Nitaqat and the Minimum Wage for Counting a Saudi Employee Toward Saudization
How a Saudi employee is counted in your Saudization ratio, when they count as a full or half worker, and how your establishment's Nitaqat band affects its services and visas.
Nitaqat is the program run by the Ministry of Human Resources and Social Development to measure how well establishments meet their localization targets. It is not enough for a Saudi employee's name to appear in your records for them to count in your Saudization ratio. There are clear conditions, the most important of which are the wage level and the period of GOSI registration. Understanding these rules precisely is what determines your establishment's band, and therefore its ability to issue visas, transfer sponsorships, and access government services.
The core rule revolves around a wage threshold. A Saudi employee who earns a monthly wage of at least 4,000 riyals counts as one full worker, while someone earning between 3,000 and 4,000 riyals counts as only half a worker. An employee earning less than 3,000 riyals does not count at all in the Saudization ratio. There are also special categories that count as more than one worker to encourage their employment.
This guide explains how a Saudi employee is counted, which categories count for more, the Nitaqat bands (platinum, green, and red), and the effect of each band on your establishment, along with practical steps to improve your position.
Browse the HR templatesHow a Saudi employee is counted toward Saudization
Nitaqat ties an employee's count to their actual wage as registered with GOSI, not to their job title alone. The rule is built on three wage tiers that determine whether the employee counts in full, as half, or not at all.
- A monthly wage of at least 4,000 riyals: the Saudi employee counts as one full worker in the Saudization ratio.
- A monthly wage between 3,000 and 4,000 riyals: the employee counts as only half a worker (0.5).
- A monthly wage below 3,000 riyals: the employee does not count toward the Saudization ratio at all, even though they remain on the establishment's records.
- The employee must remain registered with GOSI for a meaningful period (generally not less than three months) before they count toward the establishment's ratio.
Categories that count as more than one employee
To encourage hiring certain priority groups, Nitaqat gives extra weight to their count, so one such employee counts as more than one full worker when the conditions are met. The most notable categories are:
- Saudis with disabilities: one such employee counts as four workers when the wage and registration conditions are met.
- Released prisoners whom the establishment employs under approved programs, who are given preferential counting to encourage their reintegration into the labor market.
- The details and ratios of these counts change from time to time by ministerial decision, so it is advisable to verify the current value for each category before building a Saudization plan around it.
The Nitaqat bands and their effect on the establishment
After your Saudi employees are counted under the rules above, your establishment is classified into a band that reflects how well it meets localization targets compared with peers of the same activity and size. The higher the band, the wider the establishment's services on the Qiwa platform and with the Ministry of Human Resources.
- Platinum band: the highest level of compliance, granting the establishment the widest privileges in issuing visas, transferring sponsorships, renewing work permits, and changing professions with virtually no restrictions.
- Green band: good compliance, where the establishment enjoys most services, including the ability to issue new visas and transfer expatriate workers to it.
- Red (low) band: failure to meet the required level of Saudization, where the establishment is barred from issuing visas and renewing work permits, and its workers may transfer to other establishments without its consent.
How the band affects services and visas
The band is not a mere label. It directly controls your establishment's ability to recruit and operate. Among the things most affected by the band are:
- Issuing new visas to recruit expatriate workers: available in platinum and green, forbidden in red.
- Transferring expatriate workers' services to or from your establishment: broader in higher bands and restricted in the red band.
- Renewing work permits and changing professions: flexible in higher bands and obstructed or forbidden in the red band.
- Priority in government support, initiatives, and employment programs, where higher-band establishments come first.
Practical steps to improve your standing in Nitaqat
- Review your Saudi employees' wages in GOSI, and make sure anyone you want counted in full earns 4,000 riyals or more, and anyone you want counted as half earns at least 3,000 riyals.
- Correct any wages registered below the required threshold if the reality differs, because the wage registered with GOSI is what is relied on in the count.
- Target hiring categories that count as more than one worker (such as people with disabilities) within a realistic plan to raise your ratio more quickly.
- Document the employment relationship with a compliant written contract and a clear work regulation, to retain your Saudi employees and support their continued GOSI registration.
- Monitor your establishment's band regularly on the Qiwa platform, and watch how close you are to the next band's threshold so you can act before slipping into a lower band.
Frequently asked questions
Does a low-wage Saudi employee count at all?
If a Saudi employee earns less than 3,000 riyals a month, they do not count in the Saudization ratio even though they remain employed. Someone earning between 3,000 and 4,000 riyals counts as half a worker, and only an employee earning 4,000 riyals or more counts in full.
What happens if my establishment falls into the red band?
An establishment in the red band is barred from issuing new visas, renewing work permits, and changing professions, and some of its expatriate workers may transfer to other establishments without its consent. You should therefore raise your Saudization ratio quickly through correct hiring and proper registered wages.
Does hiring Saudis with disabilities really raise my ratio?
Yes. A Saudi employee with a disability counts as four workers when the wage and GOSI registration conditions are met, which raises the Saudization ratio more than an ordinary employee does. It is advisable to verify the current value before relying on it in your plan, since the details may change by ministerial decision.
How long must an employee be GOSI-registered before they count?
A Saudi employee must remain registered with GOSI for a meaningful period before they count toward the establishment's ratio, usually not less than three months. It is best to verify the applicable period at the time of counting, since it may differ according to the rules in force.
This guide was prepared and reviewed by a lawyer licensed in the Kingdom. The content is general guidance, not legal advice; consult a licensed lawyer for your specific case. Where an Arabic and an English text exist, the Arabic text prevails.