Saudi Arabia has announced a change to its domestic worker quotas, affecting companies with up to 15,000 employees. Under the new rule, firms with 3,000 employees or fewer must ensure that 30 per cent of their workforce consists of domestic workers.
Companies with between 3,001 and 10,000 workers will be required to meet a 20 per cent quota, while businesses with 10,001 to 15,000 employees must maintain a 10 per cent quota. Firms with more than 15,000 employees are now exempt from any domestic worker quotas.
The reform, introduced by the Ministry of Human Resources and Social Development, is expected to better balance supply and demand in the support workers sector, improving the legislative environment. It comes as Saudi Arabia’s human resources market is experiencing rapid growth, with a projected annual expansion rate of 11.1 per cent from 2024 to 2030.
Human resources firms have welcomed the policy change. The new rule is expected to reduce the company’s burden to recruit a specific percentage of domestic workers. Some companies have also pointed out that the change would help balance the supply and demand in the domestic worker sector, benefiting the entire industry.
This change is part of Saudi Arabia’s broader effort to modernise labour laws and improve the business environment across key sectors. The new policy aims to streamline operations and provide companies with more freedom to grow their workforce as needed.
