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      The Saudi Ministry of Human Resources and Social Development (HRSD) has issued a Ministerial Resolution No. (4602) dated (10/1/1447AH) introducing a classification system for expatriate work permits.

      Under this resolution, work permits are categorised into three principal skill levels: high-skill, skilled, and basic.  The reclassification of existing permits and the implementation of corresponding technical system upgrades commenced on 18 June 2025.  This framework applies to newly-arriving expatriate workers effective from 1 July 2025. 

      WHY THIS MATTERS

      This initiative introduces significant responsibilities, including updating employee records in line with the Saudi Standard Classification of Occupations (SSCO), using the Qiwa platform for compliance, and making sure that recruitment, compensation, and role definitions align with the new skills tiers.

      The classification supports “Saudization” efforts by highlighting which positions can be prioritised for local hires, and it encourages the attraction of highly-skilled talent while reducing dependency on low-skilled labour.

      For employees, the system provides transparency around job expectations and progression while promoting upskilling and professional accreditation to remain eligible for future employment in the kingdom.

      More Details

      This initiative categorises foreign workers into three tiers – high-skilled, skilled, and basic – based on qualifications, experience, wages, and age.  This classification aligns with the Saudi Standard Classification of Occupations (SSCO) and Vision 2030 workforce goals. 1

      The system is now mandatory for all new and existing work permit applications and renewals.  The HRSD has released official guidelines aiming to raise awareness among labour market stakeholders (establishments/non-Saudi workers) regarding this new initiative and highlighting the criteria of classification as well as the methodology used.2

      The system is integrated with HRSD’s digital platforms, including the Qiwa and Mudad systems, and is linked to the Saudi Skills Taxonomy.

      KPMG INSIGHTS

      Considerations for Employers

      Employers may wish to consider the importance of:

      • reclassifying all existing expat employees in the Qiwa system;
      • having new hires meet skill-level eligibility before permit issuance;
      • enabling better workforce planning, Saudization alignment, and faster processing;
      • consequences of non-compliance, which could result in permit delays or rejections.

      KPMG Middle East will monitor developments and endeavour to keep readers of GMS Flash Alert informed as developments occur.

      Organisations operating or that wish to operate in Saudi Arabia with questions or concerns are advised to contact the Ministry of Human Resources and Social Development, qualified immigration advisers, or a member of the immigration team with KPMG in the Lower Gulf (see the Contacts section).

      Contacts

      Pranav Shah
      Pranav Shah

      Director

      KPMG in the United Arab Emirates

      Samar Abdelrahman
      Samar Abdelrahman

      Associate Director

      KPMG in the United Arab Emirates

      More Information

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      * Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.

      The information contained in this newsletter was submitted by the KPMG International member firm in the United Arab Emirates.

      GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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