Saudi Arabia has taken a historic step in reshaping its labor market. Starting July 2025, the Kingdom has officially moved away from its decades-old one-size-fits-all work visa model to a skill-based work permit classification system. This reform divides all foreign workers into three clear categories—High-Skill, Skilled, and Basic—based on education, professional experience, salary, and other factors.
For millions of expatriates and thousands of employers in Saudi Arabia, this change is more than just a paperwork update. It’s a complete overhaul of how jobs, salaries, and qualifications are valued in the Kingdom. Whether you’re already working in Saudi Arabia, planning to move soon, or an employer managing a diverse workforce, this guide will help you understand exactly what’s changing and how to prepare.
Why Saudi Arabia Is Changing Its Work Permit System
For years, all foreign workers in Saudi Arabia were issued the same type of residency and work permit, known as the Iqama. It didn’t matter if you were a janitor, a driver, a nurse, or a brain surgeon—everyone fell under the same umbrella.
This “flat” system had several limitations:
- No skill recognition: Workers with high-level expertise were not officially differentiated from entry-level employees.
- Labor market mismatch: Many job titles didn’t reflect actual qualifications.
- Limited transparency: Employers and employees often lacked clarity on wage expectations and career progression.
With the launch of the new system, Saudi Arabia is aligning its labor policies with Vision 2030, the Kingdom’s national transformation plan. The goals are clear:
- Attract and retain global talent.
- Improve efficiency in the labor market.
- Encourage a merit-based, transparent workforce.
- Support economic diversification beyond oil.
From Iqama to Skill-Based Permits: What’s New
Under the new policy, the Saudi Ministry of Human Resources and Social Development (HRSD) has introduced a three-tier classification system for all expatriate workers.
Instead of every worker being treated the same, the new model creates distinct categories:
- High-Skill
- Skilled
- Basic
Classification is determined using five main factors:
- Educational qualifications
- Professional experience
- Skills or professional accreditation
- Monthly wage
- Age
Evaluations are conducted digitally through the Qiwa platform, which employers and employees can access.
This new system ensures that a worker’s permit and legal status match their actual role and capabilities.
How the Classification Works
Let’s break down each category.
1. High-Skill Category
Occupational Groups (SSCO): Groups 1–3
- Doctors, surgeons, engineers, IT specialists, university professors, corporate executives
Key Requirements:
- Bachelor’s degree or higher in a relevant field
- More than 5 years of professional experience
- Monthly salary above SAR 15,000 (≈ US$4,000)
- More than 70 points under the HRSD evaluation system
- Relevant professional accreditation
Example:
A civil engineer with 7 years of experience, a master’s degree, and a monthly salary of SAR 18,000 would fall under the High-Skill category.
2. Skilled Category
Occupational Groups (SSCO): Groups 4–8
- Technicians, mid-level supervisors, electricians, welders, craftsmen
Key Requirements:
- Secondary school or vocational certification
- At least 2 years of professional experience
- Monthly salary between SAR 7,000 – 14,999 (≈ US$1,865 – 3,997)
- Professional accreditation
Example:
An HVAC technician earning SAR 9,500 per month with 3 years of work experience and a trade license would be classified as Skilled.
3. Basic Category
Occupational Groups (SSCO): Group 9
- Entry-level jobs, general laborers, manual workers, drivers
Key Requirements:
- No formal education required
- Age limit: below 60 years
- Monthly salary between SAR 3,000 – 6,999 (≈ US$800 – 1,865)
- Accreditation if required for the specific trade
Example:
A warehouse worker earning SAR 3,500 with no formal degree but under 60 years of age would fall under the Basic category.
Rollout Timeline
The new system is being introduced in two phases:
Phase 1 – For Existing Workers
- Effective July 5, 2025
- Applies to current expatriates already living in Saudi Arabia
- Workers will be automatically reclassified based on wages, job titles, and qualifications
Phase 2 – For New Entrants
- Effective August 3, 2025
- Applies to all new workers entering Saudi Arabia
- Their classification will be decided before the work permit is issued
The Saudi Standard Classification of Occupations (SSCO)
A key part of the reform is the SSCO, which organizes all jobs into occupational groups. This ensures that:
- Workers are hired for roles that match their training.
- Salaries reflect the job group and required qualifications.
- Employers cannot misclassify employees for cheaper permits.
For instance, a registered nurse must fall under a High-Skill or Skilled category, depending on qualifications, and cannot be misclassified as “Basic” just to save on wages or permit costs.
How the Qiwa Platform Works
The Qiwa platform is the central tool for implementing this policy. Through Qiwa, employers can:
- Check each worker’s classification.
- Submit correction requests if misclassified.
- Ensure compliance before applying for new permits.
Workers also have access to their classification and can raise disputes if they believe their category is inaccurate.
What This Means for Expat Workers
For expatriates, this new system brings both opportunities and responsibilities:
Benefits:
- Clarity: You know exactly where you stand in the labor market.
- Recognition: Your skills and qualifications are formally acknowledged.
- Progression: With higher qualifications or salary increases, you can move to a higher category.
Challenges:
- Documentation: Workers must provide proof of degrees, certifications, and experience.
- Language & Accreditation: Some roles may require Saudi-recognized licenses or exams.
- Competition: As the system favors highly skilled workers, low-skilled workers may face stricter requirements.
What This Means for Employers
For businesses, compliance is critical:
- Job offers must align with the worker’s classification.
- Salaries must meet minimum thresholds.
- Workers must be placed in the correct occupational group.
Benefits for Employers:
- Easier recruitment of high-skilled talent.
- Streamlined HR compliance with digital tools.
- Better alignment with Vision 2030 workforce goals.
Risks if Not Followed:
- Incorrect classification could impact the worker’s permit validity.
- Employers may face fines or restrictions on hiring new expats.
Practical Scenarios
Let’s look at some real-world examples to illustrate how this works.
Scenario 1:
Ravi, an Indian IT professional, earns SAR 12,000 with 4 years of experience and a bachelor’s degree. He falls under Skilled, not High-Skill, because his salary and experience don’t meet the High-Skill threshold yet.
Scenario 2:
Maria, a Filipino nurse with 8 years of experience and a salary of SAR 16,000, qualifies as High-Skill due to her degree, experience, and wage.
Scenario 3:
Ahmed, a Pakistani construction worker earning SAR 4,500, is classified as Basic. He cannot apply for roles requiring higher skill categories unless he upgrades his education and salary level.
Frequently Asked Questions (FAQs)
1. Will existing Iqamas be invalid?
No, but they will be transitioned to the new system starting July 2025.
2. Can I move from Basic to Skilled?
Yes, if you gain the required certification, experience, and salary level.
3. What if my employer misclassifies me?
You can submit a correction request through the Qiwa platform.
4. Is there an age limit for High-Skill workers?
No strict upper limit, but generally workers above 60 are not issued new permits.
5. Will salaries increase because of this system?
In many industries, yes. Employers must meet minimum salary thresholds to classify workers in higher categories.
Why This Matters for Vision 2030
Saudi Arabia’s Vision 2030 aims to transform the Kingdom into a diversified, knowledge-driven economy. The new work permit classification directly supports this vision by:
- Attracting high-skilled global talent.
- Reducing dependency on low-wage labor.
- Building a transparent and merit-based job market.
- Enhancing productivity across industries.
This shift signals that Saudi Arabia is no longer just looking for labor—it’s looking for talent.
Final Thoughts
Saudi Arabia’s new 2025 skill-based work permit classification marks a turning point in the Kingdom’s labor market. For expatriates, it creates clearer career pathways, but also higher expectations for qualifications and documentation. For employers, it demands strict compliance but also opens the door to attract top global talent.
If you’re an expat already in Saudi Arabia, make sure your documents are updated and your salary aligns with your job classification. If you’re planning to move, research your role under the SSCO and understand where you fit. For employers, the key to smooth operations will be using the Qiwa platform effectively and ensuring job offers match the required classification.
In the bigger picture, this reform isn’t just about paperwork. It’s about shaping the future of Saudi Arabia’s workforce—where skill, merit, and contribution are valued above all else.
