Recent Employment Developments in KSA (Saudi Arabia)

The Saudi Ministry of Human Resources and Social Development (“MHRSD”) has introduced a number of recent regulatory changes which may impact the operations of a number of employers in the Kingdom of Saudi Arabia (“KSA”), aligning with Vision 2030 objectives. Below we provide further details on the latest developments regarding job advertisement, Saudisation and work permit classifications.

New Regulations for Job Advertising and Interview Processes in the Private Sector

In line with KSA’s continued efforts towards its Vision 2030 strategy to improve the labour market conditions within the private sector and in addition to the national policy of encouragement of opportunities and equality in treatment in employment introduced in January 2023, MHRSD has implemented comprehensive regulations governing the advertising of job vacancies and the conduct of job interviews within the private sector.  These measures are designed to promote fairness, transparency, and strict adherence to Saudi labor standards.  The regulations introduce specific requirements for employers, particularly in the areas of non-discrimination, licensing, and procedural conduct.

Key Provisions

• Non-Discrimination Requirements: All job advertisements and interview processes must be free from any form of discrimination, including but not limited to gender, disability, age, or marital status.  Employers are required to ensure that all recruitment activities provide equal opportunities to all applicants.
• Licensing and Advertising Channels: Only entities licensed by the MHRSD are authorized to broker or advertise employment opportunities for Saudi nationals.  Public job fairs or invitations outside of workplace premises require prior approval from the Saudi Conventions and Exhibitions General Authority.  Furthermore, all job advertisements must be published through the Ministry’s approved digital platforms, the company’s official website and social media accounts, or through licensed job fairs.
• Content Requirements for Job Advertisements: All advertised positions must be compatible with the Saudi Standard Classification of Occupations (“SSCO”) and each job advertisement must include the following:
  • a brief description of the establishment, including its name, activity, headquarters, and work location;
  • a clear job description, specifying the job title, duties, minimum educational qualifications, and required skills;
  • the number of years of experience required;
  • details regarding the application process, nature of work, working hours, and job benefits such as salary, allowances, leave entitlements, etc.;
  • the application deadline; and
  • instructions for electronic submission of job applications.
• Interview Procedures: Applicants must be notified of the interview type (in-person, remote, or by phone), date, and expected time at least three working days in advance.  Interview locations must be suitable, visible, and accessible, featuring open entrances and exits, adequate seating, occupational health and safety measures, electronic security or security guards, gender-specific restrooms, and drinking water.  Employers must also provide appropriate communication means and accessible facilities for applicants with disabilities.
• Interview Committee Requirements: Interviews must be conducted by a committee comprising at least two Saudi nationals, including a Human Resources specialist.  While non-Saudi specialists may participate, they must not constitute more than half of the committee’s members.
• Prohibited Interview Questions: Questions pertaining to personal freedoms or confidential information about previous employment are strictly prohibited during interviews.
• Documentation and Notification: Interview results must be documented for future reference.  Applicants are to be informed of the interview outcome through official channels within 30 days of the interview date.  In cases where an applicant is unsuccessful, the reasons for rejection must be clearly communicated.

Action Points for Employers

Employers are advised to:

• review and update recruitment policies and procedures to ensure compliance with the new regulations;
• ensure all job advertisements and interview processes adhere to the stipulated non-discrimination and content requirements;
• provide training for HR and recruitment staff on the new procedural and documentation standards; and
• prepare to offer reasonable accommodations for applicants with disabilities.

Employers are strongly encouraged to familiarize themselves with these new requirements to avoid penalties and to foster fair and transparent hiring practices.

Recent Saudisation Developments

The MHRSD continues to localise an increasing number of professions, with new Saudisation targets introduced for a number of sectors as set out below:

• Tourism – Saudisation will be implemented across 41 professions within the tourism sector in three phases, with quotas ranging from 30% to 100% depending on the specific role. The first phase is scheduled to begin on 22 April 2026, and the third phase will start in January 2028.
• Dental – From 27 July 2025, entities employing more than three dental professionals must ensure that 45% of these positions are filled by Saudi nationals.
• Engineering – From 27 July 2025, entities with more than five engineers are required to Saudise 30% of engineering roles.
• Accounting
• For entities employing more than five accountants, 40% of accounting roles must be Saudised from 27 October 2025, with the quota increasing by 10% annually until it reaches 70% by 27 October 2028.
• For entities employing three to four accountants, a 30% Saudisation quota will apply from 27 October 2029.
• Pharmacy – From 27 July 2025, the following Saudisation quotas apply, (i) hospitals – 65%, (ii) community pharmacies and medical complexes – 35%, and (iii) other pharmacy-related businesses – 55%.
• Healthcare – Saudisation requirements for four healthcare professions will increase in two phases. The first phase began on 17 April 2025 and applies to all hospitals and health facilities in Al Khobar, Dammam, Jeddah, Madinah, Makkah, and Riyadh, as well as large health facilities in other cities. The second phase will commence on 17 October 2025, extending to all other hospitals and healthcare facilities across Saudi Arabia. The affected professions and their respective quotas are (i) medical laboratories – 70%, (ii) physiotherapy – 80%, (iii) radiology – 65%, and (iv) therapeutic nutrition – 80%.

Action Points for Employers

Affected employers must review their current workforce and make necessary adjustments to ensure compliance with these Saudisation requirements. Failure to comply may result in fines and suspension of MHRSD services.

Work permit classification

The MHRSD has released the “Guidelines for Classification of Work Permits by Skill Categories” pursuant to Ministerial Resolution No. 4602 dated 10/01/1447H (corresponding to 5 July 2025). The new framework establishes a mandatory, three-tier skill classification (High-Skilled, Skilled, and Basic) that will apply to all non-Saudi workers currently in KSA as well as to future hires. Below is an overview of the principal features of the framework.

• New Three-Tier Skill Structure: All work permits will be automatically assigned one of three skill levels: (i) High-Skilled, (ii) Skilled, or (iii) Basic. The designation will display in an employer’s Qiwa account and will dictate the employee’s eligibility to remain in, or enter, KSA for work purposes.
•  Core Classification Criteria: Permits will be classified against five criteria: educational qualifications, professional experience, professional skills, remuneration, and age. For High-Skilled and Skilled permits, the MHRSD will also require compliance with the Professional Accreditation Program (qualification and/or skills verification) linked to the SSCO.
•  Occupational Alignment and Wage Thresholds: Work permits will be classified as follows:
• High-Skilled permits cover Groups 1–3 (Managers, Specialists, Technicians/Associate Professionals) and require a minimum wage to be determined by the MHRSD, plus a points-based system set by the MHRSD combining qualifications, experience, and wage.
• Skilled permits cover Groups 4–8 (Clerical, Service, Agricultural, Craft, Machine Operators) and require a lower wage threshold but still require skills verification.
• Basic permits apply primarily to Group 9 (Elementary Occupations) and impose an age cap of 60; permits for Groups 1–8 that fall below the Skilled wage threshold will also default to the Basic permits category.
• Implementation Timeline: The implementation timeline for the new framework is as follows:
• Phase 1 – 5 July 2025: Re-classification of all non-Saudi national employees currently employed in KSA based on their existing job titles and reported wages.
• Phase 2 – 3 August 2025: Automatic classification of all new entrants prior to their arrival in KSA.
•  Compliance Implications: Non-compliance with the new work permit classification framework may impede the issuance or renewal of work permits, affect Saudisation compliance, and expose establishments to enforcement action.

Action Points for Employers

Employers are advised to:

• Audit existing roles undertaken by non-Saudi nationals, wages, and qualifications against the SSCO and anticipated wage thresholds.
• Initiate Professional Accreditation for affected employees to avoid re-classification risks.
• Update employment contracts and Qiwa records to ensure job titles and remuneration accurately reflect the new criteria.
• Budget for potential wage adjustments to retain High-Skilled and Skilled talent.

Al Tamimi’s Employment & Incentives team in the KSA regularly advises on all aspects relating to Saudisation, workforce planning and employment issues that arise from time to time. If you require further information on the impact of these recent decisions on your business, or any other employment issue, please contact us using the contact details below.

Key Contacts

Mohsin Khan, Partner, mohsin.khan@tamimi.com

Hayat Rafique, Senior Associate, h.rafique@tamimi.com

Amane Mohammed, Associate,  amane.mohammed@tamimi.com