Starting July 1, 2025, Saudi Arabia is implementing a new classification-based work permit system for foreign workers. Announced by the Ministry of Human Resources and Social Development (HRSD), the reform is already in effect as of June 18 for expatriates currently residing in the Kingdom and marks a major shift in the management of international labor.
A Skill-Based, Merit-Oriented System
The new framework replaces the previous one-size-fits-all approach, categorizing foreign workers into three levels: highly skilled, skilled, and basic-level. Work permit issuance and renewal will now depend on five key factors:
• Educational background
• Professional experience
• Technical skills
• Salary level
• Age
Each category has distinct eligibility criteria. Highly skilled workers must fall within professional groups 1 to 3, pass the Professional Accreditation Program, and achieve a minimum score in a technical evaluation. Skilled workers (groups 4 to 8) must meet higher salary thresholds, while basic-level roles (group 9) require accreditation and have an upper age limit of 60.
Unified Iqama Codes for Role Consistency
To support the classification, Saudi Arabia has introduced a unified list of Iqama professional codes to align job titles with actual responsibilities. The system includes 10 main occupational groups, each broken down into subcategories and defined job roles.
For current expatriates, it is crucial to ensure that the Iqama profession code accurately reflects their real job title to avoid penalties during inspections. The government offers several official channels to verify or update this information.
A Strategic Move Under Vision 2030
This reform is part of Saudi Arabia’s broader strategy under Vision 2030 and the National Transformation Program to modernize the labor market. As stated by Minister Ahmed Al-Rajhi, the goal is to enhance the quality of the local workforce, attract global talent, and align the Kingdom’s labor system with international standards.
By shifting toward a merit-based model, the government aims to:
• Strengthen hiring transparency and accountability
• Bridge the skills gap across sectors
• Support long-term workforce planning
• Boost innovation and competitiveness in the private sector
What Employers Need to Know
Companies in industries that rely heavily on foreign labor—such as construction, logistics, healthcare, and retail—will need to revisit their HR strategies, hiring processes, and budgeting. The inclusion of a formal Professional Accreditation Program also brings a new level of transparency and reliability to recruitment.
For employers looking to attract top international talent, the updated system is designed to streamline hiring while reinforcing the importance of qualifications and skills.
Looking Ahead
The Saudi government is currently gathering feedback from local and international stakeholders, and further refinements to the system are expected.
At a broader level, this reform positions Saudi Arabia as a more competitive and attractive destination for skilled professionals seeking long-term career opportunities in a rapidly evolving market.