Saudi Work Permit Classification for Foreign Workers explained: What expats and employers must know

In a major shift from the decades-old, one-size-fits-all work visa system, Saudi Arabia has launched a new skill-based classification for work permits. Effective July 5th 2025, this policy divides all expatriate workers into three clear categories—High-Skill, Skilled, and Basic, based on factors like qualifications, experience, salary, and age. Here's a clear breakdown of how the system works, who it affects, and what you need to know if you're 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 rolled out a new work permit classification system aimed at modernizing the labor market. The system is aligned with Saudi Vision 2030 , which focuses on improving efficiency, attracting talent, and better regulating 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)
  
  

How the 2025 Work Permit Classification works

The classification breaks foreign workers into three skill tiers:

High-Skill

Skilled

Basic

These categories are determined using five criteria:

• Educational Qualifications
  
• Professional Experience
  
• Skills/Professional Accreditation
  
• Monthly Wage
  
• Age
  
  

The evaluation is fully automated and managed via the Qiwa platform , a digital system under the Ministry of Human Resources. Employers can view and manage their workers’ classifications through their establishment's Qiwa account. If a worker’s skill level is wrongly classified, they can submit a correction request, provided they meet the required conditions for their desired category.

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
    
    
• 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
    
    

The classification based on Saudi Standard Classification of Occupations (SSCO)
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
  

For workers, this change brings:

• More clarity and transparency in job roles
• Better alignment between qualifications and job titles
  
• Opportunities for skill-based progression
  

For employers, it helps:

• Attract and retain skilled talent
  
• Simplify HR compliance through digital tools
  
• Align recruitment with Vision 2030 objectives
  
  

If a worker’s role or skill set doesn’t match the assigned classification, their permit status could be impacted—making accurate classification crucial.