HRSD Ministry updates domestic labor quota for HR firms

Logo of Ministry of Human Resources and Social Development

The Ministry of Human Resources and Social Development announced updating standards for the quota of domestic labor for HR companies, pursuant to its decision issued on Rajab 6, 1446 AH.

The decision is marked by its reliance on companies' performance and their ability to meet customer and market needs, by replacing fixed the domestic labor ratios with variable ones that depend on the company's capacity and expansion plans, the ministry explained in a statement today.

Moreover, this change is a positive step for HR companies, as it enables them to focus on raising the quality of their services while meeting the needs of their customers. This shift in ratios gives companies greater flexibility to boost their business and services, it added.

The Ministry also indicated that the decision took into account the focus on quality in performance and enhancing the role of companies in regulating the domestic labor market, as these services provided to individual employers vary according to the offered packages, whether by providing services on an hourly basis or through short and long-term contracts.

According to the Ministry, the decision entered into force on January 5, 2025.