Saudi Gazette report DAMMAM — The Human Resources Development Fund (Hadaf) is considering doubling its financial support to private companies employing a large number of Saudis and which rank high on the Nitaqat scale in terms of meeting Saudization targets, a senior labor official has said. “Hadaf will pay half of the salaries of Saudi employees in private companies that rank high in the Nitaqat system. If the monthly salary of a Saudi employee is SR10,000, Hadaf will pay SR5,000, Director of the labor office in the Eastern Province Mohammed Al-Manna was quoted by business daily Al-Eqtisadiah as saying. The report said as an incentive to the private companies employing a sufficient number of Saudis, Hadaf would extend its monthly subsidies to four years instead of two. Al-Manna revealed that the Labor Ministry has launched an electronic system to follow up the movement of salaries for Saudis and foreigners to prevent any violations. He said: “The program will enable the ministry to check the commitment of the private sector to paying the salaries of its employees and will prevent illegal remittances of money outside the Kingdom.” Al-Manna warned companies who try to manipulate their Saudization figures that they would face punishments including fines and a cessation of the ministry's services including renewal of iqamas. He revealed the penalties have already been applied to major companies after they were given a month to correct their situations. “It has not yet been applied to small companies and establishments.” Al-Manna said in addition to the electronic follow-up system, the ministry would organize field inspection tours of private companies to check their commitment to Saudization.
