• Employers to Benefit from Longer Time Frame for Saudization Calculation
  • April 7, 2015
  • Law Firm: Fragomen Del Rey Bernsen Loewy LLP - New York Office
  • Effective immediately, Saudi nationals will now be reflected in their employer’s workforce as soon as they are employed, registered with the General Organization for Social Insurance (GOSI) and up to date on their GOSI insurance premium. As a result of this change, the overall Nitaqat percentage will be based on an average weekly Saudization rate over a period of 26 weeks, according to a recently clarified resolution.

    Previously, Saudi national new hires had to be employed for 13 weeks to be reflected in the workforce and to count toward the employer’s Nitaqat percentage.

    The Nitaqat system governs the required amount of Saudi nationals in the workforce. Higher ranked entities are rewarded with certain sponsorship privileges and eased immigration requirements.

    This policy change does not affect the removal of employees from employers’ Saudization figures immediately upon the end of their assignment.

    What This Means for Employers

    Employers that maintain strong Saudization rates over a 26-week period should not be adversely affected by short-term reductions in Saudi national employee levels.