Dec 9, 2021 2 min read

Saudi Arabia Payroll Outsourcing Alert

Saudi Arabia – NITAQAT Program 2022

The Saudi Ministry of Human Resources and Social Development’s (MHRSD) has launched a revised version of the Saudization program NITAQAT. The second version hopes to provide 340,000 jobs by 2024 and simplifies the compliance rules for businesses. The NITAQAT program is one of the most important initiatives undertaken by MHRSD. It was first launched in 2011 to encourage the localization of jobs and set a minimum wage for Saudis in the private sector. The second version of the program was developed in partnership with the private sector, a main partner in the ministry’s labor market decisions.

The new NITAQAT program aims to balance the relationships between the number of employees and required localization rate by providing attractive job offers and increasing labor market efficiency.

The new Program version of the NITAQAT contains the following new features:

Employers can verify their Saudization requirement at the following website:

https://mol.gov.sa/Services/Inquiry/NitaqatCalculatorMotawar.aspx

The formula for calculating the applicable Saudization rate is provides below:

The Liner Formula:      X = M ln(X)+Y

Company ActivitiesFixed value(H) Year 1(H) Year 2(H) Year 3
Agricultural & Animal Productions0.5813.3815.3818.38
Air I Maritime Transportation1.8645.3847.3850.38
Business Services2.1937.1242.1247.12
Cafe1.6722.2428.5434.66
Catering Services1.6719.2522.4725.60
College Education0.4375.3775.3677.37
Communication infrastructure20.0023.0026.00
Communication Maintenance & Operations39.0020.3323.3326.33
Communication solutions2.9137.0240.0242.02
Constructions17.0018.0020.00
Fast food Restaurants & Ice Creem1.6720.8725.7730.52
Financial institutions2.6062.0062.0062.00
Foreign schools2.3028.5731.5734.57
Fuel Station0.5621.5923.5924.59
Health Services0.3532.2433.2433.24
Industrial2.0820.4726.4729.47
IT infrastructure3.6138.0038.0038.00
IT Maintenance & Operations4.8522.4225.4228.42
IT solutions2.9137.0240.0242.02
Maintenance; Operations0.4824.9628.9631.96
Mines and Quarries6.0021.0021.0021.00
Personal Services4.4021.6325.6325.63
Postal Activities1.0130.5032.5034.50
Recruitment0.3480.5080.5080.50
Restaurants1.6718.8621.6724.41
Schools for Boys1.3150.2753.2756.27
Schools for Girls & Kindergarten89.5690.5692.56
Security0.3480.5080.5080.50
Social Services3.5028.7432.7435.74
Tourism & Leisure2.5930.9035.9039.90
Transportation and Storage1.5022.8230.8237.82
Wholesale and Retail2.6726.9133.9140.91
Women's Goods & Cellphone89.0089.0089.00

Mercans’ Saudi Arabia Payroll Outsourcing Solutions

While Mercans’ KSA Payroll Outsourcing alerts will allow you to stay on top the latest development in KSA’s payroll regulations, you should still get in touch with Mercans’ KSA payroll outsourcing, compliance, PEO/GEO and BPO specialists for a free consultation on setting up fully compliant payroll and HR functions. Better yet, outsource your payroll and HR activities in KSA to Mercans and our KSA payroll outsourcing experts will ensure that your employees will always be paid on time and in accordance with the KSA regulations.

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