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MHRSD's 'enhanced Nitaqat' initiative will create 340,000 jobs by 2024

Princess Tarfa

The Ministry of Human Resources and Social Development (MHRSD) has introduced the ‘updated Nitaqat' initiative, which is in accord with the labor market strategy, which seeks to improve market efficiency and create new attractive jobs for residents.

The improved system has three major advantages, which are as follows:

First of all, a defined localization strategy for the next three years to improve organizational stability in private-sector firms;

Second, instead of categorizing businesses into predetermined and fixed sizes, the association between the number of staff and the desired Saudization ratio at each company now depends on a linear equation in sync with the number of workers at that company.

Third, a simplified program designed to improve user experience by merging common tasks, which now stand at 32 rather than 85 inside Nitaqat.

The latest update is consistent with past localization plans released by the ministry previously, as it will offer more than 340,000 employments by 2024, as per a report shared from the ministry.

The Nitaqat program was established in the year 2011 to encourage employment localization and to set a minimum salary for nationals working in the private sector.

The minimum salary was raised to SR3,000, with the goal of reaching SR4,000 by the start of the second quarter of 2021.

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