State employees in Saudi Arabia are to be given money to compensate for a new sales tax and a rise in fuel prices.
King Salman has ordered monthly payments of more than $260 (£190) for the next year.
The kingdom has roughly doubled domestic petrol prices and introduced a 5% tax on most goods and services, including food and utility bills.
The Saudi government wants to reduce its dependence on oil following recent turbulence in the crude oil market.
The United Arab Emirates (UAE) has also introduced a 5% sales tax.
The Saudi royal decree says citizens using private health and educations services will be exempt and the state will also pay tax on their first home purchase.
It also says military personnel serving on the front lines with Yemen will also receive a one-off payment of more than $1,000, reports BBC.