Saudization: Ministry unveils new nationalization quota calculation

Published June 26th, 2016 - 10:30 GMT
Female employment rates are calculated by dividing the number of Saudi women registered in social security by the establishment’s total employment numbers. (File photo)
Female employment rates are calculated by dividing the number of Saudi women registered in social security by the establishment’s total employment numbers. (File photo)

A few days after the Ministry of Labor and Social Development in Saudi Arabia approved the new ‘stabilized Nitaqat Program,’ sources close to the ministry have revealed new ways of calculating nationalization points in five different ways. 

New information showed that the nationalization of jobs for Saudi women can be achieved by awarding two points for each one percent of Saudi women who are registered in the total employment of the establishment, to a maximum of 200 points, assuming that nationalization rates are at 100 percent.
 
Female employment rates are calculated by dividing the number of Saudi women registered in social security by the establishment’s total employment numbers.

The establishment zone is classified according to the total points achieved based on five factors, including female nationalization in the establishment and the nationalization factor. These are calculated by giving 10 points for each one percent of nationalization rates to a maximum of 1,000 points, and on the assumption that nationalization rates reach 100 percent.

Another factor is the average number of Saudi workers in the establishment. Six points are awarded for each SR1,000, and are calculated to a maximum of 270 points, with average wages of SR45,000.

The fourth factor is calculated according to total points, which relates to job sustainability for Saudi workers. The process is done according to an equation by the Ministry of Labor, which equals the addition of five points, multiplied by the average sustainability of Saudi workers in the establishment to a maximum of 100 points and on the assumption that the job is sustainable for at least 25 years.

The sustainability average is calculated according to the highest number of years of service by Saudi workers, and is registered in the social security corporation. This is divided by the total number Saudi workers to determine the total value of points applicable.

The fifth factor relates to high wages and is worked out by calculating the percentage of Saudis who receive high salaries, multiplied by 0.1 percent to a maximum of 10 points, and is based on the assumption that all those who receive high wages are Saudis.

The sum of people with high wages is 25 percent of the total number of workers who receive the highest monthly salaries in the establishment. The number of Saudis who receive high wages is determined by calculating the total number of Saudis with high wages, divided by the total number of people with high wages, multiplied by 100.

The stabilized Nitaqat program was launched recently. An improvement of Nitaqat program, it encourages establishments to nationalize jobs. Conforming to the Saudi vision 2030, it aims to introduce a number of reforms in the coming period.

The program is the first step in the national transformation program 2020 and is to develop performance of the market and raise the quality of employment.

This is in addition to generating suitable job opportunities, setting up a safe and attractive work environment and eliminating unproductive nationalization, reported Alsharq Alawsat.


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