New Private-Sector Labor Compliance Rules Announced

The Ministry of Human Resources and Social Development has issued updated labor compliance measures for all private-sector establishments, tightening requirements on digital employment contracts and raising Saudization quotas across a range of professions, with deadlines extending through 2026.

Under the new rules, all private-sector employment contracts must be digitally documented and authenticated through the قوى platform. Contracts that are not electronic or remain unsigned are treated as legally invalid. Mandatory contract documentation compliance rises to 85% of all employees from 30 April 2026, and to 90% from 30 June 2026. From 15 April 2026, any Saudi employee without a countersigned قوى contract will be excluded from Nitaqat Saudization headcount. قوى is integrated with GOSI for Saudi nationals, so full compliance requires both GOSI registration and a valid قوى contract.

Saudization and Nitaqat changes

A new three-year Nitaqat cycle is now in force, with raised sector quotas and the removal of the Yellow tier. Non-compliance can lead to fines of up to 500,000 ريال سعودي, freezes on visa issuance, and, in severe cases, suspension of the commercial license.

For marketing and sales professions in establishments with three or more workers in covered roles, a minimum Saudization rate of 60% applies from 19 January 2026, with a three-month grace period; Saudi employees must earn at least 5,500 ريال سعودي Several administrative support roles — including secretary, data entry clerk, patient receptionist, security guard, HR clerk, and translator — become 100% Saudi-only from 5 April 2026 with no grace period, while a second group of administrative roles becomes fully restricted after a grace period ending 4 October 2026.

Other sectors are also affected: dental professions require 55% Saudization from 27 January 2026, and procurement professions require 70% from November 2025. Employers are advised to review their records and update contracts early to avoid penalties.

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