13MP: Labour Market Reforms To Create More Dynamic, Competitive And Sustainable Ecosystem
According to the 13MP document released by the Ministry of Economy today, the reforms are in line with the aspirations of the MADANI Economy with the main focus on increasing the participation of local workers in highly skilled jobs with competitive salaries while reducing dependence on foreign workers.
The document states that the government targets a significant reduction in foreign workers to 10 per cent of the total workforce by 2030, and further to five per cent by 2035.
"In this regard, the government will implement the Multi-Tier Levy Mechanism (MTLM) starting 2026 which imposes different levy rates based on the level of sector dependence on foreign workers and the proceeds are channeled into the Trust Fund to promote automation and mechanisation," the document said.
The conditions for issuing Temporary Work Visit Passes will also be tightened, including eligibility criteria for changing employers and sectors, barriers to doing business and setting a shorter working year limit.
In line with this, local workforce participation will be enhanced through programmes such as the Academy in Industry (ADI), with priority given to matching jobs to local participants before approving the hiring of foreign workers.
"Foreign worker applications will be required to go through a clearinghouse that will be established to facilitate the matching of ADI programme participants first before approval. This measure will ensure that local workers are given priority to fill vacant positions," according to the document.
In terms of providing accommodation facilities, the document states the importance of providing comfortable facilities close to the workplace as an important factor in attracting local workers.
"Various initiatives will be introduced to encourage employers to provide adequate accommodation facilities, while related acts and regulations will be reviewed to ensure the welfare and safety of workers are guaranteed," according to the document.
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