The Human Resources Development Fund (HADAF), which provides financial support for the minimum wage, has increased it from SR3,200 to SR4,000. The decision was made as part of the five brand-new modifications to the regulations for requesting "employment support" products from Saudi Arabia's private sector establishments, which the Human Resources Development Fund (HADAF) unveiled on Saturday.
In addition to continuing to promote and empower various business sectors, the latest updates are based on HADAF's new strategy to improve the sustainability of national human cadres in the labour market. The grace period restriction for filing a support request in the employment assistance product during the first 120 days of the employee's social insurance registration date was also eliminated as part of the five new improvements. The businesses may now file a request for help 90 days after the employee registered for social insurance (after the trial period ended).
According to HADAF, the establishments are responsible for paying the employee's full wages for the first three months of his employment (the first 90 days following the employee's social insurance registration date), provided that the application period for the employment support product is from the 91st to the 180th day following the employee's social insurance registration date.
Regarding the fifth update, HADAF reaffirmed that if 180 days have gone since the employee's social insurance registration, it would not accept any assistance requests. Starting on September 5, 2023, the controls will be updated to reflect the new support requests for the employment support product, according to HADAF, who also noted that the present supported beneficiaries would continue to receive assistance in accordance with the prior rules.
HADAF has introduced its new strategy in response to the difficulties and changes in the labour market, in an effort to increase efficiency, keep up with changes, and take into consideration the demands and objectives specific to various industries. In keeping with meeting the objectives of Saudi Arabia's Vision 2030 and the labour market plan, the new strategy also includes developing programmes and products to assist training, employment, and empowerment targeted at national cadres.
