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Saudi Arabia Introduces New Skill-Based Work Permit System

Saudi Arabia is implementing a new work permit classification system based on skill levels, effective July 5, 2025, for current foreign employees and August 3, 2025, for new hires. The system categorizes permits into high-skilled, skilled, and basic levels, each with specific requirements related to occupation type, minimum salary (yet to be determined), and professional accreditation. High-skilled roles require a points-based score considering education and experience, while basic roles have an age limit of 60. Employers can request corrections if a classification is inaccurate, and the skill level will be updated upon verification.

The introduction of this merit-based system necessitates a thorough review of both existing and prospective foreign national workers to ensure their job titles, contracts, and qualifications align with the new standards. It remains to be seen whether this new classification will offer tangible operational or cost benefits for employers or foreign workers, as Saudi Arabia has not yet indicated if the different skill levels will result in varying entitlements, rights, or processing advantages.

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