Saudization: Saudi Labour Ministry to stop issuing work permits and recruitment

Saudi Arabia, October 18: The Ministry of Labor in Saudi Arabia has decided to charge 10% of the basic salary as tax from. This decision shall be implemented within six months. This would be applicable to the expatriates who earn more than 3000 Saudi Riyals, according to a news release from the Ministry.

The Ministry has also decided to strengthen Saudization by stopping recruitment and renewal of work permits for about 60 professions, and obliged companies and establishments to replace those occupying such jobs with Saudis over the next few months, and to limit sales on the sale profession to the local citizens and stop the recruitment for 23 commercial activities. Many people from other countries including India are working in Saudi Arabia and many are still trying to get an entry to the country for working there. The current decisions of the Ministry would become a big blow to such job aspirants.

Along with that, the Ministry of Labor in Saudi Arabia has resolved to launch launched an extensive campaign to reduce the number of expatriates working in the private sector by imposing fees on their jobs. This is intended to encourage private sector to employ Saudis, and to spend the revenue generated out of such fees favor the Human Resources Fund. this fund was was established to contribute to the nationalization (Saudization) of jobs in the Kingdom of Saudi Arabia.

The bank to which the salaries are transferred shall be collecting the tax.  Financial Authorities, represented by the Ministry of Finance, the Saudi Arabian Monetary Agency (SAMA) and other relevant authorities, has affirmed to carry out this project, automatically, within the specified period.

These are the professions included in the Saudization:

Human resources Manager, Personal Manager, Administration Manager, Training Manager, Purchase Manager, Labor and Labor Affairs Director, Industrial Relations Manager, Personal Relation Manager, Personal Affairs Specialist, Senior Human Resources Administrator, Personal Affairs Clerk, Stenographer and Typist, Employment Clerk, Attendance Clerk, Reception Clerk General, Reception Clerk Hotel, Reception Clerk Patients, Complaints Clerk, Administrative Clerk, Human Resources Agent, PRO, Administrative Assistant, Receptionist, Employment Unit Clerks, secretary, GRO, Administrative Assistant Employee, Data Enterer, Financial Auditor, Public Relation Professions, Office Jobs, Customs clearance Broker, Factor (Debt) Collector, Cashier, Exchange operator, Purchasing Representative, Store Keeper, Security Guard, Postman, Housing Supervisor, Massinger, Librarian, Teller/Cashier, Customer Cashier, Tourist Guide, Pharmacist, Assistant Pharmacist, Medical Secretary, Seller/Salesman General, Books Seller and Motor Show Salesman.

The list of activities blocked from recruitment

Pharmacy Sector, Women & Children Wear Shops, Men &Women Clothes, Men Wear, Toys, Women Garment, Sewing requirements and Accessories, Perfumery &Spices Trade, Oud Trade, Perfumes Trade, Flowers Trade, Gift Trading, Low Priced Goods, Furniture Trading, Shoes Trading, Watches Trading, Kiosks & Points of Sale in Shopping Centers, Stationary Shops, Private & Government School Cafeterias, Phones, Mobiles and Accessories, Frozen Chicken Trading, Events Rental, Car Decorating Items Trading, Auto Spare Parts, Tents, Paints Trading, Masonry and Plumbing Material Trading.