11,000 Saudi firms closed due to Nitaqat: MIT study

Nitaqat has specified SR3,000 ($800) as the minimum salary for a male or female Saudi employee, according to the Saudization percentage. (File Photo: Reuters)

Some 11,000 Saudi firms have closed down due to the implementation of the Nitaqat program to support Saudization, according to a study conducted by Massachusetts Institute of Technology (MIT) which is participating in training Saudi workers online in coordination with the Labor Ministry.

The closures, according to the study, took place in the 16 months since the beginning of the Nitaqat program in 2011. It said 96,000 Saudis were employed in the private sector during that period.

Meanwhile, Tayseer Al-Mufarrij, the director of the Labor Ministry’s Information Center, said employers cannot reduce a worker’s salary during his or her training period.

Nitaqat has specified SR3,000 ($800) as the minimum salary for a male or female Saudi employee, according to the Saudization percentage. A Saudi employee whose salary is less than SR3,000 is not counted as one Saudi as regard the Saudization percentage in the firm.

Several Saudi women in a number of firms in Jubail have lodged complaints against their employers for salary cuts during training.

This article was first published in the Saudi Gazette on Monday, Sept. 22, 2014.
 

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Last Update: Wednesday, 20 May 2020 KSA 09:43 - GMT 06:43
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