Latest news with #MinistryOfHumanResources
Malay Mail
12 hours ago
- Business
- Malay Mail
Minimum wage order at RM1,700 to be enforced nationwide from August 1, no more deferments, says ministry
PUTRAJAYA, July 22 — The 2024 Minimum Wage Order of RM1,700 will come into full effect from August 1, according to the Ministry of Human Resources (Kesuma). In today's statement, Kesuma announced that the order will apply to employers nationwide, regardless of the number of employees hired, following the end of the six-month deferment period on July 31. 'Effective August 1, 2025, without exception, all employers, including those who previously benefited from the deferment period, must comply with the RM1,700 monthly minimum wage order. 'This includes non-citizen employees and contract apprentices, but does not apply to domestic workers,' read the statement. The ministry reminded employers to review their company's wage structure to ensure no employee receives a basic salary below the stipulated minimum rate, and to progressively adjust operations by focusing on productivity enhancement and employee skills training. Kesuma also warned that failure to comply with the order is an offence under the National Wages Consultative Council Act 2011, which carries a fine of up to RM10,000 for each affected employee, with an additional penalty of RM1,000 for each day the offence continues after conviction. For repeat offences, the maximum penalty may reach RM20,000 or imprisonment for up to five years. The ministry also encouraged employers to adopt the voluntary progressive wage policy (PWP) that serves to complement the implementation of the minimum wage order. 'Through the PWP, employers have the opportunity to raise employees' incomes based on productivity, skills, and work contributions, while also benefiting from targeted cash incentives provided by the government. 'This not only helps companies retain highly skilled workers but also strengthens long-term competitiveness in an increasingly challenging labour market,' it added. Complaints regarding the implementation of the Minimum Wage Order can be submitted to the Department of Labour nationwide or via Kesuma's official website. Further information on the minimum wage order and the PWP can be obtained at and respectively. — Bernama
Arab News
6 days ago
- Business
- Arab News
Saudi ministry launches initiatives to build sustainable skills ecosystem
RIYADH: The Ministry of Human Resources and Social Development marked World Youth Skills Day on July 15, highlighting the Kingdom's commitment to a skill-based labor market that enhances productivity and competitiveness. To mark the occasion, the ministry launched Skills Week, running until July 19. It is led by the newly established Skills and Training Deputyship in cooperation with public and private sector partners. The scheme aims to align education and training programs with labor market needs through several projects, including the Waad training initiative. Waad addresses gaps between education outcomes and market demands, preparing Saudi youth to compete locally and internationally. In its first phase, the initiative exceeded its targets by delivering 129 percent of planned training opportunities through 14 private companies. Its second phase aims to offer 3 million training opportunities by 2028, supported by more than 65 public and private sector partners. The ministry also introduced the Sector Skills Framework tool, which maps more than 8,500 technical skills across 12 key sectors. The tool serves as a strategic guide for developing sector-specific training programs, supported by 13 councils comprising more than 200 experts. Other initiatives highlighted during Skills Week include the launch of the Saudi Skills Classification Taxonomy to define required skills for each profession, and the release of Skills Survey findings conducted with the World Bank on more than 3,000 firms to identify workforce skill gaps. The ministry also launched Waad Club, a volunteer platform promoting mentoring and knowledge exchange. Ahmed Al-Zahrani, deputy minister for skills and training, said: 'Organizing Skills Week reflects our deep commitment to the goals of the ministry. This effort supports all groups across our labor market. 'We are building a sustainable skills ecosystem integrated with education and training, preparing a young generation ready to drive Saudi Arabia's transformation and compete globally, in line with Vision 2030.' All of the initiatives operate within the framework of Saudi Arabia's Labor Market Strategy, approved by the Council of Ministers in 2020. The strategy addresses labor market challenges and Vision 2030 goals, aiming to increase labor participation, improve market efficiency and productivity, and reduce unemployment. As a result, labor productivity rose by 4.9 percent in 2022, the highest growth among G20 economies. The ministry also leads the national skills agenda through the National Skills Strategy, which serves as the Kingdom's skills policy to guide planning, development, recognition and management. It aims to bridge the gap between supply and demand, enhance employability across all segments and promote lifelong learning. Reinforcing this commitment, the ministry launched the Skill Accelerator Program to upskill and reskill more than 300,000 Saudis by 2027. The program focuses on the top seven sectors driving gross domestic product growth and employment, offering more than 3,000 training programs nationwide in partnership with local and international providers. Through the Professional Verification Program, Saudi Arabia ensures that skilled workers from more than 169 countries, covering more than 1,000 professions, meet rigorous standards, strengthening labor market quality. The Kingdom is also reforming its education system through the Human Capability Development Program, spanning nursery to university and lifelong learning, to build a resilient educational foundation aligned with future labor demands.
The National
09-07-2025
- Business
- The National
Saudi Arabia's new work permits to improve flexibility in hiring talent from overseas
Saudi Arabia's new work permit classification system will introduce a more flexible approach to hiring high-skilled expats and attracting global talent but less-skilled workers may face more scrutiny, recruiters say. The kingdom's Ministry of Human Resources and Social Development introduced a new system on Sunday to hire non-Saudis by classifying work permits into three categories of high-skilled, skilled and basic. This is based on specific criteria including educational qualifications, professional experience, professional skills, wages and age. "This initiative aims to foster an attractive labour market and empower human competencies within a professional and sustainable work environment," the ministry said at the time. The system will be introduced in two phases, according to the ministry. The kingdom's reclassification of work permits for those currently employed in the labour market was scheduled to take effect on July 5. From August 3 onwards, it will start the classification of work permits for those entering the kingdom. Recruiters say the move is largely a positive step for the kingdom's labour market but are watching how the new rules will be introduced. If you are high-skilled and well-paid, you are fine. But if you are low-skilled or borderline, you are at risk Nevin Lewis, chief executive of Black & Grey HR "It is good in theory, but execution will decide if it's truly business-friendly or just another bureaucratic drag," Nevin Lewis, chief executive of Black & Grey HR, told The National. "For Saudis, it's good, for expats, it's a mixed bag. If you are high-skilled and well-paid, you are fine. But if you are low-skilled or borderline, you are at risk. More paperwork, more scrutiny and more chance your role will be 'Saudised'." Positions such as administration, clerical work, drivers, helpers, junior HR executives, junior accountants, retail floor staff and call centres will "get squeezed first", followed by mid-level support roles including junior supervisors, co-ordinators and technicians, he added. "If you're easy to replace, you're exposed," Mr Lewis said. "Engineers, tech specialists, senior finance and C-suite niche roles will stay attractive for expats." Companies in the non-oil private sector in the kingdom are hiring at a fast pace. In June, business conditions strengthened, spurring volumes of new work and an acceleration in hiring activity that resulted in the sharpest rise in employment levels since May 2011, the latest PMI report by S&P Global found. Non-oil companies' outlook for the year was bullish as they remained confident of an uplift in activity over the next 12 months, with the degree of positivity rising to a two-year high, the report showed. Optimism was driven largely by resilient domestic economic conditions, robust demand and improving sales pipelines. Saudi Arabia's economy grew 2.7 per cent in the first quarter, fuelled by a 4.2 per cent jump in non-oil activities, as the kingdom pushes ahead with diversifying from hydrocarbons. The new skills-based work permit classification system aims to achieve strategic objectives including improving the performance of workers and transferring expertise to the Saudi labour market by attracting highly skilled workers, the ministry said. This comes amid the kingdom's push for Saudisation and more job creation for citizens. Recruiters say the system will take into account non-Saudi workers who may have slipped through the cracks in previous classifications. "If you have somebody with 30 years of experience but they haven't got a degree, you can still get them into the kingdom because you weigh one [skill] against another," David Mackenzie, group managing director at Mackenzie Jones Group, told The National. The new system takes a more pragmatic approach in classifying jobs that Saudis can do against positions for which expats are needed to fill a gap in highly skilled talent. "The system seems to be a lot more flexible ... if you're an AI engineer you can come in as a highly skilled person because that's what the kingdom needs at the moment," Mr Mackenzie said. "But if you're an HR person, you're further down the line because there are Saudis that can do the job." The move is a positive and flexible way of bringing much-needed talent into the kingdom in areas such as AI, health care and technology, sectors in which Saudi talent has yet to develop fully. "I think what the Saudi authorities are realising is that there are some [job] categories that they can easily fill with Saudis," Mr Mackenzie said. "What they need now is to bring in talent who can teach Saudis other skills, such as data science and AI engineering."
Gulf Business
07-07-2025
- Business
- Gulf Business
Work permits for expats: Saudi unveils new skill-based system
Image credit: Getty Images Saudi Arabia has announced a major update to its work permit system for expatriate workers, classifying permits into three main skill categories: high-skill, skilled, and basic. The decision, issued by Minister of Human Resources and Social Development Ahmed Al Rajhi, is designed to enhance workforce efficiency and attract global talent. Rise- The new classification system aims to align the skill levels of foreign workers with international standards, ensuring that expatriates meet job-specific qualifications. Authorities say the move will improve labor market operations, facilitate the transfer of global expertise, and support the Kingdom's innovation-driven economy, According to The ministry emphasised that the new system is part of a broader effort to build a more efficient, transparent, and attractive labor market in line with the country's Vision 2030 and the National Transformation Program. By improving verification mechanisms and better managing skill distribution across the workforce, the government hopes to boost productivity and support sustainable economic growth. Work permit reform aims to attract talent, boost innovation The updated work permit structure reflects the government's push to transform the labor market by bringing in high-skilled professionals and aligning expatriate job roles with actual qualifications. Officials say this shift will help modernise the economy and create an environment conducive to innovation and advanced business models. The guidance manual released by the ministry provides employers and workers with a detailed overview of how the classification system operates and how qualifications will be evaluated. Labor market sees strong growth in May In a related development, The report showed continued growth in the number of private sector employees, with the total workforce reaching 11,370,796 by the end of May. Of this total, 2,358,227 were Saudi nationals—comprising 1,386,904 men and 971,323 women—while non-Saudi workers numbered 9,012,569, including 8,641,249 males and 371,320 females. More Saudis entering the private sector The labor report also highlighted a net gain in local employment, with 30,881 Saudi nationals joining the private sector for the first time in May. Officials consider this a positive trend in support of Saudisation efforts and long-term workforce development. The NLO, established by Royal Decree in 2010, serves as the country's primary source for labor market data. It regularly publishes labor indicators and monthly reports, including Overview of the Saudi Labor Market in the Private Sector, to inform policy and guide decision-making.
Zawya
02-07-2025
- Business
- Zawya
Saudi: Third phase of e-transfer of domestic workers' salary begins July 1
RIYADH — The Ministry of Human Resources and Social Development announced that the third phase of the electronic salary transfer service for domestic workers through digital wallets came into force on Tuesday, July 1. The third phase applies to employers with three or more domestic workers. This follows the mandatory implementation of the second phase, which began on January 1 of this year for employers with more than four domestic workers. The ministry is implementing the mandatory system of e-transfer of salaries of domestic workers in a phased manner. The e-transfer of salary service will be applied to those with two or more workers starting October 1, 2025, and will include all domestic workers by January 1, 2026. This initiative aims to guarantee the rights of domestic workers regarding their salaries, support the ministry's efforts to develop the domestic workers sector, and enhance the rights of both employers and domestic workers. The ministry emphasized the importance of the electronic salary transfer service of domestic workers, as it represents a pivotal step toward enhancing transparency and reliability in the wage payment process, facilitating it through digital wallets and approved banks through the Musaned platform. This service contributes to preserving the rights of all parties to the contractual relationship. It is noteworthy that the service of paying domestic workers' salaries through the specified official channels includes a number of advantages for the employer and the worker, and enhances the proof of salaries for domestic workers, and facilitates the employer's completion of procedures related to the worker upon the end of the contractual relationship or upon his travel. It also guarantees the worker the receipt of salaries on a regular and fixed basis, and facilitates even transfer of the salary to his family in his country, directly through the same specified official channels with complete ease and security. The Ministry of Human Resources and Social Development introduced this salary transfer system through the Musaned platform, its official website for household services and home employment program. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
