Table of Contents
- Saudi Nitaqat for small businesses: the rules in one table
- What changed for companies with under 6 employees
- Does the Saudi hire have to be full time?
- Does the owner count as the Saudi worker?
- What happens if a small business has no Saudi employee?
- The expatriate levy exemption ends on 21 January 2027
- What the Saudi hire costs in payroll
- How to add a Saudi employee so they count in Nitaqat
- Mistakes small businesses make with Nitaqat
- Get your Saudi hire set up so it counts from the first month
- FAQs on Nitaqat for small businesses
Short answer: Under Saudi Arabia’s Nitaqat Mutawar 2026, an establishment with five or fewer workers must employ one Saudi worker. That’s the rule the Ministry of Human Resources and Social Development (HRSD) states on its own Nitaqat calculator. The Saudi only counts as a full worker if their GOSI-registered salary is at least SAR 4,000 a month (SAR 3,000 to SAR 3,999 counts as half), and since 15 April 2026 their contract must be documented in Qiwa. A small business without that Saudi hire falls into the red band, which blocks new visas, work permit renewals, and transfers for expatriate staff.
For a micro business, the Saudi hire also pays for itself in a second way until January 2027. An establishment of nine or fewer people with a full-time owner gets the expatriate levy waived for two expat workers. Add a Saudi employee registered with GOSI and the waiver covers four. At the SAR 800 monthly levy, that’s SAR 1,600 a month saved, set against SAR 470 to SAR 510 a month in employer GOSI for a Saudi earning SAR 4,000.
Saudi Nitaqat for small businesses: the rules in one table
| Rule | What applies |
|---|---|
| Establishments with 5 or fewer workers | One Saudi worker required |
| Establishments with 6 or more workers | A Saudization percentage set by economic activity and total headcount |
| Saudi counts as one worker | GOSI-registered monthly salary of SAR 4,000 or more |
| Saudi counts as half a worker | SAR 3,000 to below SAR 4,000 |
| Saudi not counted | Below SAR 3,000 |
| Contract documentation | Saudi contracts must be documented in Qiwa to count (from 15 April 2026) |
| Where to check your band | Qiwa, under your establishment’s Nitaqat status |
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What changed for companies with under 6 employees
Small establishments used to sit outside the full Nitaqat calculation. The Nitaqat Mutawar program, issued under Ministerial Decision No. 182495 of 11 Shawwal 1442 (23 May 2021), defines an establishment as any business that employs one or more workers for pay, and cancelled the old classification of firms by size. In January 2026, HRSD launched a new phase of Nitaqat Mutawar with Saudization rates set for 2026, 2027 and 2028.
HRSD’s 2026 Nitaqat calculator now spells out the small-business rule. It only accepts establishments with 6 or more workers, and for anything smaller it shows this message: “an establishment with 5 or fewer workers needs to add one Saudi worker only.”
Does the Saudi hire have to be full time?
Not necessarily, but the cheaper options count for less. Under Ministerial Decision No. 61706 on counting Saudi workers in Nitaqat:
| Type of Saudi worker | Counts as | Condition |
|---|---|---|
| Full-time, SAR 4,000 or more | 1 | Registered with GOSI at that salary |
| Full-time, SAR 3,000 to SAR 3,999 | 0.5 | Registered with GOSI |
| Part-time | 0.5 | GOSI wage of at least SAR 3,000; no more than two employers |
| Student working part-time | 0.5 | GOSI wage of at least SAR 3,000; one employer only |
| Flexible work | 0.33 | 168 hours worked in the month |
| Person with a disability | 4 | GOSI wage of at least SAR 4,000; one employer only |
A small business needs one full Saudi worker, so a single half-count employee leaves it short. The simplest route is one full-time Saudi on SAR 4,000 or more, registered with GOSI at that wage.
Plan for the salary to rise. Higher counting thresholds are scheduled from 25 April 2027 and 25 April 2028. Our Nitaqat salary thresholds 2027-2028 guide explains what a SAR 4,000 employee will count as after each change.
Does the owner count as the Saudi worker?
HRSD’s calculator note doesn’t say, and the 2026 guide is written for establishments of 6 or more. Check how your establishment shows in Qiwa before deciding the owner covers the requirement. The expatriate levy exemption is clearer: the extra two exempt workers only apply when at least one Saudi other than the owner is registered with GOSI.
What happens if a small business has no Saudi employee?
| Nitaqat band | What’s blocked |
|---|---|
| Platinum, high green, medium green | Nothing; full access to HRSD services |
| Low green | New visa applications and profession changes |
| Red | New visas, issuing or renewing work permits for expatriate staff, transferring workers in, profession changes, and opening a new branch |
For a business of three or four people, red is serious. When an expat employee’s work permit comes up for renewal, it can’t be renewed until the business moves out of red. That puts the employee’s legal status, and the business’s ability to keep them, at risk.
The expatriate levy exemption ends on 21 January 2027
The Council of Ministers exempted small establishments from the expatriate levy in April 2020, on these conditions:
| Condition | Expats exempt from the levy |
|---|---|
| 9 or fewer workers including the owner, and the owner works full time in the business and is registered with GOSI | 2 |
| The same, plus at least one Saudi worker other than the owner registered with GOSI | 4 |
Qiwa has said the exemption doesn’t cover any period after 21 January 2027 (14 Sha’ban 1448). The owner can’t own another establishment or be a partner in one, and businesses with more than one owner don’t qualify.
Example: owner plus four expatriate workers
| No. Saudi employee | One Saudi on SAR 4,000 | |
|---|---|---|
| Expats exempt from the levy until 21 January 2027 | 2 | 4 |
| Monthly levy at SAR 800 per expat | SAR 1,600 | SAR 0 |
| Saudi salary | SAR 0 | SAR 4,000 |
| Employer GOSI for the Saudi | SAR 0 | SAR 470 (existing system) or SAR 510 (first job from 3 July 2024) |
| Nitaqat band | Red | Meets the one-Saudi requirement |
Adding the Saudi takes this business to six people. Confirm in Qiwa how your establishment’s headcount is counted, because at 6 workers or more the activity’s Saudization percentage applies instead of the one-Saudi rule.
From 22 January 2027, all four expats pay the levy whether or not you employ a Saudi. The Saudi hire is then purely about Nitaqat, and about keeping your work permits renewable.
What the Saudi hire costs in payroll
| Cost item (SAR 4,000 contributory wage) | Existing GOSI system | First job from 3 July 2024 (rates from 1 July 2026) |
|---|---|---|
| Employee GOSI deduction | SAR 390 (9.75%) | SAR 430 (10.75%) |
| Employer GOSI contribution | SAR 470 (11.75%) | SAR 510 (12.75%) |
| Total monthly employer cost | SAR 4,470 | SAR 4,510 |
GOSI is charged on basic salary plus housing allowance. See our GOSI calculation guide for the full rates and the 2027 and 2028 increases. Salary also has to be paid through the Wage Protection System, as covered in our WPS and Mudad guide.
How to add a Saudi employee so they count in Nitaqat
- Agree a GOSI-registered salary (basic plus housing) of at least SAR 4,000, so the employee counts as one full worker.
- Document the employment contract in Qiwa. Since 15 April 2026, Nitaqat only counts Saudi employees with an electronically documented contract.
- Register the employee with GOSI at the same salary. Nitaqat uses the GOSI wage, not the figure in the offer letter.
- Make sure the employee isn’t registered with another employer. Students, persons with disabilities, and released prisoners count for one entity only.
- Pay salary through Mudad or your bank’s WPS channel each month.
- Check your Nitaqat status in Qiwa after the next update, and keep checking it before any visa, transfer, or work permit renewal.
Our Qiwa guide for employers covers contract documentation and how to read your Nitaqat status.
Mistakes small businesses make with Nitaqat
- Hiring a Saudi at SAR 3,500, who counts as half a worker and leaves the business short.
- Registering the Saudi with GOSI at a lower wage than the contract, so they count for less than the business is paying.
- Leaving the contract undocumented in Qiwa, so the employee doesn’t count at all.
- Hiring a Saudi who is still registered with a previous employer.
- Waiting until an expat’s work permit renewal is due, then finding the business is in red.
More Saudi payroll guides: Employing expatriates in KSA | End of service benefits in KSA | Online payroll for small businesses in the GCC
Get your Saudi hire set up so it counts from the first month
Our Saudi payroll team sets the Saudi employee’s GOSI wage at the right level for Nitaqat, documents the contract in Qiwa, registers them with GOSI and pays salary through Mudad each month. Our HR team drafts the contract and checks your Nitaqat status before every visa or work permit renewal. Send us your Saudi headcount for a free quote.
Looking for Expert Support?
Connect with our experienced team for trusted advice and dedicated assistance. We’re committed to supporting you throughout the entire process.
FAQs on Nitaqat for small businesses
Sources:
HRSD: Nitaqat Mutawar 2026 calculator |
HRSD: Ministerial Decision No. 182495 (Nitaqat Mutawar) |
HRSD: Ministerial Decision No. 61706 on counting Saudi workers |
HRSD: SAR 4,000 minimum wage for counting Saudis in Nitaqat |
HRSD: Electronic documentation of contracts in Qiwa |
HRSD: Expatriate levy exemption for small establishments |
HRSD: Nitaqat Mutawar 2026 procedural guide
