Saudi Arabia has launched a major reform to its labor market with the introduction of a new skill-based classification system for expatriate work permits. According to the Ministry of Human Resources and Social Development (HRSD), this system marks a major shift in how foreign workers are evaluated, hired, and managed across the Kingdom.
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New Expatriate Work Permit Categorization: What to Know
This updated system is part of Saudi Arabia’s broader Vision 2030 and National Transformation Program. It classifies expat workers into three skill categories:
- Basic
- Skilled
- High-Skilled
The new framework aims to align labor planning with national economic goals, encourage skills transfer to Saudi citizens, and support economic diversification.
Rollout Timeline: Key Dates to Remember
- June 18, 2025: Classification began for current expat workers
- July 6, 2025: System fully enforced for all existing expats
- August 3, 2025: System applies to all newly arriving foreign workers
The Ministry has published a detailed guideline on its website to help both employers and workers understand the new structure.
How Expat Workers Will Be Categorized
Each foreign employee will be classified based on five key criteria:
| Measure | Details |
|---|---|
| Education | Required academic degrees or certifications |
| Skill | Years of experience in relevant positions |
| Qualifications | Recognized technical or professional certifications |
| Income Level | Salary aligned with the skill category thresholds |
| Age | Age at the time of permit issuance |
These standards will be reviewed during both initial applications and renewal of work permits, ensuring that workers are placed in the correct classification.
Why This Matters to Employers and Expats
This is more than just a paperwork update. The new system will directly influence how companies hire, pay, and retain their foreign talent.
For Employers:
- Must align job roles and offers with classification criteria
- HR departments must update internal hiring protocols
- Recruitment agencies must revise their processes accordingly
For Expats:
- Must ensure their documents and certifications are up to date
- May need to pursue additional qualifications or salary adjustments
- Must check their categorization under the new system
Objectives Behind the New Classification System
The HRSD outlined several strategic goals for this reform:
- Improve employment-to-skill matching
- Increase transparency and compliance in recruitment
- Encourage merit-based hiring practices
- Support long-term workforce planning
- Promote quality jobs and mobility for international professionals
Tied to Broader Economic Development Goals
This reform is part of a wider initiative to:
- Develop local Saudi talent
- Attract highly skilled international professionals
- Boost labor market efficiency
- Minimize gaps between education and job functions
By implementing this skill-tiered framework, Saudi Arabia seeks to balance the need for global expertise with its commitment to national development and knowledge transfer.
What Employers and Workers Should Do Now
For Employers:
- Update HR systems and job descriptions to reflect the new framework
- Adjust salaries and employment offers to meet skill-based classifications
- Train hiring teams to use the new criteria
For Expats:
- Review your current work status under the new structure
- Ensure all documents meet the updated requirements
- Consider additional certifications if needed to upgrade classification
- Stay informed through the Ministry’s official resources
Conclusion
Saudi Arabia’s new skill-based work permit system is designed to modernize its labor market and better align foreign talent with national economic needs. Whether you’re an employer or a foreign worker, now is the time to review, adapt, and prepare for this change.
