Full Nitaqat Count
Counted as one Saudi employee, subject to the conditions and data registered in Qiwa.
A guide for business owners and HR leaders
Benefits of Hiring Employees
from the Displaced Tribes Category
Understand the impact on Nitaqat, the work-permit financial levy exemption, occupational hazards insurance, and WPS compliance-rate calculation—then estimate the operating savings for your business.
- Counted as one Saudi employee in Nitaqat
- Exempt from the work-permit financial levy when correctly classified in Qiwa
- Covered by the 2% Occupational Hazards Branch
- Excluded from the WPS compliance-rate calculation
Responsible Decision Path
Reviewed 08/07/2026
- 01VerifyIdentity, occupation, contract, calculation
- 02MeasureActual costs, not broad estimates
- 03ReinvestIncentives, training, retention, productivity
NitaqatPotential positive impact
GOSI2% occupational hazards
Financial levyExempt for the registered category
Financial Levy Exemption
Applies when the employee is correctly classified in Qiwa; other service fees remain separate.
Occupational Hazards Only
The employee is covered by the 2% Occupational Hazards Branch, paid by the employer.
Excluded from the Rate Formula
Not included in the WPS compliance-rate calculation; wage payment and documentation remain required.
Benefits of Displaced Tribes hiring for businesses
Turn regulatory benefits into savings and productivity.
The decision is not limited to comparing two worker categories. It starts with analyzing the role’s cost, conditions, and risks. When lower non-wage costs are verified, the business can direct part of the difference to training, incentives, and improved retention.
A portion of every saving verified by the business can be redirected to performance incentives, training, and operational quality, while maintaining Saudi national priority and complying with regulations and restricted occupations.Suggested operating principle for businesses
Fair and clear priority
Priority goes to qualified Saudi nationals, followed by consideration of other categories in line with regulations and equal opportunity.
Reinvest the savings
Allocate part of the expected savings to incentives and development rather than treating it only as short-term margin.
Sustainable local value
Improve retention and family stability while reducing repeated recruitment and onboarding costs, with outcomes measured in practice.
Independent review of the report
What is officially verified, what is conditional, and what needs further documentation?
Officially verified
Case-dependent
Needs official confirmation
Officially verifiedQiwa
Nitaqat calculation
Qiwa states that an employee from the Displaced Tribes category is counted as one Saudi employee for localization. The business must verify that the employee data, contract, and calculation conditions are complete in its account.
Open Official SourceOfficially verifiedGOSI
Occupational hazards at 2%
The Occupational Hazards Branch is mandatory for all workers without distinction. Its rate is 2% of wages and is paid by the employer. Pensions and SANED apply to Saudis under the relevant rules.
Open Official SourceConfirmed by Qiwa calculatorWork-permit financial levy
Exempt from the work-permit financial levy
Qiwa’s calculator lists holders of the five-year card in the Displaced Tribes category among the groups exempt from the work-permit financial levy. The employee must be registered under the correct Qiwa classification for the exemption to apply.
Important distinction: the exemption covers the financial levy. It does not automatically make the basic permit issue or renewal fee, or other government services, zero.
Open the official Qiwa calculatorContract-dependentLabor Law
Travel, service transfer, and visas
The report assumes savings in travel, visas, and service transfers. These items depend on the worker’s status, contract, and required procedure, so they are editable calculator inputs rather than guaranteed exemptions.
Review Employer ObligationsConfirmed for rate calculationMudad / Wage Protection
Excluded from the compliance-rate calculation
Under Mudad’s published update, employees in the Displaced Tribes category are excluded from the business’s Wage Protection compliance-rate calculation. Operationally, the employee is not included in the rate formula, so a missing record does not reduce the business’s compliance percentage.
Important: exclusion from the rate formula does not make wage payment optional. Wages must still be paid on time and documented under the contract and Labor Law, and the exclusion does not automatically authorize cash payment.
Estimate, not a guaranteeReport
Annual saving of SAR 20,000
The report’s figure combines estimated cost items. No single amount applies to every business, so the page provides a transparent calculator that shows inputs and results before a decision is made.
Use the CalculatorSuggested hiring policy
Apply the same job criteria to all candidates, document the selection rationale, and preserve localization priority, equal opportunity, and non-discrimination. The National Policy for Equal Opportunity and Equal Treatment was published in February 2026.
A scenario calculator, not a promise of savings
Calculate the operating difference using your business figures
All values are editable. Salaries and general health insurance are excluded unless you add them under other costs, because they may be equal or contract-dependent.
From verification to controlled implementation
7-step implementation roadmap
The following steps reduce the risk of relying on general or outdated information and turn the decision into an auditable process.
- 1
Verify identity and eligibility
Match the identity type, status, and permitted occupation in Qiwa; do not rely on a verbal description of the category.
- 2
Confirm the exemption in Qiwa
Verify that the employee is registered under the Displaced Tribes category exempt from the financial levy, and retain an internal dated record.
- 3
Document the contract through Qiwa
Since 15 April 2026, counting Saudi employees in Nitaqat is linked to documented contracts. Documentation is also essential for protecting rights and standardizing data.
- 4
Confirm social insurance registration
Verify the correct coverage, contributory wage, and application of the Occupational Hazards Branch.
- 5
Verify the employee classification in Mudad
Confirm that the employee appears within the categories excluded from the compliance-rate calculation. Do not treat that exclusion as a waiver of wage payment or documentation.
- 6
Run a limited pilot
Start with a defined number of roles in a suitable sector, then measure attendance, productivity, retention, and onboarding cost.
- 7
Reinvest a stated share
Direct part of verified savings to performance incentives and training, and review the result quarterly.
Important recent information:
The Ministry of Human Resources announced that documenting Saudi employee contracts in Qiwa is required for Nitaqat calculation from 15 April 2026. For specially treated categories, verify that the contract and identity are correctly reflected in the business account.
Source
Strategic assessment
A decision matrix more precise than a two-way comparison
One lower-cost item is not enough. The better decision balances compliance, skills, productivity, stability, and risk.
| Factor | Displaced Tribes category | Resident expatriate employee | Verification method |
|---|---|---|---|
| Occupational hazards | 2% | 2% | GOSI |
| Nitaqat calculation | One Saudi employee | Included in total workforce | Qiwa + Nitaqat calculator |
| Work-permit financial levy | Exempt when correctly classified | Based on business and period | Qiwa calculator |
| Basic permit issue/renewal fee | Verify by transaction | Verify by transaction | Qiwa work-permit service |
| Wage Protection | Excluded from rate calculation | Included in rate calculation | Mudad + wage file |
| Cultural adaptation | Measurable hypothesis | Varies by individual | Actual performance pilot |
| Employee retention | No general rate available | No general rate available | 6–12 months of business data |
The full report in an accessible format
Strategic report: from 11 pages to 9 practical themes
All report themes are retained with a corrected presentation: each claim is linked to a verification status, and estimates are shown as inputs rather than fixed facts.
01 Strategic objective and four decision factors
Enable the business to balance cost reduction, Nitaqat impact, operational flexibility and digital compliance, and stability and productivity. These factors now structure the page rather than appearing as isolated slogans.
02 General comparison between the two categories
The report compares insurance, fees, Nitaqat, and Wage Protection. The page corrects the Wage Protection point: the exclusion concerns the compliance-rate calculation, not the underlying duty to pay wages.
03 Direct social insurance cost
The report applies the 2% occupational hazards rate to both categories and states that the real difference is elsewhere. This point is supported by official GOSI guidance.
04 Government fees and annual savings
The report combines the financial levy, work permits, travel, visas, service transfer, and dependent medical insurance. The corrected position is that correctly classified employees in the Displaced Tribes category are exempt from the work-permit financial levy, while basic permit fees and other services must be treated separately.
05 Potential advantage under Developed Nitaqat
The report presents full localization weight and a positive impact on the business’s Nitaqat status. Qiwa supports counting an employee from the category as one Saudi employee, subject to the business verifying its own conditions.
06 Operational flexibility and Wage Protection
The report links a WPS exemption to reduced suspension risk. The corrected position is that Mudad’s update excludes the category from the business compliance-rate calculation, while the duty to pay and document wages remains.
07 Loyalty and cultural adaptation
The report assumes faster adaptation, higher retention, and lower repeat-hiring costs. These are potential advantages but must be measured inside each business rather than attributed automatically to every individual.
08 Implementation recommendations
Reinvest savings in incentives, focus on retail, hospitality, and logistics, and document contracts through Qiwa. These recommendations have been converted into a seven-step auditable roadmap.
09 Conclusion and disclaimer
The objective is to combine cost reduction, localization, compliance, and stability. The page confirms that this approach does not mean hiring at the expense of Saudi nationals, who retain priority when they meet the job requirements.
Questions before deciding
Most important questions
Is the work-permit financial levy due for the Displaced Tribes category?
No. When the employee is registered under the recognized Displaced Tribes classification in Qiwa, the employee is exempt from the work-permit financial levy. This does not mean that every permit issue, renewal, or other government service fee is zero.
Is an employee from the Displaced Tribes category counted in Nitaqat?
Qiwa states that the employee is counted as one Saudi employee for localization. Verify the identity type, contract, data, and calculation conditions shown in the business account.
Is Wage Protection optional for this category?
Wage payment is not optional. Mudad’s published update confirms that employees in the category are excluded from the business’s compliance-rate calculation, so they are not part of the formula. Payment on time and wage documentation remain employer obligations under the contract and Labor Law.
Is the annual saving SAR 20,000 per employee?
This is an estimate in the report, not an official rate. The calculator shows how the figure may be similar, lower, or zero depending on actual costs.
Does this approach override Saudi national hiring priority?
No. Priority for qualified Saudi nationals remains a fixed principle, and implementation must comply with localization, restricted occupations, and equal opportunity.
Start with your business case
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