As part of its ongoing labor market reforms, Saudi Arabia is introducing a significant change to how work permits are issued and renewed for expatriate workers.
Starting July 1, 2025 for new expats, and June 18, 2025 for existing ones, the Ministry of Human Resources and Social Development (HRSD) will implement a new skill-based classification system that categorizes foreign workers into three occupational tiers.
This reform is a foundational change that aligns with Vision 2030 and aims to elevate workforce standards, attract global talent, and increase transparency in Saudi Arabia business incorporation.
For foreign nationals and companies planning for business setup in Saudi Arabia, understanding these new rules is now essential, and this post offers you necessary insights on the same.
Saudi Arabia’s New Work Permit Rules – A Quick Overview
1. New Classification Categories for Work Permits
Under the revised framework, foreign workers in the Kingdom will be categorized into the following groups:
- High-Skill Workers
- Skilled Workers
- Basic Workers
Unlike the previous one-size-fits-all work permit model, the new system uses a data-driven, tiered approach that factors in a candidate’s educational background, work experience, professional accreditation, wage level, and age.
2. Why It Matters for Employers and Expats?
For companies with plans for company formation in the KSA, the implications of these changes are wide-reaching. Employers will need to align their hiring processes, job roles, and HR systems to the new occupational structure.
At the same time, foreign professionals must ensure their qualifications and professional certifications align with their registered job titles. This reform reflects a wider push toward regulatory compliance, improved labor quality, and economic diversification.
By creating a transparent framework based on merit and qualifications, the Kingdom is making itself more attractive to skilled foreign professionals and global businesses.
3. Checking Your Iqama Profession Code: 4 Methods
For expatriates, keeping your Iqama profession updated and accurate is critical. An outdated or incorrect job title can lead to compliance issues, especially during labor inspections. Here are four ways to verify your Iqama profession code.
Method #1: On the Physical Iqama Card
- Locate your card and check the “Mehna” field (usually on the 8th line)
- The listed profession is your official occupation
Note: If you’ve recently changed jobs or roles, your Iqama card might not show the update until reissuance.
Method #2: Ministry of Interior (MOI) Portal
- Visit the official MOI website
- Log in or create an account
- Go to your profile dashboard
- View your registered profession
Method #3: Absher Platform
- Log into your Absher account
- Navigate to “Dashboard” > “More Details”
- Your profession will be listed under “Job Category”
Absher is widely used and often reflects the latest data updates.
Method #4: Qiwa Platform
- Visit the Qiwa Individual portal
- Log in or create an account
- Under your profile, check your listed profession
Qiwa is also used by employers to ensure workforce data matches ministry records.
4. Understanding the Unified Iqama Profession Code System
Saudi Arabia uses a standardized occupation classification system to streamline how professions are listed and monitored. This system includes 10 major occupational groups and over 2,000 job titles.
Each group is assigned a numerical code and subunits, which helps align domestic labor categories with international standards. Being assigned to the correct occupational group directly impacts your work permit eligibility under the new system.
5. Operational Impact on Employers
If you are a business leader or HR executive managing business setup in Saudi Arabia, these changes mean more than just checking boxes. The new rules require:
- Reviewing your company’s current job roles and their corresponding Iqama classifications
- Ensuring staff qualifications align with assigned categories
- Budget planning, particularly for high-skill and skilled worker salary thresholds
- Revisiting your staffing strategy, especially if you operate in labor-heavy sectors like logistics, construction, or hospitality
Companies entering the Saudi market must now build regulatory compliance into their core hiring and operational strategies from day one.
What’s Next?
According to Saudi authorities, the system will continue to evolve based on feedback from businesses, professionals, and sector specialists. The government has already repealed earlier policies that contradict the new system and is expected to issue clarifying guidance for edge cases.
For foreign investors and companies, this presents both a challenge and an opportunity. Getting your workforce classification right, from the outset, is now critical for successful Saudi Arabia business incorporation and long-term operational success.
That’s why, employers, especially those involved in company formation in KSA, are advised to consult with experienced corporate service providers or legal advisors to navigate the nuances of the reform and ensure full alignment from the start.