Saudi Arabia is redefining the compensation model for expatriate workers as part of a long-term restructuring of its labour market under the Vision 2030 economic transformation plan.

Companies across the kingdom have begun phasing out the sizeable salary premiums that once characterised expatriate packages, replacing them with more measured, performance-driven structures designed to match a maturing and increasingly competitive economy.

Recruiters report that the substantial pay jumps once offered to foreign hires — often exceeding forty percent — have largely disappeared.

Instead, new packages tend to mirror local market benchmarks, with increases typically ranging from two to five percent.

The recalibration reflects a broader shift in Saudi Arabia’s investment priorities, as the country transitions from capital-intensive megaprojects toward higher-value sectors such as technology, logistics, mining and advanced manufacturing.

This changing landscape has eased demand for expatriate labour in fields like construction and large-scale engineering, where project activity has slowed.

At the same time, the government’s sustained drive to expand opportunities for Saudi nationals, supported by a growing pipeline of skilled local talent, has reduced employers’ reliance on imported expertise.

The new approach is built around efficiency, role-specific needs and prudent long-term planning.

Companies are now placing greater emphasis on non-monetary incentives, including career development, stability, family-oriented benefits and roles in industries positioned for long-term growth.

Specialists in technology, finance, energy and other high-skill sectors continue to receive competitive offers, though these are increasingly tailored and data-driven rather than built around universal expat premiums.

For the kingdom, the redesigned pay structure forms part of a broader effort to balance labour needs with economic diversification goals.

For expatriates, it signals an evolving marketplace where long-term prospects and professional advancement are becoming as important as headline salary figures.