Saudi Arabia has introduced a new system for classifying work permits for foreign workers. The Ministry of Human Resources and Social Development (HRSD) says the change is part of a wider plan to match the country’s labour rules with its long-term development goals.
The new system categorizes foreign workers into three skill-based groups—high-skill, skilled, and basic—based on specific criteria. This, according to TraveBiz, is part of Saudi Arabia’s Vision 2030 and National Transformation Program, which seeks to diversify the economy and improve labour market outcomes.
Three-Tier Classification System Introduced
The classification system applies to all expatriate workers currently employed in the Kingdom as well as those entering for future employment. The system assesses workers using five main criteria: education, experience, skills, wage level, and age.
- Education refers to the academic qualifications relevant to the job role.
- Experience considers the number of years the worker has spent in related professional positions.
- Skills are determined based on certified technical or vocational competencies.
- Wage Level reflects whether the worker’s salary meets the thresholds defined for their skill category.
- Age is also taken into account during the issuance or renewal of work permits.
Each expatriate worker will be placed into one of the three skill categories during both initial assessment and permit renewal. This, according to reports, aims to improve alignment between job requirements and worker capabilities.
Implementation Timeline and Procedures
The system is being rolled out in phases. It began on June 18th, 2025, for current expatriate employees. As of July 6th, 2025, the framework is fully in effect for all existing foreign workers in the Kingdom. Beginning August 3rd, 2025, it will also apply to all new expatriates entering the country for employment.
A comprehensive guidance manual detailing the new system’s criteria and processes has been made available on the Ministry’s official website. The HRSD is encouraging employers, recruiters, and workers to review these materials for compliance and clarity.
Implications for Employers and Expatriates
The reclassification affects employment practices and recruitment standards across industries. Employers are now required to align their hiring processes with the classification framework. This includes adjusting job descriptions, required qualifications, and salary offerings in accordance with the worker categories.
For expatriates currently working in Saudi Arabia, the Ministry recommends reviewing individual qualifications and documentation to ensure compliance with the new system. Those planning to work in the country in the near future are advised to prepare their application materials to reflect the updated requirements.
Recruitment agencies will also need to adapt their procedures and services to meet the new classification criteria. This includes verifying that job candidates meet the required thresholds in education, experience, and skills.
Policy Goals and Broader Workforce Strategy
The HRSD has stated that the new classification system supports several policy objectives, including:
- Improving the match between job roles and worker skills
- Enhancing transparency and compliance in hiring practices
- Promoting merit-based hiring in the private sector
- Supporting long-term labour market planning
- Increasing job quality and mobility for foreign professionals
The policy is reported to help Saudi Arabia manage the structure and composition of its expatriate workforce more efficiently while fostering the transfer of knowledge and expertise to the local population.
This new approach is part of the country’s plan to boost the labour market’s efficiency, reduce mismatches between qualifications and job roles, and attract global talent to support national economic development.
Employers are urged to train HR and recruitment teams on the new framework, while workers are advised to stay informed about their classification status under the revised permit system.
5 Timely Ways Trump’s Travel Ban Disrupts International Plans
