AI Summary
Logo of Ministry 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 (O&M) 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.
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Updated Localization Rate |
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Profession |
Electrical - Mechanical - Equipment - Civil |
Safety - IT - General Services - Management & Support |
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Senior Management Positions |
100% |
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Engineering & Specialized Roles |
40% |
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Supervisory Roles |
100% |
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Technical Roles |
30% |
50% |
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Operational & Vocational |
70% |
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Low-Skilled Labor |
Localization opportunities are determined by the entity in each contract based on its assessment of appropriate avenues |
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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:
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Minimum wage - SAR |
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Profession Level |
Lowest Level |
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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). |
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Engineering & Specialized Level |
8400 |
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Supervisory Level |
7000 |
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Technical Level |
6000 |
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Operational & Vocational Level |
5000 |
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Low-Skilled Labor |
4000 |
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