In a major shift from the decades-old, one-size-fits-all work visa system, Saudi Arabia has officially launched a new skill-based classification for work permits. Effective July 5th, 2025, this transformative policy divides all expatriate workers into three clear categories—High-Skill, Skilled, and Basic—based on multiple factors like qualifications, experience, salary, job role, and age. Here's a clear breakdown of how the system works, who it affects, and what you need to know if you're currently working in the Kingdom or planning to.
Saudi Arabia’s shift from Iqama to Skill-Based Work Permits
For years, all foreign workers in Saudi Arabia held the same type of residency and work permit (commonly known as the iqama), regardless of their job or experience level. From janitors to surgeons, everyone operated under a general system that didn’t reflect their actual skills or roles.
That’s now changed.
As of July 2025, the Saudi Ministry of Human Resources and Social Development (HRSD) has officially rolled out a new work permit classification system aimed at modernizing the Kingdom’s labor market. The system is closely aligned with Saudi Vision 2030 , which focuses on improving efficiency, attracting global talent, and better regulating and organizing the workforce.
The main purpose of this new system is to:
- Classify non-Saudi workers based on actual skills and job requirements
- Encourage the hiring of highly skilled workers
- Create a transparent, merit-based labor market
- Improve alignment between job roles and the Saudi Standard Classification of Occupations (SSCO)
The classification breaks foreign workers into three skill tiers:
- Educational Qualifications
- Professional Experience
- Skills/Professional Accreditation
- Monthly Wage
- Age
The rollout is happening in two stages:
- Phase 1: For existing workers
- Effective July 5, 2025
- Applies to current non-Saudi workers already in the Kingdom
- Classification is based on current wages and job roles
- Effective July 5, 2025
- Phase 2: For new entrants
- Effective August 3, 2025
- Applies to all new foreign workers entering the Kingdom
- Their classification will be evaluated under the new system before work permits are issued
- Effective August 3, 2025
Here’s a full breakdown of how workers are categorized, including the occupational groupings, expected qualifications, and salary ranges:
Category Occupational Groups (SSCO) Typical Roles Key Requirements
Each occupational group under the Saudi Standard Classification of Occupations (SSCO) maps to specific industries and job functions. The system provides a points-based evaluation that takes into account all five criteria to determine which category the worker belongs to.
What this means for workers and employers
This new system is mandatory for all new and renewed work permit applications. Employers must ensure that:
- Job offers align with the worker’s qualifications and category
- Salary and role meet the classification criteria
- Workers are accurately listed under the correct occupational group
- More clarity and transparency in job roles
- Better alignment between qualifications and job titles
- Opportunities for skill-based progression
- Attract and retain skilled talent
- Simplify HR compliance through digital tools
- Align recruitment with Vision 2030 objectives
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