New Balanced Nitaqat System KSA 2016

Prepared by;

Numan Ahmad Bhatti

December 01, 2016

نطاقات الموزون

1. Introduction to New Balance Nitaqat System 20162. Color Categories & Points3. Color Categories & Benefits4. Calculation

a) Saudization Percentageb) Female Saudi National Percentagec) Saudi National Retention Rated) Average Wage of Saudi Nationale) Saudi Nationals with High Wages

5. New Balanced Nitaqat Calculator

Covered:

Introduction to New Balanced Nitaqat System 2016

1. New Nitaqat System 20161. Saudization Percentage 1% = 10 points

2. Female Saudi National Percentage 1% = 2 points

3. Saudi National Retention Rate 1 year = 4 points

4. Average Wage of Saudi National SR 1,000 = 6 points

5. Saudi National with High Wages 1% = 0.1 point

Source: MOL website http://nitaqat.mol.gov.sa/Pages/Default.aspx

Introduction to

Max = 1000 points

Max = 200 points

Max = 100 points

Max = 270 points

Max = 10 points

Based on last 26 weeks

Assuming max. 25 years

Assuming max. SR 45,000/Month

Color Categories – Points & Benefits

2. Color Categories & Points

Platinum

Category Points

Green

Yellow

Red

High Green Medium Green Low Green

Above 175

106 - 135136 - 175

0 - 35

36 - 75

76 - 105

Source: MOL Website ; https://mlsd.gov.sa/Services/Inquiry/NitaqatPointsCalculator.aspx

3. Categories & Benefits

Benefits:• Complete freedom in hiring foreign employees.• Freedom to renew work permits of foreign employees.• Freedom to issue new Visas.• Freedom to change employees profession.• Condition-free Visa transfer.• Freedom to hire employees from Red and Yellow zones.• Extension of One year in case of expiration of certificates of zakat,

income or license.

PlatinumCategory

Above 175Points

Source: MOL Website: http://nitaqat.mol.gov.sa/Documents/NitaqatManual.pdf

3. Categories & Benefits

• Freedom to apply for new Visas • Freedom to change foreign workers profession except those restricted

by the government.• Freedom to renew work permits.• Freedom to hire employees from Red and Yellow zones and transfer

their visas. • Freedom of six months extension in case of expiration of certificates

for zakat and income, license for municipal or other activity.• Can apply for electronic Visa request after 4 weeks from the

acceptance of MOL on the previous request.

GreenCategory

Points High Green 136 - 175Medium

Green 106 - 135 Low Green 76 - 105

Source: MOL Website: http://nitaqat.mol.gov.sa/Documents/NitaqatManual.pdf

Benefits:

Note: No separate information found related to High Green & Medium Green.

3. Categories & Benefits

• Freedom to change foreign workers profession.• Freedom to renew work permits.• Freedom to hire employees from other employers under Red and Yellow

zones and transfer their visas. • Freedom of six months extension in case of expiration of certificates for

zakat, income or baladia.

GreenCategory

Points High Green Medium Green Low Green106 - 135136 - 175 76 - 105

Punitive Measures:• Can not apply for new Visa applications.• Employee can take sponsorship transfer to the low green or below

organizations, without the approval of the current employer. Source: MOL Website: http://nitaqat.mol.gov.sa/Documents/NitaqatManual.pdf

Benefits:

3. Categories & Benefits

Incentive:

• Not free to issue new Visas.• Not free to transfer Visa and changing profession.• Employees barred from renewing their work permit after

completing six years.

YellowCategory

36 - 75Points

Punitive Measures:

• Free to issue One Visa after the departure of Two expatriates.

Source: MOL Website: http://nitaqat.mol.gov.sa/Documents/NitaqatManual.pdf

3. Categories & Benefits

Banned from:• Changing profession.• Transferring Visas.• Issuing new Visas.• Opening files for new branches.• Renewal of work permits

RedCategory

0 - 35Points

Punitive Measures:

Source: MOL Website: http://nitaqat.mol.gov.sa/Documents/NitaqatManual.pdf

Calculation

4a. Saudization Percentage during the last 26 weeks

Source: Example Data; Nitaqat System: MOL website http://nitaqat.mol.gov.sa/Pages/Default.aspx

New Nitaqat System

Average number of Expats = 5,000Average number of Saudis = 500

Average percentage of Saudis = 9.09%

1% = 10 points

x 10 =

Total Average number of Employees = 5500

9.09% 90.9 points

4b. Female Saudi National Percentage

Total No. of Female Saudi National = 150

Total No. of Employees = 5,900

Percentage of Female Saudi National = 2.54%

New Nitaqat System

1% = 2 points

x 2 =2.54% 5.08 points

Source: Example Data; Nitaqat System: MOL website http://nitaqat.mol.gov.sa/Pages/Default.aspx

4c. Saudi National Retention Rate (in years)

Average Sustainability of Saudi National = 3.08

New Nitaqat System

1 year = 4 points

x 4 =3.08 12.32 points

Source: Example Data; Nitaqat System: MOL website http://nitaqat.mol.gov.sa/Pages/Default.aspx

4d. Average Wage of Saudi National per monthNo. of Saudi Nationals = 450Total amount of Saudi wages ( Basic+TA+HRA ) = 2,540,897Average wage per Saudi per month= 5,646

New Nitaqat System

SR 1,000 = 6 points

x 0.006 =5646

1 Riyal = 6 ÷ 1000 = 0.006 points per SR 1

33.88 points

Source: Example Data; Nitaqat System: MOL website http://nitaqat.mol.gov.sa/Pages/Default.aspx

4e. Saudi Nationals with High WagesNo. of Employees = 5,900Top 25% of total employees = 1475Wage Frame within top 25% = 2,000 – 50,000No. of Saudis in the top 25% = 450Percentage of Saudi Nationals with high wages = 30.51%

New Nitaqat System

1 % = 0.1 point

x 0.1 =30.51% 3.05 points

Source: Example Data; Nitaqat System: MOL website http://nitaqat.mol.gov.sa/Pages/Default.aspx

5. Result as per the New Balanced Nitaqat Calculator

Source: https://www.mlsd.gov.sa/Services/Inquiry/NitaqatPointsCalculator.aspx

Arabic

Source: https://www.mlsd.gov.sa/Services/Inquiry/NitaqatPointsCalculator.aspx

English5. Result as per the New Balanced Nitaqat Calculator

Hello Friend,

The objective of this presentation is to get an idea how to calculate Saudization points as per new Nitaqat System specially for those who do not understand Arabic.

The calculation criteria depends on the activity and size of the organization. Calculations Methodology: The best of my understanding and research and for more detail understanding please refer to the links in the next page.

Note: The New Nitaqat System still not implemented.

You can share your feedback on sharefeedback0@gmail.com

Best Regards,Numan Ahmad Bhatti

References / Useful Links:

MOL Website : http://nitaqat.mol.gov.sa/Pages/Default.aspx

Nitaqat Manual : http://nitaqat.mol.gov.sa/Documents/1 20% 20% نطاقاتالموزون. PDFشرح

Nitaqat Detail : http://nitaqat.mol.gov.sa/Documents/NitaqatManual.pdf

Nitaqat Calculator : https://www.mlsd.gov.sa/Services/Inquiry/NitaqatPointsCalculator.aspx

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