The "Developed Nitaqat" program is the primary mechanism through which the Ministry of Human Resources and Social Development manages workforce localization in the private sector. Every new establishment that hires — from its very first employee — enters this framework and is classified by its localization ratios. This page sets out the counting and classification basics as stated in the sources, in neutral compliance framing, as part of the business section on Hala Law, and pairs with the hiring your first employee page.
The April 2026 shift: only authenticated Qiwa contracts count
Per the sources, the program shifted fundamentally with the parameters implemented in April 2026: Saudization ratios are now calculated exclusively using employment contracts electronically authenticated on the Qiwa platform. A Saudi national working under an unverified paper contract does not contribute to the establishment's localization metrics. The practical effect is clear: authenticating contracts on the Qiwa platform is no longer a formality — it is the condition for a Saudi employee to appear in the establishment's metrics at all.
Wage floors: when does an employee count in full?
Counting no longer relies on raw headcount alone. Per the sources:
| Case | Floor as stated in the source | | --- | --- | | A Saudi national counting as one full employee | Monthly wage of at least SAR 4,000 | | Specific sectors, including marketing | Elevated wage floor of SAR 5,500 |
The floors above are per the June 2026 baseline; fees and thresholds change with subsequent decisions.
The tiers: Platinum to Red — and the removal of Yellow
Establishments are classified into tiers including Platinum, Green variations, and Red. Per the sources, the transitional Yellow tier was eliminated, so companies that previously hovered on the edge of compliance now fall directly into the Red tier. Red-tier consequences include the cessation of the establishment's ability to sponsor new expatriate visas or renew existing permits.
Professional quotas, not just an overall ratio
Relying on the overall ratio alone can mislead. Per the sources, the system applies profession-specific localization quotas — the example given in the source is a 40% localization rate for accounting roles within establishments of 5 or more workers. An establishment can hold an overall Green status and still face measures for missing a specific professional quota.
How the classification is tracked in practice
- Track the establishment's tier (Platinum, Green variations, Red) through the Qiwa dashboard.
- Confirm that all employment contracts are electronically authenticated on Qiwa.
- Meet Wage Protection System requirements through the Mudad platform, where payroll data is matched against WPS.
- Keep GOSI enrollment current, since the classification is calculated on a 26-week rolling average of GOSI and Qiwa data.
The steps above reflect the last verification as of June 2026; labels and names may change as the platforms are updated.
The data the calculation runs on
Per the sources, the calculation relies on verified payroll data mapping to the Wage Protection System, digital Qiwa contracts, and active GOSI enrollment logs. There is no explicit regulatory fee for the program itself; the true cost lies in designing compensation to meet the wage floors set out above. These obligations connect to the wider labor rights framework covering contracts and wages.
When do you need a licensed lawyer or advisor?
The information above is a general framework in neutral compliance terms, not an assessment of any specific establishment. The source classifies this file as one requiring an organizational design specialist, because compliance rests on detailed professional quotas that vary by activity. Engaging a licensed lawyer or accredited advisor becomes most relevant when:
- The establishment falls into the Red tier and suspension decisions follow, requiring an understanding of the grounds and the statutory remedies.
- A dispute arises over how a specific employee is counted or how a contract is authenticated on Qiwa.
- Localization questions intersect with ongoing labor disputes, where the position turns on facts and documents assessed case by case.