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Workers

Saudi Arabia Introduces Skill-Based Work Permit Classification System

Strategic Insights

— 2 min read

Saudi Arabia has introduced a new skill-based classification system for work permits, categorizing expatriate workers into High-Skill, Skilled, and Basic tiers, based on factors such as qualifications, experience, salary, and age. This shift from the decades-old iqama system aims to modernize the labor market, attract highly skilled workers, and improve efficiency. The new system is aligned with Saudi Vision 2030, focusing on attracting talent and regulating the workforce.

Key Takeaways:

  • The new skill-based classification system is mandatory for all new and renewed work permit applications, effective July 5th, 2025.
  • The system categorizes non-Saudi workers into three skill tiers: High-Skill, Skilled, and Basic, based on five criteria: Educational Qualifications, Professional Experience, Skills/Professional Accreditation, Monthly Wage, and Age.
  • Employers must ensure job offers align with the worker's qualifications and category, salary and role meet the classification criteria, and workers are accurately listed under the correct occupational group.
  • The classification is fully automated and managed via the Qiwa platform, a digital system under the Ministry of Human Resources.
  • Existing workers will be classified based on current wages and job roles (Phase 1), while new entrants will be evaluated under the new system before work permits are issued (Phase 2).
  • Each occupational group under the Saudi Standard Classification of Occupations (SSCO) maps to specific industries and job functions, providing a points-based evaluation to determine the worker's category.
  • The new system provides more clarity and transparency in job roles, better alignment between qualifications and job titles, and opportunities for skill-based progression for workers.
  • Employers will benefit from attracting and retaining skilled talent, simplifying HR compliance through digital tools, and aligning recruitment with Vision 2030 objectives.
  • If a worker's role or skill set doesn't match the assigned classification, their permit status could be impacted, making accurate classification crucial.

Statistics:

  • 100% of new and renewed work permit applications will be subject to the new skill-based classification system, effective July 5th, 2025.
  • 3 skill tiers: High-Skill, Skilled, and Basic, will be used to categorize non-Saudi workers.
  • 5 criteria: Educational Qualifications, Professional Experience, Skills/Professional Accreditation, Monthly Wage, and Age, will be used to evaluate workers' skill levels.
  • 1.2 million existing workers will be classified under Phase 1 of the rollout, based on current wages and job roles.
  • New entrants (Phase 2) will be evaluated under the new system before work permits are issued, starting August 3rd, 2025.

Sources:

  • "Saudi Arabia's shift from Iqama to Skill-Based Work Permits" by TOI World Desk
  • Saudi Ministry of Human Resources and Social Development (HRSD)
  • Qiwa platform
  • Saudi Standard Classification of Occupations (SSCO)

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