Saudi Arabia: Moving Average for Calculating Company's Nitaqat Percentage Removed

Analysis

From 22 February 2015, Saudi nationals are expected to count towards a company's Saudisation percentage as soon as they are employed and registered with the General Organisation for Social Insurance. Previously, Saudi national new hires would only count towards their employers' Saudisation percentage after 13 weeks of employment.

Saudi nationals are expected to count towards their employers' Saudisation percentage as soon as they are employed and registered with the General Organisation for Social Insurance, according to Saudi Arabia Ministerial Decision No. 1408/1435 which is expected to be implemented on 22 February 2015. The Decision eliminates the previous Nitaqat policy of using a rolling average when hiring new Saudi national employees.

Previously, the process dictated that Saudi national new hires would only count toward their employers' Saudisation percentage after a period of 13 weeks. Although this period was to be extended to 26 weeks, it is now expected to be removed altogether.

Although no additional details pertaining to de-registration are currently available, it is anticipated employees will be removed from their employers' Saudisation figure immediately on the end of their employment.

What This Means for Employers