Recently Ministry of Labour, Govt. of Saudi Arab has introduced a new law named 'Nitaqat System' for promoting employment of local people in private firms. This system would replace old 'Saudization' program. As per an estimate about 2.5 million Indian are employed in the Kingdom of Saudi Arab (KSA). Saudi govenment has given three months time for correction of Visa status and other documents. It is expected that only those expatriates shall be affected by this program whose documents are not proper. Indian Embassy of Saudi Arab has provided an e-mail address labour.riyadh@mea.gov.in for providing assistance to Indian nationals who are affected by the Nitqat program. All the Non Resident Biharis (NRB) working in KSA can contact officials of Indian Embassy or visit its website http://www.indianembassy.org.sa/ for updated information and assistance if they are affected by this Nitqat Program.
Source : Saudi Gazette
NITQAT PROGRAM IN A NUTSHELL
NITAQAT (ZONES) SYSTEM
In a Nutshell
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5 Company Classifications (based on total employee tally)
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1-10 employees | EXEMPT from classifications | Nitaqat system does not apply | ||||
10-49 employees | SMALL classification | 5-24% Nationalization required | ||||
50-499 employees | MEDIUM | 6-27% Nationalization required | ||||
500-2999 employees | LARGE | 7-30% Nationalization required | ||||
3000-more employees | BIG | 8-30% Nationalization required | ||||
4 Compliance-Related and Disciplinary Zones
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Blue zone
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GREEN zone
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YELLOW zone
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RED zone
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VIP category
INCENTIVES:
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Excellent category
INCENTIVES:
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Poor compliance
Punitive Measures:
Grace Period: 9 months to improve their status. |
Non-compliance
Punitive Measures: Banned from change of profession, transfer of visas, issuance of new visas and opening files for new branches. Grace Period: 6 months to improve their status. | |||
Under the new policy, foreign workers employed by companies that are not in compliance are free to work for companies in compliance without acquiring permission from their employers at non-complying companies. | ||||||
Source : Saudi Gazette