Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) has introduced a new classification system for work permits that will reshape how foreign workers are categorized and employed across the Kingdom. The reform, set to take effect from July 2025, is part of Saudi Arabia’s broader Vision 2030 strategy to modernize the labor market and strengthen workforce quality.

This initiative marks a major milestone in the country’s ongoing labor market transformation. It introduces a skill-based framework that classifies non-Saudi employees into different categories—such as Highly Skilled, Skilled, and Basic—based on a combination of qualifications, experience, and professional standards.

A New Framework for Work Permits in Saudi Arabia

Under the new system, each work permit will be classified according to specific criteria derived from the Saudi Standard Classification of Occupations (SSCO). The assessment will consider factors such as:

1. Educational background and professional certifications
2. Work experience and vocational skills
3. Wage level and employment history
4. Age and job category

By applying these standards, the MHRSD aims to ensure that the labor market better reflects skill levels, professional expertise, and actual job requirements. This step is also expected to promote fairer employment practices and help attract top global talent to Saudi Arabia.

Implementation Timeline

The system will roll out in two phases. The first phase begins in July 2025, covering current foreign workers, while the second phase in August 2025 applies to new hires. Employers are encouraged to review their workforce data and align employee classifications, salaries, and job titles with the new framework before the deadlines.

What It Means for Employers and Employees

For employers, this reform brings greater clarity to recruitment and compliance processes. It provides a structured way to evaluate and manage foreign talent, ensuring adherence to Saudi labor regulations.

For employees, the system offers more transparency and recognition. Workers’ qualifications, experience, and skills will be officially reflected in their work permits—creating a fairer, merit-based employment environment.

Supporting Vision 2030

This new classification system reflects Saudi Arabia’s commitment to building a modern, sustainable labor market that empowers both local and international talent. By linking work permits to skill levels, the MHRSD reinforces its vision of a competitive economy driven by knowledge, professionalism, and opportunity.

For more details, see the official MHRSD document: Guidelines for Classification of Work Permits by Skill Categories (May 2025)