Salaries in Saudi Arabia are expected to rise between 2% and 4% in 2025, as companies prioritize total compensation packages and employee benefits over pure pay increases, according to leading recruitment experts.
After a 4% average salary increase in 2024, salaries are projected to grow by 2% this year, says recruitment firm Cooper Fitch. On average, pay levels in Saudi Arabia remain 15% to 20% higher than in Dubai (UAE), notes Trefor Murphy, founder and CEO of Cooper Fitch.
“Companies see Saudi Arabia as modernizing quickly, with improved quality of life, so the pressure to continuously raise salaries is easing,” Murphy says. “A CFO in the Kingdom may earn more than anywhere else globally.”
Meanwhile, Mercer projects a 4% salary increase across sectors in 2025, based on data from more than 700 organizations.
Vision 2030 Drives Hiring Boom
Saudi Arabia’s Vision 2030 transformation has positioned the Kingdom as a top destination for global firms, particularly in sectors like renewable energy, logistics, tourism, and entertainment. These megaprojects are driving massive demand for specialized talent.
“Companies are competing aggressively for talent,” says Nevin Lewis, CEO of Black & Grey HR. “Salary increases of 4% to 6% are common, especially in growth sectors. And it’s not hype—companies are paying more to secure top-tier expertise.”
Despite rising costs of living, salary inflation is no longer the primary motivator for professionals relocating to the Kingdom. “Inflation and salary growth are separate forces,” Murphy notes.
Hiring Outlook for 2025
According to Mercer’s Total Remuneration Survey, nearly 40% of companies in Saudi Arabia plan to increase headcount in 2025. Skills in sales, marketing, finance, and data analytics are in high demand and difficult to retain.
Cooper Fitch also highlights talent availability as a key challenge, with international recruitment expected to continue playing a critical role.
Which Sectors Will See the Biggest Raises?
Cooper Fitch reports that 46% of companies increased salaries in 2024, with 8.5% granting hikes over 10%.
In 2025, salary increases are expected as follows:
- Energy sector: 4.3%
- Life sciences & tech: 4.2%
- Marketing & PR: 10%+
- Green energy & logistics: 10%+
- Public sector, defence, aviation: 5%
- Hospitality, engineering, tourism: 0%–5%
Bonus Expectations and Employee Benefits
Short-term incentives remain part of compensation in dynamic sectors such as tech and finance, often equal to 1–2 months’ salary.
Top executives may receive fixed salaries plus performance-based incentives, though generous expat-style benefits are less common today.
Employers are now focusing on training, development, and family-friendly perks, including schooling allowances and housing support, says Mercer’s Andrew El Zein. Training in artificial intelligence is expected to be a major priority in 2025.
As infrastructure, healthcare, and lifestyle offerings improve in cities like Riyadh and Jeddah, more professionals are choosing to live—and not just commute—to Saudi Arabia for work.
