The Introduction of Weighted Nitaqat

Analysis

Five years on from the introduction of the Nitaqat system, the Ministry of Labour has announced the implementation of 'weighted Nitaqat' which is designed to promote quality employment for Saudi nationals. To date, the focus of Nitaqat has been to increase the number of Saudi nationals employed within the private sector. Now the Ministry feels that it is time to address concerns regarding the level of roles Saudi nationals are being engaged to do. Weighted Nitaqat is due to be introduced on 12 Rabie Al Awal (approximately corresponding to 11 December 2016).

Under the new system there will be five criteria according to which an employer's compliance rating will be decided upon:

1 The number of Saudi nationals employed in the business;

2 The average salary paid to Saudi employees in the business (total salaries paid to Saudi nationals divided by the number of Saudi nationals);

3 The number or percentage of Saudi women employed in the business (number of women divided by the total number of employees);