Saudi Arabia Clarifies Method for Calculating Saudization Percentage under the Nitaqat Programme
Type
E-journal
Date
4 Mar 2015
Jurisdiction
Saudi Arabia
Taxonomy
General Employment & Labour Law, General Immigration & Nationality
Copyright
LexisNexis
Relevant company
Fragomen Middle East
Analysis
Saudi national employees will now reflect in their employers' work force as soon as they are registered with the General Organisation for Social Insurance. However, the company's overall Saudisation rate for the purposes of the Nitaqat programme will be calculated based on the average of the weekly Saudisation rate over a period of 26 weeks.
As reported in a previous alert, Saudi nationals will now reflect in their employers' work force as soon as they are employed and registered with the General Organisation for Social Insurance (GOSI). However, Nitaqat percentages would now be calculated over a period of 26 weeks. In essence, an entity's Nitaqat rating is based on the average weekly Saudisation rate over a 26-week period.