Key Points
- Saudi Arabia introduces a three-tier classification system for foreign worker permits
- Categories include high skill, medium skill, and basic skill levels
- Phase 1 begins July 5, 2025, for current workers; Phase 2 starts August 3, 2025, for new hires
- Employers must update classifications via the Qiwa platform and ensure compliance
Overview
Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) had announced a significant update to its work permit framework. As part of the Kingdom’s Vision 2030 reform initiative, a new classification system will assign foreign national workers into three skill-based categories: high skill, medium skill, and basic skill.
The classification process evaluates a worker’s educational background, technical and vocational abilities, work experience, wage level, and age. This structured system is designed to enhance transparency in the labor market, attract top-tier global talent, and promote workforce alignment with the country’s long-term economic development goals.
Implementation will occur in two stages:
- Phase 1, starting on July 5, 2025, applies to all current foreign nationals employed in Saudi Arabia
- Phase 2, effective August 3, 2025, will apply to new foreign nationals entering the workforce
Employers operating in the Kingdom are now required to classify their workforce within the Qiwa platform accurately. Misclassification could lead to compliance issues or disruptions in employment authorization. Employees will have the opportunity to request a reclassification if they believe their categorization does not accurately reflect their qualifications.
The new framework advances the Kingdom’s Saudization objectives and supports a data-driven, merit-based labor ecosystem. By standardizing classifications and integrating workforce data, the Saudi government will be better positioned to plan, regulate, and optimize employment policy across key sectors.
Looking Ahead
Employers should begin reviewing their foreign national employee records and align classifications with the new guidelines before the Phase 1 launch. HR and compliance teams must familiarize themselves with Qiwa’s classification interface and be prepared for employee inquiries or reclassification requests. As the labor market transitions under this new system, companies may also need to adjust recruitment strategies to remain competitive and compliant. Ongoing monitoring of MHRSD guidance will be essential as Saudi Arabia continues refining its immigration and labor framework.
