MHRSD Facts for the New Phase (April 26, 2026)
This guide is grounded in the official facts published by MHRSD for the new phase now in effect since April 26, 2026.
- A new 3-year Developed Nitaqat phase (2026-2028) took effect on April 26, 2026.
- The core model remains logarithmic: y = m * ln(x) + c, but the yearly c constants are revised by year for 2026, 2027, and 2028.
- Sector-specific c-value increases are applied across all economic activity sectors, raising the required Saudization percentage for most industries.
- Profession-specific enforcement dates differ: marketing/sales 60% from April 19, 2026; general Nitaqat phase from April 26, 2026; procurement 70% grace period until May 31, 2026; engineering 30% grace period until June 30, 2026.
- Sector-level targets are separated by year (2026, 2027, 2028), which means one static threshold table is no longer sufficient.
- As of May 2026, the 2026-phase formula constants have been confirmed live across all 2,807 registered economic sub-sectors. Red band and low-green band thresholds increased by an average of 2.37 percentage points versus the previous phase. Certain retail sub-sectors (watches, jewelry, perfumes) saw the largest increases — up to 5 percentage points on the red band threshold.
Multiplier counting rules used for workforce planning
The following are the operational counting rules used in scenario modeling and risk forecasting before hiring commitments.
- Sales and marketing roles: 60% Saudization required (for establishments with 3+ employees in relevant sales/marketing job categories), effective April 19, 2026. Minimum salary SAR 5,500 to count toward Saudization.
- Engineering roles: 30% Saudization required, grace period until June 30, 2026. Minimum salary SAR 8,000 to count toward Saudization.
- Procurement roles: 70% Saudization required (up from 50%), grace period until May 31, 2026.
- Nitaqat calculations must apply year-specific constants (2026 vs 2027 vs 2028), not one persistent c value.
- Any static calculator that does not include the April 26, 2026 phase switch can show a materially wrong expected band.
- Scenario planning must evaluate outcomes both before and after the relevant enforcement dates to avoid false Green/Red assumptions.
Why this guide matters now
The recurring risk is keeping compliance models on pre-switch assumptions. After the staggered enforcement dates (April 19 for sales/marketing, April 26 for the general phase, May 31 for procurement, June 30 for engineering), stale c values or thresholds can immediately misstate your band.
That is why HR teams need a dynamic early-warning platform that compares pre-switch and post-switch outcomes, not a static one-snapshot calculator.
Annual Data Confirmation
MHRSD now requires an annual confirmation of company registration data. Failure to confirm combined with a Nitaqat band drop can freeze business operations.
How the Nitaqat formula behaves after the April 26 update
1) Required threshold
Core formula: y = m * ln(x) + c
- x = total establishment headcount
- m = activity slope, and c = yearly constant that changes across 2026, 2027, and 2028
- y = threshold requirement for classification
2) Your actual establishment ratio
This is your adjusted Saudi count divided by total workers. The word adjusted matters because post-update counting depends on profession wage-floor validation and the correct yearly constants.
Where spreadsheets fail at the phase switch
- Using one c value across all years instead of 2026/2027/2028 constants.
- Keeping one threshold table instead of applying sector-specific c-value increases across all economic activity sectors.
- Counting sales/marketing, engineering, and procurement roles without verifying the new wage floors and profession-specific Saudization rates.
- Ignoring the staggered profession-specific enforcement dates (April 19, April 26, May 31, June 30) and treating them as a single switch date.
Practical steps for the 2026-2028 phase
Step 1: Verify your yearly constants are up to date
Ensure your compliance tool applies the correct yearly c constants per activity, switching automatically between 2026, 2027, and 2028 thresholds.
Step 2: Compare pre-switch and post-switch scenarios
Before approving any offer, evaluate band impact under pre-April 26 rules and current rules, plus 30/60/90-day projections.
Step 3: Set up early warning alerts
Define a safety buffer above the official thresholds, and set up internal alerts for your HR team when your band approaches the lower boundary.
FAQ
Why are free Nitaqat calculators not enough for compliance?
Static calculators cannot handle the April 26 switch and annual constants. Compliance requires live scenario planning before decisions are finalized.
What is the most important control to avoid a surprise Red band drop?
Use an early-warning threshold tied to the next band boundary so HR sees risk before the drop, not after restrictions begin.
Is this guide a replacement for Qiwa verification?
No. This guide is educational. Final compliance confirmation must come from official MHRSD and Qiwa systems.
Official References
Next Step
If your team relies on a static free calculator, misclassification risk rises at the April 26 switch. Move to dynamic scenario planning before every hiring decision.