Saudi Arabia’s Qiwa platform has clarified key employment contract rules affecting Saudi employees under the Nitaqat Saudization program, including limits of five contracts for Nitaqat counting, seven contracts within 365 days, and two active contracts at the same time.

Qiwa Clarifies New Nitaqat Contract Rules

The Qiwa platform, operated under the Ministry of Human Resources and Social Development (MHRSD), has finalized the mechanism for counting Saudi employees in the Nitaqat Saudization program.

Under the clarified mechanism, a Saudi employee’s employment contracts during the previous 52 weeks, equivalent to one year, must not exceed five for the employee to continue being counted as one Saudi employee in Nitaqat.

The rules are separate from the limit governing the total number of employment contracts a Saudi employee can enter into during a 365-day period.

Conditions for Counting a Saudi Employee in Nitaqat

For a Saudi employee to be counted toward an establishment’s Nitaqat Saudization percentage, the applicable requirements include the following:

• The employee must have a valid employment contract registered with Qiwa.

• The employee’s registered salary on Qiwa must be at least SR4,000.

• The employee must not be registered as a part-time employee.

• The employee must not be registered as a student.

When the applicable conditions are satisfied, the Saudi employee can be counted as one Saudi employee under the Nitaqat program, subject to the contract-counting rules.

The SR4,000 salary threshold has previously been established as an important requirement for counting Saudi employees in Nitaqat. Saudi Arabia’s Nitaqat salary requirement provides additional background on the threshold.

Qiwa Limits Saudi Employees to Seven Contracts in One Year

Qiwa has also clarified a separate restriction concerning the number of employment contracts a Saudi employee can enter into during a 365-day period.

A new employment contract cannot be issued if a Saudi employee has already entered into more than seven employment contracts within the applicable 365-day period, calculated from the date of the employee’s first contract.

In this situation, an eighth employment contract cannot be issued until a full year has passed from the date of the first contract in the relevant period.

The restriction has previously resulted in employers seeing the Qiwa system notification: “No new employment contract is allowed for the Saudi employee.” Qiwa has separately confirmed the seven-contract annual limit and the maximum number of simultaneous contracts.

Saudi Employees Can Have a Maximum of Two Active Contracts

Qiwa has also clarified the rules governing Saudi employees who already have multiple employment contracts.

A Saudi employee can have a maximum of two valid employment contracts at the same time.

If an employee already has two active contracts and wants to accept another job, one of the existing contracts must first be terminated. A new employment contract can then be concluded after one of the current contracts has ended.

Qiwa provides an online process for employees to view and manage their existing employment contracts, including submitting a contract termination request through the platform. 

What the 5, 7 and 2 Qiwa Rules Mean

5 Contracts for Nitaqat Counting

A Saudi employee’s contracts during the previous 52 weeks must not exceed five for the employee to continue being counted as one Saudi employee in the Nitaqat calculation, subject to the other eligibility requirements.

7 Contracts Within 365 Days

A Saudi employee who has already entered into seven employment contracts within the applicable 365-day period cannot enter into an eighth contract until the relevant one-year period has passed.

2 Active Contracts at the Same Time

A Saudi employee can have no more than two valid employment contracts simultaneously. To take another job, one of the existing contracts must first be terminated.

Key Qiwa and Nitaqat Rules for Saudi Employees

• Nitaqat counting: Contracts during the previous 52 weeks must not exceed five for the employee to continue being counted as one Saudi employee.

• Minimum salary: The registered salary must be at least SR4,000 for the applicable Nitaqat counting requirement.

• Qiwa registration: The employment contract must be valid and registered on Qiwa.

• Employee status: The employee must meet the applicable full-time and non-student requirements for Nitaqat counting.

• Seven-contract limit: An employee who has reached seven contracts within the applicable 365-day period cannot enter into an eighth contract until the relevant one-year period has passed.

• Two-contract limit: A Saudi employee cannot have more than two active employment contracts at the same time.

• Taking another job: An employee with two active contracts must terminate one before entering into another employment contract.

Why These Qiwa Rules Matter

The clarified rules distinguish between the requirements for counting Saudi employees under Nitaqat and the separate limits governing the number of employment contracts a Saudi employee can hold or enter into over time.

Employers should therefore review Saudi employees’ Qiwa contract records, salary details and current employment status when calculating Nitaqat Saudization levels or attempting to issue new contracts.

Employees who already have multiple contracts should also check their active Qiwa contracts before accepting another employment offer.

These Qiwa requirements form part of Saudi Arabia’s ongoing efforts to regulate employment contracts, improve labor-market compliance and manage Saudization calculations through digital employment services.