Saudi Arabia Introduces Skill-Based Permit System for Expat Workers

A new skill-based permit system will soon change how expatriate workers are classified, with updated criteria set to apply to all newcomers starting from August 3rd. Existing workers have already begun to undergo the reclassification process, which started on June 18th and was scheduled for full implementation by July 6th.

The permit categories will be divided into three levels: high-skill, skilled, and basic. Factors such as educational background, age, job experience, skill set, and wage bracket will determine how a worker is placed within the system. A manual outlining the rules is currently available online for employers and employees to review.

This development is intended to regulate how expat skills are matched to job roles across sectors and to improve how workforce data is managed. The classification is also expected to support verification systems that ensure qualifications meet job expectations and salary structures.

Saudi Arabia’s labour market has undergone a series of reforms under the National Transformation Program, which falls under the larger Vision 2030 initiative. These shifts have focused heavily on workforce development and reducing mismatch between job functions and employee qualifications.