In an unprecedented regulatory move, Saudi authorities have approved granting the Ministry of Human Resources and Social Development the authority to determine the financial fee for employing the dependents (male and female companions) of expatriate workers within private sector establishments. This is part of a government direction aimed at systematically integrating this category into the labor market as a legal alternative to recruitment from abroad.
The Decision and Regulatory Authorities
It was stated that the Council of Ministers approved a new regulation targeting the expansion of the participation scope of dependents (companions) in a number of economic activities and professions, in coordination with relevant government entities. The financial fee for their employment is being determined in cooperation between the Ministry of Human Resources and the Ministry of Finance, with the participation of the Non-Oil Revenue Development Center. The fee is to be equivalent to the levy imposed on expatriate labor in the private sector, achieving financial fairness and unifying the approved regulatory frameworks.
Controls for Employing Dependents (Companions)
The decision allows for the employment of dependents (companions) in professions and specializations that match their educational and practical qualifications, while adhering to the following controls:
Compliance with professional practice requirements and passing approved professional competency tests.
Restricting employment to the spouse or mahram (male guardian) for female workers.
Verifying the unavailability of Saudi cadres to fill the positions, according to the approved lists at the Ministry of Human Resources.
The employment must be a direct alternative to external recruitment, and the establishment’s activity must align with the controls of the “Nitaqat” program.
Implementation Date and Expected Impact
The decision has officially come into effect, amid expectations that it will contribute to:
Improving the living conditions of expatriate workers.
Providing regular job opportunities for their dependents (companions).
Supporting the efficiency and sustainability of the Saudi labor market, in line with economic development goals and the Kingdom’s Vision.
Council of Ministers
The Council of Ministers is the principal executive body of government in many countries, most notably historically in the Soviet Union and currently in nations like Russia and India. Its history is often tied to the Soviet model established after the 1917 Revolution, where it functioned as the main administrative and economic decision-making authority. Today, it typically consists of the heads of government departments and is responsible for implementing laws and managing state affairs under the leadership of a prime minister or similar official.
Ministry of Human Resources and Social Development
The Ministry of Human Resources and Social Development (MHRSD) is a key government body in Saudi Arabia, established in its current form in 2020 through the merger of the Ministry of Labor and Social Development and the Human Resources Development Fund. Its primary role is to regulate the labor market, develop the national workforce, and oversee social welfare and family protection programs, directly supporting the goals of Saudi Vision 2030 for economic diversification and social development.
Ministry of Finance
The Ministry of Finance is a key government department responsible for managing a nation’s economic policy, including taxation, budgeting, and public spending. Its history is tied to the development of the modern state, with many countries establishing formal ministries in the 18th and 19th centuries to centralize financial administration and fund state activities. For example, the UK’s Treasury dates to the 12th century, while the U.S. Department of the Treasury was founded in 1789.
Council of Ministers
The Council of Ministers is the principal executive body of government in many countries, most notably in Russia and Italy. Historically, the concept dates back to monarchical advisory councils but evolved into a cabinet-like institution responsible for implementing laws and managing state affairs. In the Russian Federation, for example, it was re-established after the Soviet era as the government’s main administrative organ.
Ministry of Human Resources and Social Development
The Ministry of Human Resources and Social Development is a government body in Saudi Arabia, established in its current form in 2020 through the merger of the Ministry of Labor and Social Development and the Human Resources Development Fund. It is responsible for labor market regulation, social welfare programs, and developing the national workforce in line with the country’s Vision 2030 economic diversification goals.
Ministry of Finance
The Ministry of Finance is a key government department responsible for managing a nation’s fiscal policy, including taxation, budgeting, and economic planning. Historically, such ministries evolved from ancient treasury offices, with modern forms often established alongside the development of the nation-state and its financial systems in the 18th and 19th centuries. As an administrative institution rather than a public cultural site, it typically operates from a government building, with its specific history and architectural significance varying by country.
Non-Oil Revenue Development Center
The Non-Oil Revenue Development Center is a modern institution in Saudi Arabia, established as part of the Vision 2030 economic reform plan to diversify the national economy away from its historical dependence on oil. Its primary purpose is to foster and support the growth of new sectors such as tourism, entertainment, technology, and small and medium-sized enterprises (SMEs).
Nitaqat program
The Nitaqat program is a labor policy introduced by Saudi Arabia in 2011 to increase the employment of Saudi nationals in the private sector. It classifies companies into quotas (or “zones”) based on their percentage of Saudi employees, with incentives for compliance and penalties for non-compliance. The program is a central part of the kingdom’s broader “Saudization” economic reforms aimed at reducing reliance on foreign labor.
Saudi Vision 2030
“Saudi Vision 2030” is not a physical place or cultural site, but rather a strategic national framework launched in 2016 to diversify Saudi Arabia’s economy and develop its public sectors. It aims to reduce the country’s dependence on oil by investing in new industries, promoting cultural and entertainment projects, and enhancing social life, with goals set for achievement by the year 2030.
