🇸🇦 Saudi Ministry of Human Resources (MHRSD)

Nitaqat Saudization Calculator & Simulator

Verify your exact MHRSD color zone, simulate upcoming expatriate and Saudi hiring plans, and calculate the exact workforce adjustments required to reach safe Green and Platinum tiers.

🇸🇦 Official Nitaqat Mutawar Guideline (v2.0)y = m · ln(x) + c

Nitaqat Mutawar Saudization Calculator & Simulator

Calculated using the official smooth logarithmic curve [y = m · ln(x) + c] from MHRSD Ministerial Decision No. 182495.

Formula Parameters:y = m · ln(400) + c
Low Green: m=1.68, c=17.08•Medium: m=1.87, c=23.87•High: m=2.08, c=25.47•Plat: m=2.08, c=32.87

Current Workforce Data (x)

All branches of same activity
1.0 pt

Registered in GOSI & documented on Qiwa.

Expats

Non-GCC expatriates working in the entity.

Total Labor (x)400ln(400) = 5.991
Physical Saudis140140.00 pts
Total Expats26065.0%
Nitaqat Mutawar TierLow Green
35.00%
Achieved Saudization Rate (n)
Range & Minimum ThresholdMin Required (y)
💎 Platinumn ≥ 45.33%
🟢 High Green37.93% ≤ n < 45.33%
🟢 Medium Green35.07% ≤ n < 37.93%
🟡 Low Green27.15% ≤ n < 35.07%
🔴 Red (Critical)n < 27.15%

WARNING: Allowed only to renew existing work permits. Cannot issue new visas.

MHRSD Status:Restricted Range (Blocked from New Visas)
Logarithmic Remediation Matrix

Exact Calculated Paths to Reach Your Target Tier

Select your target tier to calculate the exact workforce adjustments required according to the continuous logarithmic curve.

Target:
Path A (Hire Saudis)Recommended
+20Saudi National(s)

Hire exactly 20 full-time Saudi national(s) (earning ≥4,000 SAR) without modifying expat headcount.

✓ Maintains full operational workforce
Path B (Transfer Expats)
-30Expat Staff

Transfer sponsorships of 30 expatriate employees to decrease the denominator.

⚠️ Reduces overall operational capacity
Path C (Balanced Hybrid)
+10 Saudi&-15 Expat

Recruit 10 Saudi national(s) while transferring out 15 expat(s).

⚖️ Balances payroll and expat levy budget
What-If Recruitment Simulator

Simulate Your Next Recruitment Pipeline

Adjust sliders to see how planned hires shift your rate and dynamically recalculate your logarithmic curve.

+0
01530+50
+0
01530+50
Projected Simulated Result
35.00%
+0.00%vs. current
Simulated Tier:Low Green
⚠️ Notice: You will be in Low Green with blocked new visa quota.

Services of the Ministry of Human Resources by Range

Enabled operational services based on your range according to Section 5 of the MHRSD Guideline.

Services for Current Range

  • •Renew work permit of existing expatriate workers.
  • •Immediate counting in Nitaqat program.
  • •Cannot apply for new expatriate worker visas.
  • •Cannot change expatriate workers’ occupations.

Key Pillars of Decision No. 182495

  1. Consolidating Sectors: Consolidating activities into 37 standardized economic sectors.
  2. Predictable 3-Year Plan: Publishing upfront values to provide long-term regulatory stability.
  3. Removing Fixed Size Bands: Replacing abrupt size cliffs with a smooth logarithmic curve.
MHRSD Website

The Nitaqat Mutawar Program (Version 2.0) & The Logarithmic Equation

Under Ministerial Decision No. 182495 and the official Procedural Guideline for the Nitaqat Mutawar Program (Version 2.0), the Saudi Ministry of Human Resources and Social Development (MHRSD) introduced three structural pillars:

  1. Consolidating Economic Activities: Rationalizing business activities into 37 standardized economic activities with fixed mathematical parameters in Annex No. (1).
  2. Predictable Multi-Year Quota Stability: Publishing fixed curve coefficients ($m$ and $c$) upfront so enterprises can plan recruitment budgets without unexpected regulatory shifts.
  3. Eliminating Fixed Size Bands: Replacing the old, abrupt tiered bands (which heavily penalized companies growing from 499 to 500 workers) with a continuous, smooth mathematical curve.

The Minimum Saudization Rate Equation

For any entity with a total workforce of $x$ workers, the minimum required Saudization percentage ($y$) for each compliance range (Low Green, Medium Green, High Green, and Platinum) is calculated using the natural logarithmic formula:

y = m · ln(x) + c

Where y is the minimum required rate (%), m is the curve gradient, c is the y-intercept for the year, and ln(x) is the natural logarithm of total workforce x.

Official Benchmark Example: Abdullah for Plastics Company

Consider a real-world scenario directly from the MHRSD Version 2.0 Guideline: Abdullah for Plastics Company operates in the Manufacturing sector with 400 total employees and an achieved Saudization rate of 35.00%:

  • Total Workforce: $x = 400 \implies \ln(400) \approx 5.9915$
  • Low Green Threshold (2024): $1.68 \cdot \ln(400) + 17.08 = 27.15\%$
  • Medium Green Threshold (2024): $1.87 \cdot \ln(400) + 23.87 = 35.07\%$
  • High Green Threshold (2024): $2.08 \cdot \ln(400) + 25.47 = 37.93\%$
  • Platinum Threshold (2024): $2.08 \cdot \ln(400) + 32.87 = 45.33\%$

With a Saudization rate of 35.00%, the company falls into the Low Green range ($27.15\% \le 35.00\% < 35.07\%$). To reach Medium Green, it must raise its rate by just $0.08\%$—a critical insight our instant remediation matrix calculates to the exact employee.

How Saudi Employees Are Weighted in the Numerator

MHRSD rules specify that local employees contribute to your weighted headcount ($W$) based on their wage and special classifications:

  • Full-Time Saudi (Salary ≥ SAR 4,000): Counts as 1.0 point in the numerator.
  • Full-Time Saudi (Salary SAR 3,000 – 3,999): Counts partially as 0.5 point.
  • Full-Time Saudi (Salary < SAR 3,000): Completely excluded (0.0 points) from the numerator, though still counted in the total workforce denominator.
  • Part-Time Employees: Count as 0.5 point (subject to pro-ration and statutory caps).
  • Employees with Special Needs / Disabilities: Count as 4.0 points in your weighted headcount.
  • Rehabilitated Citizens (Released Prisoners): Count as 2.0 points for their first 24 months of registered employment.

The Micro-Enterprise Rule (1 to 5 Total Staff)

Micro-businesses represent a substantial segment of the Saudi economy. The MHRSD enforces a simplified two-tier rule for entities with 5 or fewer total staff:

  • If the entity employs foreign expatriates, it must employ and register at least one Saudi national to remain in the Green Zone.
  • If the micro-entity has zero Saudi nationals and at least one expatriate employee, it is automatically demoted to the Red Zone.
  • If 100% of the workforce consists of Saudi citizens, the entity enters the Platinum Zone.

Abolition of the Yellow Zone

Under updated MHRSD resolutions, the historical Yellow Zone was entirely discontinued. Establishments that fall below the Low Green threshold are no longer granted transitional yellow privileges; they are demoted immediately to the Red Zone, initiating immediate work permit freezes.

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Tracking fractional Saudization points and preparing for periodic quota adjustments across multiple branches is prone to error when managed through manual spreadsheets. Qeemah Cloud delivers an integrated accounting, payroll, and HR suite tailored for Saudi enterprises:

  • Instant synchronization of GOSI deductions and monthly contributory wages.
  • Automated WPS payroll file generation compliant with Saudi bank formats.
  • Real-time ZATCA Phase 2 e-invoicing integrated directly into the general ledger.
  • Continuous headcount and labor cost forecasting to keep your business securely in the Green and Platinum tiers.
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Frequently Asked Questions

How is the Nitaqat Saudization percentage officially calculated in Saudi Arabia?

The Saudization percentage is calculated by dividing your Weighted Saudi Headcount by your Total Physical Workforce (Saudi nationals + Expatriates) multiplied by 100. Employees are weighted according to their wage and registration category: full-time Saudis earning SAR 4,000 or more count as 1.0 point, those earning between SAR 3,000 and SAR 3,999 count as 0.5 point, registered employees with disabilities count as 4.0 points, and students or part-timers count as 0.5 point.

Do all Saudi employees count toward my Nitaqat score?

No. To count toward your Saudization points, a Saudi employee must earn at least SAR 3,000 per month (full-time Saudis earning below SAR 3,000 receive 0 points). Additionally, under current MHRSD regulations, only contracts electronically documented on the Qiwa platform are included in your compliance calculation. Undocumented contracts are strictly excluded.

What is the special Nitaqat rule for micro-enterprises with 1 to 5 employees?

For micro-entities employing 5 or fewer total staff, the color zones are simplified into Green and Red. If the entity employs any foreign workers, it must hire and retain at least one registered Saudi national (such as a full-time employee or the business owner registered in GOSI) to remain in the compliant Green zone. Micro-entities with zero Saudis and at least one expat fall into Red immediately.

What happened to the Yellow Zone in Nitaqat?

The Ministry of Human Resources and Social Development (MHRSD) completely abolished the Yellow zone. All non-compliant establishments previously classified under Yellow were demoted directly to the Red Zone, facing full operational freezes on visa issuance and work permit renewals.

How does having an employee with special needs affect Saudization?

Under MHRSD regulations, a Saudi national with a registered disability / special needs counts as 4.0 points in your weighted Saudization headcount (subject to regulatory limits based on entity size). This provides strategic compliance leverage for companies aiming to reach High Green or Platinum while fostering inclusive employment.

What are the consequences of falling into the Red Zone on Qiwa?

Falling into the Red zone triggers severe operational penalties: (1) Total freeze on issuing new foreign work visas, (2) Complete block on renewing existing expat work permits (Iqama), (3) Inability to transfer foreign sponsorships into the company, and (4) Crucially, your registered expatriate employees gain the legal right to transfer their sponsorship to compliant entities without your consent or release.