Saudi Arabia’s Qiwa platform, under the Ministry of Human Resources and Social Development, has clarified conditions for counting Saudi employees under the Nitaqat Saudization program and restrictions affecting the issuance of employment contracts. The clarification addresses contract history, Qiwa registration, registered salary, employee status, and simultaneous contracts.1
WHY THIS MATTERS
Employers that count Saudi employees toward their Nitaqat Saudization percentages may face additional administrative checks. HR and payroll teams may need to compare contract histories and registered salary information with their records before relying on an employee for Nitaqat counting. Recruitment and onboarding teams may also need to account for restrictions on issuing a further contract when an employee has multiple contracts.
Key Highlights
- Nitaqat counting: A Saudi employee’s employment contracts during the previous 52 weeks are required to not exceed five for the employee to be counted as one Saudi employee.
- Qiwa registration and salary: The employee is required to have a valid employment contract registered with Qiwa, and the total salary registered on the platform is expected to be at least Saudi riyals (SR) 4,000.
- Employee status: The stated counting conditions do not apply if the employee is registered as a part-time employee or a student.
- Issuing a further contract: The supplied account describes a separate restriction based on contracts entered into during a 365-day period beginning on the date of the employee’s first contract. The account’s wording about the seven-contract threshold and the timing of an eighth contract is inconsistent and requires confirmation before publication.
- Simultaneous contracts: A Saudi employee may hold a maximum of two active employment contracts at the same time. If two are active, one contract will be terminated before another can be concluded.
KPMG INSIGHTS
The distinction between the previous 52 weeks used for Nitaqat counting and the 365-day period described for contract issuance makes contract-history checks particularly important. The unresolved wording on the eighth contract also means employers may need to confirm the applicable Qiwa rule before planning a new hire or transfer.
In light of the changes, employers might consider the following:
- Reviewing Qiwa contract histories before relying on an employee for Nitaqat counting.
- Comparing registered salary information with payroll records.
- Checking active contracts before progressing recruitment or onboarding.
If assignees and/or their programme managers have any questions or concerns about the scope of the update, its application and potential impacts, and appropriate next steps, they should consult with their qualified tax or social security professional or a member of the GMS/People Services team with KPMG in the Lower Gulf (see the Contacts section).
ENDNOTE:
1 Saudi Expatriates, “Qiwa Clarifies New Saudi Contract Rules for Nitaqat: 5, 7 and 2 Limits,” published on September 27, 2026.
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