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The Ministry of Labor has imposed a minimum of 30% Saudization in the accounting profession in Saudi Arabia. The decision has been taken to promote local and educated talent.
Saudization in the Accounting Profession
The decision of 30% Saudization in the accounting profession aims to create around 9,800 jobs for locals in Saudi Arabia.
1 – All private companies would be required to maintain at least a 30% Saudization level in accounting, finance, and auditing jobs.
2 – Only those Saudi accountants/auditors who are registered with the SOCPA would be counted for Saudization.
3 – The decision will be implemented from 1/11/1442 corresponding to June 11, 2021.
4 – The 30% Saudization in the accounting profession is only implemented in those companies where more than 5 accountants are employed.
5 – The minimum monthly salary for a Saudi accountant/auditor would not be less than SR 6,000 for bachelor's holders and SR 4,500 for diploma holders to be counted in Saudization calculation.
— وزارة الموارد البشرية والتنمية الاجتماعية (@HRSD_SA) December 23, 2020
19 Accounting Professions to be Saudized
All the professions which are required to be registered with SOCPA would be Saudized gradually.
- Accounts Manager.
- Director of General Auditing Department.
- Cost clerk.
- Internal Auditor.
- Finance clerk.
- General Accountant.
- Director of Zakat and Taxes Department.
- Manager, accounts, and budget
- Senior Financial Auditor.
- Director G.A of reviewing.
- Director, financial, and accounting affairs.
- Auditor accounts.
- Accounts auditing technician.
- Director of Financial Reports Department.
- General Accounts technician.
- Chief of internal auditing programs.
- Financial Auditing Supervisor.
- Cost accounting technician.
- Financial Controller.
Mechanism of calculating Saudization
The mechanism of calculating Saudization in the accounting profession is explained below;
- Total accountants in a company (20 Expats + 2 Saudis): 22.
- Saudization Rate (22 x 30%) : 6.6 rounded to 7.
- New Saudi accountants to be hired during the grace period: 7 – 2 = 5.
What if the Saudization requirement is not met?
If the 30% required Saudization requirement in the accounting profession is not met by June 11, 2021, the following consequences will have to be faced;
- Employees with the accounting profession would not be able to change Iqama profession.
- No transfer of sponsorship to the company.
- No transfer of sponsorship from the company.
- No renewal of work permit for any employee.
- No new visas.