,000 may be in a strong starting position.
• Family structure. Supporting dependents raises housing and schooling costs.
• Sector. Technology and healthcare roles carry premiums.
• Location. Riyadh and Jeddah demand higher housing budgets than smaller cities.

Numbers only matter when they connect to reality.

Minimum wage, wage growth, and key influencers

Saudi Arabia’s private sector minimum wage threshold for Saudi nationals is SAR 4,000 per month for full program recognition purposes.

At a macro level, the country’s broader economic growth also influences wages. You can review comparative figures through World Bank GDP per capita data.

Wage levels are shaped by:

• Saudization policies that prioritize employment of Saudi nationals.
• Vision 2030 investments driving demand for skilled professionals.
• Sector participation shifts, including rising female workforce participation.
• Industry expansion, particularly in infrastructure, tourism, and technology.

These forces affect how competitive your offer needs to be.

Tips and resources for a successful hiring strategy

Hiring in Saudi Arabia is about getting the structure right.

1. Start with verified wage data.
2. Define total compensation clearly.
3. Align contracts with Saudi labor law.

Getting support from an Employer of Record (EOR)

If you want to hire in Saudi Arabia without setting up your own legal entity, working with an Employer of Record (EOR) can simplify the process.

An employer of record is a third party that legally employs workers on your behalf in a specific country. The EOR becomes the official employer for payroll, contracts, and compliance. You manage the day-to-day work. They manage the legal framework.

In practical terms, an EOR helps you draft compliant contracts, process payroll correctly, stay aligned with labor regulations, and avoid the time and cost of opening a local entity.

If you are specifically looking for an EOR in Saudi Arabia, you can review country-specific guidance.

If you are comparing providers across regions, explore Pebl’s global EOR services.

FAQs

Let’s answer these directly.

Is SAR 7,000 a good salary?

For a single professional in Riyadh, it generally covers standard living costs with moderate savings. In smaller cities, it stretches further.

Is SAR 3,000 or SAR 4,000 a good salary?

At SAR 3,000, you’re typically in entry-level or lower-skilled roles. In major cities, you will likely share accommodation. At SAR 4,000, you meet the recognized Saudi minimum wage threshold for private sector classification.

What is Saudi Arabia’s minimum and average income?

The recognized private sector minimum wage threshold for Saudi nationals is SAR 4,000per month. Average private sector wages for Saudi nationals are close to SAR 9,600 monthly, based on recent labor market releases.

Who is richer, Saudi Arabia or the U.S.?

The United States has a higher GDP and higher GDP per capita overall. Saudi Arabia remains a high-income economy within its region, and the absence of personal income tax for most employees changes how take-home pay feels in practice.

Your next step: Compare, calculate, and hire with confidence

When hiring in Saudi Arabia, benchmark against sector data, minimum wage thresholds, and market demand. Do not rely on a single average figure.

Clear benchmarks lead to smarter decisions.

How Pebl helps you hire and pay in Saudi Arabia

When you expand into Saudi Arabia, salary is just one piece of the puzzle. You also need compliant contracts, accurate payroll, and a structure that aligns with local regulations.

Pebl’s employer of record services let you hire, onboard, and pay employees in Saudi Arabia without setting up your own entity. Through our global EOR services, you can offer competitive, market-aligned salaries while staying compliant with Saudi labor law.

You focus on building your team. We handle the compliance, payroll, and local employment framework behind the scenes.

If Saudi Arabia is part of your growth plan, let’s chat about how we can help you move forward with clarity and confidence.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

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