New rule on Nitaqat calculation for Saudi workers
The minister’s decision will boost Saudization further by ending the long wait of Saudis to be counted for Nitaqat
Minister of Labor Adel Fakeih announced that Saudi jobseekers hired by the private sector will be counted under the Nitaqat Saudization program immediately after their registration with the General Organization for Social Insurance (GOSI) effective from Sunday.
Until Saturday, a Saudi was counted for Nitaqat point in the employment registry of each firm only 13 weeks after their registration with GOSI.
The minister’s decision will boost Saudization further by ending the long wait of Saudis to be counted for Nitaqat. With the new directive, the GOSI registration will come into effect immediately after making payment of the insurance premium fixed for all types and categories of companies and establishments.
These firms also include smaller establishments with nine or less workers.
Investors in various sectors have called on the Ministry of Labor to start implementing a Nitaqat system for Saudis working in the private sector.
Accordingly, employment and the reason for leaving job of each Saudi can be tracked. And like all companies, Saudi employees will be categorized on different zones on their commitment and periods they stayed in each job.
The idea was first mooted by the Human Resources Development Fund (HRDF) but has not been implemented.
Bringing Saudi employees in the private sector under the ambit of the extended Nitaqat system is the only possible way to protect companies from the high rate of turnover in their businesses, Amal Shira, a member of the human resource committee of the Jeddah Chamber of Commerce and Industry (JCCI) said.
This article was first published in the Saudi Gazette on Feb. 22, 2015.
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