Logo ofMinistry of Human Resources and Social Development (HRSD)
The Ministry of Human Resources and Social Development (HRSD) launched the second edition of its guide for localizing operation and maintenance (OM) contracts in public entities. 
The second edition included several updates, including an increase in the targeted localization rates for senior management positions from 50% to 100%. Localization targets for engineering and specialized roles increased from 30% to 40%, while supervisory roles require 100% localization.
The Ministry indicated that performance measurement standards have been updated to determine the criteria for the success and sustainability of localization, align job titles with the unified Saudi classification of professions, and identify cases that violate localization requirements.
Updated Localization Rate
Profession
Electrical – Mechanical – Equipment – Civil
Safety – IT – General Services – Management Support
Senior Management Positions
100%
Engineering Specialized Roles
40%
Supervisory Roles
100%
Technical Roles
30%
50%
Operational Vocational
70%
Low-Skilled Labor
Localization opportunities are determined by the entity in each contract based on its assessment of appropriate avenues
According to the guide, the public entity must specify the minimum wage for Saudi workers in the tender booklet and ensure that the contractor is committed to applying it. This wage must correspond to the job level of the Saudi professions specified in the contracts.
The total wage specified in the table below includes all allowances and is before deducting the worker’s share of the General Organization for Social Insurance (GOSI) subscriptions. The contractor must register the full wage in the social insurance system.
Below is the minimum wage according to the new version:
Minimum wage – SAR
Profession Level
Lowest Level
Senior Management Level
The minimum salary is determined by the competing party based on the qualifications and experience required for the administrative position at SAR 8400 + (SAR 600* number of experience years).
Engineering Specialized Level
8400
Supervisory Level
7000
Technical Level
6000
Operational Vocational Level
5000
Low-Skilled Labor
4000
Logo ofMinistry of Human Resources and Social Development (HRSD)
The Ministry of Human Resources and Social Development (HRSD) launched the second edition of its guide for localizing operation and maintenance (OM) contracts in public entities.
The second edition included several updates, including an increase in the targeted localization rates for senior management positions from 50% to 100%. Localization targets for engineering and specialized roles increased from 30% to 40%, while supervisory roles require 100% localization.
The Ministry indicated that performance measurement standards have been updated to determine the criteria for the success and sustainability of localization, align job titles with the unified Saudi classification of professions, and identify cases that violate localization requirements.
Updated Localization Rate
Profession
Electrical – Mechanical – Equipment – Civil
Safety – IT – General Services – Management Support
Senior Management Positions
100%
Engineering Specialized Roles
40%
Supervisory Roles
100%
Technical Roles
30%
50%
Operational Vocational
70%
Low-Skilled Labor
Localization opportunities are determined by the entity in each contract based on its assessment of appropriate avenues
According to the guide, the public entity must specify the minimum wage for Saudi workers in the tender booklet and ensure that the contractor is committed to applying it. This wage must correspond to the job level of the Saudi professions specified in the contracts.
The total wage specified in the table below includes all allowances and is before deducting the worker’s share of the General Organization for Social Insurance (GOSI) subscriptions. The contractor must register the full wage in the social insurance system.
Below is the minimum wage according to the new version:
Minimum wage – SAR
Profession Level
Lowest Level
Senior Management Level
The minimum salary is determined by the competing party based on the qualifications and experience required for the administrative position at SAR 8400 + (SAR 600* number of experience years).
Engineering Specialized Level
8400
Supervisory Level
7000
Technical Level
6000
Operational Vocational Level
5000
Low-Skilled Labor
4000
