Saudi Arabia New Work Permit Classification System for Foreign Skilled Talent: A Guide for Employers Using EOR Services

Saudi Arabia has introduced a new skill-based work permit classification system for foreign workers. This change affects how work permits are categorized, issued, and renewed, and it has direct implications for employers hiring foreign talent.

For companies using an Saudi Arabia Employer of Record (EOR) like Tarmack, understanding this system is essential to ensure compliance, avoid delays, and hire efficiently in the Kingdom.

Overview of the Classification System

The new system classifies foreign workers based on skill level rather than treating all expatriates the same. There are three main categories:

1. High-Skill: Senior professionals, specialists, and executives in critical roles.
2. Skilled: Mid-level professionals, technical staff, and supervisors.
3. Basic: Entry-level workers or roles with minimal formal requirements.

This approach aligns workforce planning with the Kingdom’s labour market needs and supports broader objectives to attract highly skilled talent, improve productivity, and promote knowledge transfer to local employees.

How the Classification Works

Classification is determined by multiple factors, including:

• Educational qualifications
• Relevant professional experience
• Salary level
• Technical skills or professional accreditation where required
• Age in certain cases

Each employee’s profile is assessed, and their permit is issued according to the appropriate category. Accurate classification is crucial because any mismatch between job title, qualifications, and salary can delay work permit issuance.

Two-Phase Rollout

The new classification system has been introduced in two phases:

• Phase 1: Reclassification of existing foreign workers already in Saudi Arabia began in mid-2025. Employers must review current employees’ records and ensure they are correctly classified.
• Phase 2: The system applies to new hires and requires accurate classification before work permits are issued.

This phased approach ensures that both existing staff and new employees are compliant under the updated rules.

Digital Management Through Qiwa

The classification system is fully integrated with the Qiwa platform, Saudi Arabia’s digital labour management system. This provides several advantages:

• Automatic classification based on employee data
• Real-time tracking of work permit status
• Ability to request corrections if the classification does not match qualifications or experience

Employers using an EOR can leverage this system to manage compliance efficiently and reduce administrative burdens.

Why This Matters for Employers Using an EOR

For companies working with an EOR like Tarmack, the new classification system affects hiring, compliance, and workforce planning:

• Correct Classification Is Mandatory: Employees must be classified accurately before work permits are issued to avoid delays.
• Job and Salary Alignment: Job descriptions, offers, and contracts must meet the criteria for the intended category.
• Professional Accreditation: High-skill roles may require validation of qualifications or certifications.
• Workforce Planning: Employers need to balance local and foreign hires while meeting operational needs and staying compliant.

An experienced EOR manages these requirements, helping employers navigate the system seamlessly and avoid administrative errors.

Impact on Recruitment and Operations

• Clarity for Candidates: Foreign employees understand how their skills and experience translate into work permit categories, setting clear expectations.
• Better Workforce Matching: Employers can assign roles more accurately, reducing mismatches and turnover.
• Compliance Confidence: Accurate classification ensures smoother work permit processing and reduces the risk of penalties or delays.
• Strategic Talent Planning: Employers can align hiring with the Kingdom’s goals to attract high-quality talent while building a sustainable workforce.

How Tarmack Supports Employers

Tarmack helps employers navigate Saudi Arabia’s evolving work permit system by:

• Advising on role classification and documentation
• Ensuring job descriptions, salaries, and qualifications align with the intended category
• Managing submissions and compliance through Qiwa
• Reducing administrative overhead so businesses can focus on growth

Working with Tarmack ensures that hiring foreign talent remains efficient, compliant, and strategic, even as Saudi Arabia updates its labour regulations.

Final Thoughts

The new work permit classification system is a significant change for employers hiring foreign skilled talent in Saudi Arabia. By planning ahead, classifying employees correctly, and working with an experienced EOR, companies can continue to hire efficiently while remaining fully compliant.

Partnering with a trusted Saudi Arabia Employer of Record like Tarmack ensures your foreign hires are classified correctly, fully compliant, and onboarded efficiently so you can focus on growing your team and business.