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Labor Laws
Nitaqat's logarithmic formula, weighted salary credit, and the April 2026 elimination of the Yellow band explained — with the manual math behind your band.

How to Calculate Your Nitaqat Band Manually — Updated for the April 2026 Phase
Saudi Arabia's Nitaqat Al-Mutawar program entered a new three-year phase on 26 April 2026, with the same underlying formula but materially different numbers. Understanding the manual logic helps you anticipate your band before checking Qiwa.
The official formula
MHRSD uses a logarithmic formula: Required % = m × ln(total headcount) + c. The m and c constants vary by ISIC4 sector and assessment year, and the c-value has been raised for most sectors in the 2026–2028 cycle — meaning your required percentage moves up even if your headcount stays flat.
Salary-based weighting
SAR 4,000+/month: full credit (1.0×); SAR 3,000–3,999: half credit (0.5×); below SAR 3,000: zero credit
Since 15 April 2026, a Saudi employee only counts if their contract is electronically documented and counter-signed on Qiwa — GOSI registration alone is no longer sufficient
Saudi employees with disabilities count at 4× weight, capped at 10% of total headcount; part-time Saudi staff count at 0.5×
The biggest 2026 change: Yellow band eliminated
The Yellow tier no longer exists in the 2026–2028 phase. Companies previously sitting in Yellow have been reclassified directly into Red, with the full consequences that band carries: blocked visa issuance, blocked work permit renewals, and expatriate staff gaining the right to transfer sponsorship without employer consent.
Why the c-value shift matters
Because c-values rose across most sectors in 2026, a company that calculated High Green last year under the same headcount may now land in Mid Green this year, with zero change to actual staffing.
Quick estimation checklist
Confirm every Saudi contract is digitally documented and signed on Qiwa, not just registered in GOSI
Confirm registered Saudi salaries sit at or above SAR 4,000 to receive full credit
Check whether any profession-specific quota (sales, engineering, procurement) applies on top of your general rate, since these carry separate salary floors
Frequently Asked Questions
Does eliminating the Yellow band mean everyone who was Yellow is now Red?
Yes. As of 26 April 2026, establishments previously classified Yellow were reclassified directly into Red, with the full restrictions that band carries on visas and permit renewals.
Does an undocumented Qiwa contract affect my Nitaqat number?
Yes, significantly. Since 15 April 2026, any Saudi national without a digitally signed Qiwa contract is excluded entirely from your Saudization headcount, even if they're registered in GOSI.
Do all Saudi employees count as one full credit?
No. Credit depends on the registered salary: full credit at SAR 4,000+, half credit between SAR 3,000–3,999, and zero credit below SAR 3,000.
How Inclusive Solutions helps
We calculate your actual weighted Nitaqat score under the 2026 rules and flag any Qiwa documentation gaps before they cost you your band. Try our Nitaqat calculator or talk to our team.
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