Saudi Arabia’s Council of Ministers has approved a new regulation granting the Ministry of Human Resources and Social Development (MHRSD) the authority to determine financial compensation for employing the dependents of foreign workers within the private sector, according to a report in the Saudi newspaper Okaz.
The decision, described as an unprecedented organizational step, aims to integrate this demographic more systematically into the Saudi labor market, offering a legal alternative to recruiting workers from abroad. The move is aligned with broader government efforts to diversify the economy and increase the participation of all residents in the workforce.
The financial compensation will be determined in collaboration between the MHRSD and the Ministry of Finance, with input from the Non-Oil Revenue Development Center. The fee will be equivalent to the levy currently imposed on foreign workers in the private sector, a measure intended to ensure financial fairness and standardize regulatory frameworks, Okaz reported.
The regulation permits dependents to work in professions and specializations that align with their academic and professional qualifications, subject to specific conditions. These include fulfilling the requirements for practicing the profession and passing approved professional competency tests. Employment of spouses or a male guardian is limited to female workers. Employers must similarly verify that qualified Saudi nationals are not available to fill the positions, according to lists maintained by the MHRSD.
The new rules stipulate that employing dependents must be a direct substitute for recruiting foreign workers and that the employer’s activities must comply with the requirements of the “Nitaqat” program, a Saudization initiative designed to increase employment opportunities for Saudi citizens.
The decision has officially come into effect, with expectations that it will improve the living conditions of foreign workers, provide legal employment opportunities for their dependents, and support the efficiency and sustainability of the Saudi labor market, in line with the Kingdom’s economic development goals and Vision 2030.
The MHRSD is the government agency responsible for setting public policy for labor regulations in both the public and private sectors, according to its official website (https://www.hrsd.gov.sa/). The agency also oversees social affairs and development programs. The website of the national platform (https://www.my.gov.sa/ar/agencies/17900) confirms this role.
Further details regarding the implementation of the financial compensation mechanism and the specific procedures for employers are expected to be announced by the MHRSD in the coming weeks. The agency’s online services portal (https://eservices.taqat.sa/) provides access to services for individuals, the private sector, and government entities.
The Human Resources Development Fund (HRDF), known as “هدف”, offers employment support programs for establishments, including financial assistance to cover a portion of the wages of newly hired Saudi nationals (https://www.hrdf.org.sa/products-and-services/programs/establishments/enable/employment-support/). It remains unclear whether similar support will be extended to employers hiring the dependents of foreign workers under the new regulations.