New Nitaqat to Reduce Expats Workers in Private Sector

The New (Mawzoon) Balanced Nitaqat System program to be came in to effect from Dec 11 which is a part of Vision 2030 towards reducing unemployment rates, and achieve the targets of the national transformation program in 2020 as the first launch of the transition programs of the Ministry AMAL, seeking to improve the performance of the market and its development, raising employment quality, and generating decent jobs for the Saudis, and create a safe and attractive work environment, and the elimination of non-productive resettlement.

During a press conference held at the headquarters of the ministry in Riyadh: Deputy Labor and Social Development Minister Ahmed Al-Humaidan. “The labor market faces several challenges such as the high level of unemployment, higher vocational and exposure (strong dominance of expatriates who hold critical positions), low productivity in the labor market, the low percentage of women’s participation, and poor education outcomes not adapted to the needs of the labor market, which led the ministry to speed processing by taking measures to address the ongoing challenges in the labor market.

He added the ministry has sought to launch a range of new initiatives to address these challenges, including the new Nitaqat program called Mawzoon, which goes beyond the quantitative measurement of the rate of resettlement, so stimulating the labor market to increase wages and set Saudis rates in administrative functions and increase the duration of Sustainability and the appointment of Saudi women, stressing that the program Mawzoon also came to address the gradual recruitment of high levels of saudis mainly in higher nitaqat companies and that the rate of job creation is not currently sufficient to reduce unemployment, higher nitaqat companies must provide more job opportunities to Saudis.

new-nitaqat-mawzoon

Here is Major Points about new Mawzoon Nitaqat System:

  • The decision of “Mawzoon Nitaqat program”, applies to all installations starting from Sunday 12 Rabi Ul Awal 1438 AH corresponding to December 11, 2016, on the development of stimulating facilities for nationalization of jobs “Nitaqat” program, adding stimulate employment quality, as well as the quantitative factor commensurate with the needs of the labor market .
  • According to the resolution, calculation of  “Mawzoon Nitaqat” program points for each facility, based on five factors: the rate of resettlement in the facility, the average Saudi workers in the enterprise wage, and the percentage of localization of women in the business, functional and sustainability for the Saudis in the facility, and the percentage of Saudis with high wages.
  • To determined the scope of companies according to the new amendment which is done after calculating the total number of points achieved, according to schedules checks by the ministry of labor, in line with all the activity and size, according to labor market requirements.
  • The ministry  approved a new division of facilities for medium-sized enterprises, which become three categories according to the number of employees, namely: medium enterprises (Class A) from 50 to 99 workers, medium enterprises (Class B) from 100 to 199 workers, and established medium (c category) from 200 to 499 workers.
  • In preparation for the application of the weighted ranges program at all operating facilities to the labor market after six months, the ministry has prepared a virtual calculator to assist enterprises to calculate the scope of Mawzoon and compare, in order to work in the coming period to improve their Nitaqat in accordance with the quantitative and qualitative balance factors, to stay in safe Nitaqat, companies can Visit portal of electronic link: ministry Www.mlsd.gov.sa , then select the e – services, and then choose the default calculator for Balanced Nitaqat.

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