Understanding the Nitaqat Calculator and Its Business Impact
Understanding the Nitaqat Calculator and Its Business Impact
Suppose your business aims to improve its GOSI Certificate status or obtain one for the first time. In that case, you may be aware of the Nitaqat or Saudisation programme and the Nitaqat Calculator. The Nitaqat Calculator assesses a company’s compliance with the Nitaqat programme. A higher classification provides access to more administrative benefits. For expatriates, this can mean smoother work visa renewals, provided the company maintains the required classification. For employers, maintaining a higher Nitaqat classification can reduce the risk of restrictions when hiring non-Saudi workers.
This article outlines how the Nitaqat Calculator works, what its outputs mean, and how they may affect your business’s compliance strategy. Cercli achieves global HR system compliance by simplifying the Nitaqat calculation and streamlining HR processes in line with local hiring requirements.
What is the Nitaqat Programme?
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The Nitaqat Programme is a nationalisation scheme for the workforce introduced by the Ministry of Human Resources and Social Development in Saudi Arabia. It was established by Ministerial Decree No. 4040, dated 12 October 2011 (12/10/1432 H), and took effect from the same date.
Its main aim is to increase the employment of Saudi nationals in the private sector by requiring companies to meet Saudisation targets based on their size and sector.
What Are the Different Nitaqat Categories?
Under Nitaqat, businesses are classified into six categories:
- Red
- Yellow
- Low Green
- Medium Green
- High Green
- Platinum
These categories reflect the proportion of Saudi nationals employed and determine the level of government services available to the business.
Understanding Nitaqat Compliance Bands And Their Impact On Business Operations
Platinum
Platinum businesses comply most strongly with Saudisation targets, often employing 40% or more Saudi nationals. These companies receive priority access to administrative services, such as faster visa processing and early renewal of employee residence permits (Iqamahs).
Green
Green-category businesses, ranging from Low to High Green, represent the majority of the private sector. They employ between 9% and 38% Saudi nationals and receive some administrative benefits, though fewer than those available to Platinum businesses.
Red
Red is the lowest category, applying to businesses that employ fewer than 4% Saudi nationals. These companies have limited access to Ministry services and are expected to promptly improve their Saudisation levels.
What’s New with the Developed Nitaqat Programme?
In 2021, the Ministry introduced the Developed Nitaqat Programme through Decree No. 182495, dated 23 May 2021 (11/10/1442 H). The update introduced changes aimed at strengthening job localisation, aligning with Saudi Arabia’s national employment objectives.
The Developed Programme includes the following key changes:
- A fixed three-year localisation plan, giving employers a defined timeline to meet their Saudisation targets.
- A clearer link between workforce size and required localisation levels, making the scheme more suitable for businesses of different sizes.
- Merging smaller business activities with broader sectors to standardise requirements across industries.
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What is the Nitaqat Calculator?
The Nitaqat Calculator is an online tool that enables businesses in Saudi Arabia to determine their Saudisation rate and Nitaqat classification. It is part of the national regulatory framework for workforce localisation, overseen by the Ministry of Human Resources and Social Development.
How the Nitaqat Calculator Works
The calculator lets companies enter details such as:
- The number of Saudi and non-Saudi employees
- Their salaries
- The overall company size
Once submitted, the tool calculates the organisation’s current Saudisation rate and its category under the Nitaqat system (from Red to Platinum).
This helps businesses understand their position and whether any changes are needed to meet compliance and benefit from higher-category incentives.
Where to Access the Nitaqat Calculator
Companies can access the Nitaqat Calculator through official government platforms such as the Qiwa portal, which brings together labour and employment services managed by the Ministry. Some third-party HR systems aligned with Saudi labour rules also include built-in calculators for internal planning and compliance purposes.
Supporting HR Operations Across The UAE And Wider MENA Region
Cercli supports HR operations in line with the UAE’s commitment to efficient, business-friendly practices. Cercli provides a platform tailored for MENA businesses, unifying workforce management needs in a single system. Manage your team, whether local or international, with the ability to process payments in more than 150 countries. The platform supports multi-currency payroll, leave tracking, employee onboarding, and local compliance requirements, all tailored to the specific requirements of the MENA region.
Whether you're managing a growing team of 25 or coordinating 500+ employees across multiple countries, Cercli provides the localised expertise and streamlined processes MENA businesses require to support growth and manage remote teams effectively. Explore an HR platform aligned with how businesses operate across the Middle East. Arrange a demonstration today to discuss our international HR system with our team.
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Understanding the Calculator’s Output and Its Implications
The Nitaqat Calculator calculates a Saudisation percentage, indicating the proportion of Saudi nationals employed in the company’s total workforce. This figure is assessed based on the company’s sector and size, using criteria established by the Ministry of Human Resources and Social Development.
Each sector and company size has a specific quota, and the calculator shows whether the business meets or falls below that target. The result places the company into one of six Nitaqat categories:
- Red
- Yellow
- Low Green
- Mid Green
- High Green
- Platinum
What Each Nitaqat Category Means for Your Business
A company’s Nitaqat classification has direct implications: Platinum and High Green companies meet or exceed Saudisation targets. These companies receive faster access to Ministry services, including:
- Visa processing
- Expatriate employee transfers
- Permit renewals
Mid- and Low-Green companies also receive Ministry support, but to a lesser extent than those in higher categories.
Why Nitaqat Classification Matters For Business Continuity And Reputation
Yellow and Red categories indicate low Saudisation levels. Companies in these bands may be unable to renew work permits or apply for new visas. This can disrupt daily operations and longer-term planning.
A higher classification can improve the company’s reputation with government bodies and private sector partners. It shows the company’s commitment to national employment targets and compliance with Saudi labour regulations.
Using the Results for Workforce Planning
The results from the Nitaqat Calculator reflect current performance and can support future workforce planning. By observing the number of Saudi employees required for the following classification, companies can adjust their hiring and HR practices accordingly. Employers should check their results regularly to stay on track and avoid slipping into lower Nitaqat categories.
This may include hiring more skilled Saudi professionals, improving training programs, or adjusting staff roles to meet Saudisation quotas better. Maintaining a higher classification enables businesses to access government services, avoid penalties, and contribute to national efforts to boost local employment.
Local Expertise, Global Reach: HR Support Designed For MENA Businesses
Cercli supports HR operations in line with the UAE’s commitment to efficient, business-friendly practices. Cercli provides a platform tailored for MENA businesses, unifying workforce management needs in a single system. Manage your team, whether local or international, with the ability to process payments in more than 150 countries. The platform supports multi-currency payroll, leave tracking, employee onboarding, and local compliance requirements, all tailored to the specific requirements of the MENA region.
Whether you're managing a growing team of 25 or coordinating 500+ employees across multiple countries, Cercli provides the localised expertise and streamlined processes MENA businesses require to support growth and manage remote teams effectively. Explore an HR platform aligned with how businesses operate across the Middle East. Arrange a demonstration today to discuss our international HR system with our team.
Strategies to Improve Your Nitaqat Score
Prioritise the Employment of Saudi Nationals
Hiring more Saudi employees is the most direct way to improve your Nitaqat classification. This is particularly relevant for roles identified as priority occupations or in sectors linked to national development goals. Hiring in these areas supports Saudisation compliance and shows a commitment to long-term workforce localisation.
Ensure Saudi Salaries Meet Required Thresholds
Under current regulations, only Saudi employees earning above a set monthly threshold are included in a company’s Saudisation percentage. Reviewing and adjusting salaries where needed helps ensure eligible employees are included in the Nitaqat calculation, supporting a stronger classification.
Make Use of Exemptions and Special Categories
Some exemptions may help businesses meet their Saudisation targets more easily. For example, an employee with a registered disability may count as more than one Saudi national if specific employment conditions are met.
Part-time workers and students in cooperative training programs (COOP) may be included in the Saudization percentage, subject to certain limits.
Balancing Saudi and Expatriate Talent
Employing both Saudi and expatriate staff can help businesses meet operational needs while supporting localisation targets. Planning job roles carefully allows employers to increase Saudi representation over time without affecting day-to-day operations.
Monitor Saudisation Compliance with the Nitaqat Calculator
Using the Nitaqat calculator regularly helps companies track their compliance and respond to changes in their Saudisation status. This helps prevent a drop in classification, which could limit access to Ministry services such as visa renewals and work permit transfers. Monitoring changes in real time supports better planning across HR and workforce management.
Book A Demonstration To Speak With Our Team About Our Global HR System
Cercli supports HR operations in line with the UAE’s commitment to efficient, business-friendly practices. Cercli provides a platform tailored for MENA businesses, unifying workforce management needs in a single system. Manage your team, whether local or international, with the ability to process payments in more than 150 countries. The platform supports multi-currency payroll, leave tracking, employee onboarding, and local compliance requirements, all tailored to the specific requirements of the MENA region.
Whether you're managing a growing team of 25 or coordinating 500+ employees across multiple countries, Cercli provides the localised expertise and streamlined processes MENA businesses require to support growth and manage remote teams effectively. Explore an HR platform aligned with how businesses operate across the Middle East. Arrange a demonstration today to discuss our global HR system with our team.
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