A salary scale is a table of grades that sets a minimum and a maximum basic salary for each grade, so people are hired and promoted by one rule rather than by individual bargaining. Above is a salary scale template for private-sector companies in Saudi Arabia, built from three numbers, with a sheet that compares your employees' pay with the scale, a workers' scale, and a short policy on how to apply it.
With a first grade start of SAR 4,000, a 25% step and a 40% grade range, grade 2 starts at SAR 5,000 and ends at SAR 7,000, with a midpoint of SAR 6,000 and an annual increment of SAR 250. The figures are examples for your company to change.
How to use the salary scale template
- Above the table, enter the first grade start, the step between grades, the grade range and the number of grades; the whole table is calculated.
- Edit the example job titles in each grade to match your company's jobs.
- Open the Pay vs scale sheet and enter each employee's salary and grade.
- Download the file with the Download Excel button; it keeps the formulas and a Settings sheet for the rates. Then complete the policy on its tab.
What a salary scale is
A grade is a group of jobs with similar responsibility, with a pay range from its start to its end; the annual increment moves an employee through that range. The benefit is internal fairness: two accountants in the same grade sit in the same range, and the gap between them is explained by experience and appraisal. The civil service scale is a fixed government table, while a private company in Saudi Arabia sets its own scale from its budget and market pay.
How to build a salary scale for your company
Group jobs into grades by responsibility, then set the first grade start, the step between grade starts, the range of each grade and the increment rate. With the figures shown:
| Grade | Start | Midpoint | End |
|---|---|---|---|
| 1 | 4,000 | 4,800 | 5,600 |
| 2 | 5,000 | 6,000 | 7,000 |
| 3 | 6,250 | 7,500 | 8,750 |
The overlap between grades is deliberate: grade 2 ends at 7,000 and grade 3 starts at 6,250, so an experienced employee can be promoted without a pay cut. Operational staff have their own Workers' salary scale tab with separate rates.
Basic salary and allowances in the scale
The scale sets basic salary; gross pay adds the allowances. In the example, at the grade 2 midpoint a 25% housing allowance (SAR 1,500) and a 10% transport allowance (SAR 600) bring gross pay to SAR 8,100. These rates are a suggested split, not legal rates. Some entitlements, such as end-of-service award and leave pay, are calculated on the wage as the Labor Law defines it, so check the relevant articles before deciding the share of basic in gross pay.
Reviewing and updating the scale
Review the scale once a year and compare grade starts with market pay for the same jobs in your city. The comparison sheet shows who sits outside their grade: Fahd's SAR 4,800 is below the grade 2 start, and Majed's SAR 9,000 is above the grade 3 end (8,750). Keep the year out of the file name; there is no official yearly private-sector table, so the scale stays one file whose figures you update.
Common mistakes
- Grades with no range, leaving no room for the annual increment.
- Hiring a newcomer above the midpoint while a longer-serving colleague sits at the grade start.
- A scale written once and never compared with actual salaries.
Labor Law notes
The Labor Law does not require private-sector companies to have a salary scale, but it requires the wage to be stated in the employment contract. Counting a Saudi employee in the Nitaqat programme depends on a minimum wage set by the Ministry of Human Resources and Social Development; check the current figure with the ministry before setting the first grade start. The increment rate is an internal decision written into the company's work regulations.
When headcount grows and salaries sit in scattered files
Microtec builds accounting software for businesses in the Kingdom, including an HR module that keeps employee details and salaries in one place.
Frequently asked questions
Is a salary scale mandatory in the private sector?
No. Each company sets its own scale or works without one. What the law requires is that the wage is written into the employment contract, while keeping in mind the Nitaqat condition for counting a Saudi employee.
How many grades should a salary scale have?
A small business needs about five grades, and a mid-size company eight to twelve. Choose the Small business or Mid-size company example above, or change the number of grades above the table.
Does the salary scale template suit a small business?
Yes. With five grades and a 20% step the scale starts at SAR 4,000, enough to place cashier, accountant, supervisor and manager pay under one rule before the team grows.
Should the salary scale be shared with employees?
That is a management decision. Some companies publish grades and ranges and keep individual salaries confidential; the policy tab has a Disclosure and confidentiality clause you can switch on or off.