Saudization Compliance Policy
Investing in Saudi talent is no longer an option but a strategic path. Therefore, the Saudization compliance policy emphasizes alignment with national priorities in order to establish a stable work environment. It details the company's commitment to Saudization, Nitaqat, the targeted localization level, and related programs such as wage support and Tamheer.
Created by
Naif O. Alawbathani
|
Human Resources Adviser
Written by HR expertsFully customizableSaudi labor law ComplaintShare the calculator with an HR college
What’s included in the Saudization compliance policy?
Saudization compliance policy affirms the company's commitment to the Saudization program in all its requirements. This includes adherence to the mandated ratio, the types of targeted positions, and registration within Nitaqat program.
Given that the Saudization ratio is a critical factor in compliance, the policy outlines the localization level the company aims to achieve.
Furthermore, Saudization compliance policy mentions supporting government programs that the company benefits from to bolster employment.
The policy emphasizes the necessity of communication with local Saudization committees, the registration and continuous updating of company data, and real-time compliance with program changes.
The policy positions compliance with the Saudization program as a core tenet of social responsibility commitment. It ensures company’s commitment to maintaining an excellent classification in Nitaqat through genuine practices, avoiding ghost employment and other forms of ineffective compliance.
Saudization Compliance Policy - Table of contents
1. Saudization (Nitaqat) Compliance
2. Nitaqat Registration
3. Proactive Saudization Commitment
4. Engagement with Support Programs
5. Social Responsibility and Impact
6. Communication with Localization Committees
7. Avoidance of Fake Saudization
8. Supportive Program Enrollment for Employees
9. Reputation in Saudization Programs
Why do you need a Saudization compliance policy?
To enhance company image as a responsible employer.
To strengthen business stability and ensure sustainability.
Converting Saudization from an administrative burden to a growth tool.
To integrate into the long-term national economic formula.
How do you use the model?
Download the template and review the content.
Customize it with name, logo and position types within the company.
Share it with the HR department, including personnel officers.
Ensure compliance by getting the Saudization Compliance policy reviewed by a legal/HR expert.
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FAQ
What is the rule of Saudization?
Saudization rules differ by sector, license type, and company size. For instance, smaller companies (up to 5 employees) need at least one Saudi national, while larger entities face varying percentages based on activity – e.g., 65% in hospital pharmacies versus 30% in engineering. Staying informed about Nitaqat program updates is crucial.
What are categories based upon the Saudization compliance metric?
The Saudization compliance metric classifies companies into five categories: Platinum, High Green, Mid Green, Low Green, and Red, based on the nationalization percentage (% of Saudi employees) and the total number of employees.
Why is Saudization important?
Some Of the most important benefits of Saudization include: Reduces Unemployment: By encouraging private sector employment of Saudi citizens, Saudization lowers unemployment rates, fostering economic stability and social well-being among the local population. Drives Economic Diversification: Empowering Saudis in various private sector roles reduces reliance on foreign labor and non-renewable resources, fostering a more diverse and resilient economy. Boosts Investor Confidence: A skilled and stable local workforce increases the attractiveness of Saudi Arabia to both domestic and foreign investors, further fueling economic development. Stimulates Economic Growth: A larger employed Saudi population boosts spending on goods and services, directly contributing to the nation's gross domestic product growth. Enhances Social Stability: Lower unemployment and greater economic opportunities improve the quality of life for Saudi nationals, reducing social tensions and strengthening the country's global standing.
How to calculate Saudization?
Saudization rate is calculated by dividing the total averages of Saudi Employees in the entity’s branches by (the total of averages of Saudi employees in the entity’s branches + total averages of expatriate employees in the entity’s branches) x 100.
What is the difference between ranges in Nitaqat?
The enabled services of the Ministry of Human Resources and Social Development for an entity are determined based on its range in Nitaqat. Hera are a brief for each one: Platinum, High Green ,and Medium Green Range: Apply for new expatriate worker visas, Change expatriate workers’ occupations and renew work permit of existing expatriate workers, transfer expatriate workers’ sponsorship to the entity from any other entity, and immediate counting in Nitaqat program. Low Green Range: Renew work permit of existing expatriate workers and immediate counting in Nitaqat program. Red Range: No services available.