Training is no more Optional in Saudi Arabia

The purpose of implementing training programs for employees in Saudi Arabia is to develop a highly-skilled workforce that can compete in the global economy. The government’s Vision 2030 plan aims to transform Saudi Arabia into a diversified, knowledge-based economy, with a focus on developing human capital and creating job opportunities for the country’s growing population. To achieve this goal, the government has launched several initiatives aimed at developing the skills of the national workforce, including the establishment of sectoral skills councils in partnership with the private sector, the building of national occupational standards for more than 300 professions, and the development of high-level skills for national cadres.

On 3 September 2023, Ministerial Resolution No. 3568, dated 07/01/1445H (corresponding to 25 July 2023), issued by the Minister of the Ministry of Human Resources and Social Development (MHRSD), concerning the disclosure of training data, has now taken effect. This Resolution mandates that entities employing 50 or more individuals must annually report training data on their Qiwa portal, following the accompanying Procedural Guide.

For the year 2023, entities are required to disclose the following information:

1. Number of Trainees: (Saudi and foreign national employees, Students, Graduates, Job seekers)

2. Average Training Hours:

3. Training Costs During the Year:

4. Allocated Budget for Training Activities:

5. Types and Activities of Training for Each Employee Category:

For subsequent years, the disclosure should cover:

1. Number of Trainees: (Saudi and foreign national employees, Students, Graduates, Job seekers)

2. Allocated Budget for Training Activities:

3. Percentage of the Budget Allocated to Training Activities from Employees' Wages:

4. Types and Activities of Training for Each Employee Category:

The disclosed training period should not be less than eight training units for each trainee annually. Various forms of training, such as courses, workshops, lectures, seminars, online training, career guidance programs, on-the-job training, and career turnover/rotation, are acceptable. The number of hours for each type of training varies to complete one training unit. For instance, two hours of lectures and seminars constitute one unit, while four hours of online training make up one unit.

Submission of training data is mandatory through the employer’s Qiwa portal within one month from the end of the Gregorian year, with the deadline set at 31 January each year. Failure to disclose training data within this period may result in fines ranging from SAR 5,000 to SAR 15,000, depending on the number of employees. The fine doubles in case of repeat offenses, and one violation is applied to the non-compliant entity per year.