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Human Resources Development Fund
Annual Report 2019

Engagement and impact

Providing support for recruitment and training for Saudization of the private sector

Employment support programmes

These programmes and services are aimed at increasing the employment opportunities of individuals to match the needs of the labour market, increasing Saudization, and supporting their continuation on the job.

Upskilling programme

It aims to support the employment of researchers and job seekers in the private sector and raise their skills while on the job. The programme is entitled to additional support in the following cases: Female employment, employment of persons with disabilities, employment in small villages and towns, employment in small and medium enterprises, and employment in critical occupations.

The Fund provides support with a subsidy of 30% of the salary for the first year. The percentage is reduced to 20% for the second year and 10% for the third year. The minimum wage for the subsidy is SAR 4,000 and the maximum wage is SAR 15,000.

The National Job-Seeker Support Programme (Hafiz)

This programme supports job seekers to find appropriate and sustainable jobs and provide them with the necessary skills and resources in order to join the labour market. It consists of the Hafiz Searching for Employment Programme and the Hafiz Difficulty Finding Employment Programme. Each programme targets a certain segment of job seekers according to certain eligibility requirements for receiving benefits.

Hafiz Searching for employment programme

The Hafiz searching for employment programme provides a monthly financial assistance of up to SAR 2,000, targeting young job seekers between 20-35 years who fulfil the subsidy eligibility requirements.

Hafiz Difficulty in finding employment programme

This programme provides financial incentives for those seeking employment with a starting with an amount of
SAR 1,500 per month for the first four months, then
SAR 1,250 for the second four months, then SAR 1,000 for the last four months. The program targets job seekers who are over the age of 35 up to 60 years.

Total recruitments through the Hafiz programmes

Job commitment bonus

This programme aims to provide financial rewards for job seekers registered in the Hafiz programmes as a form of incentive to motivate them to find employment and settle in it. The programme offers financial rewards of up to SAR 24,000 paid in three or four instalments up to 24 months since the date of commencement. The beneficiary is obliged to remain with the same employer for that period of time. This programme was discontinued in January 2018.

Full-time subsidy programme

This programme aims to support the increase of Saudization levels in private sector establishments by contributing 20% of new female employees’ monthly salary calculated according to Saudization growth and 15% of new male employees’ monthly salary calculated according to Saudization growth. The total beneficiaries reached 64,582. This programme discontinued in September 2019.

Part-time subsidy programme

This programme aims at supporting the growth of Saudization in private sector establishments and activating the mechanism of part-time employment. HRDF contributes SAR 300 to private sector companies as a percentage of the 1,500 social insurance of new employees. This subsidy is credited directly to the account of the General Organization for Social Insurance on a monthly basis. The programme was discontinued in September
of 2019.

Freelance subsidy programme

The Freelance subsidy programme offered by the Human Resources Development Fund aims to provide social protection for entrepreneurs and encourage self-employment. The number of beneficiaries of the programme for the year 2019 were 179 males and 132 females. The programme has been discontinued as of May 2018, although support continues to be disbursed to existing beneficiaries.

Tele-work programme

This programme is aimed at providing Saudi women job seekers and people with disabilities to connect with employers. Job seekers given three options to either work from home, through remote job centres or, rehabilitation centres. The programme was discontinued in October 2017.

Direct employment subsidy programme

This programme aims at recruiting job seekers in private sector establishments who wish to employ male and female job seekers by providing salary up to 50% and not exceeding SAR 2,000 per month for the period of support (24 months). The programme was discontinued in September 2017.

Additional wage support

This programme aims to stimulate enterprises to enable Saudi job seekers to join the opportunities available in the private sector. The programme offers financial support for recruitment of Saudi nationals in facilities classified in the platinum and green ranges of Nitaqat programme. A business entity can enrol a maximum of 20% (in the platinum range) and 15% (In the green range) of its Saudi employees in the additional support programme provided that the beneficiaries are qualified according to the eligibility requirements of a candidate. The programme stopped taking support applications in October 2017.

Tawafuq Employment of persons with disabilities programme

This programme supports and enables job seekers with disabilities to be employed in the private sector. The core principles of the programme are right to equal opportunity, inclusion, skills, disability confidence, and services. These principles are applied by adopting standards to achieve inclusiveness and to develop policies, procedures and development tools for on-the-ground implementation and job training. The programme monitors and document information about its participants.

Subsidising the wage of dialysis days

This programme aims to motivate private sector companies to employ renal failure patients and help them continue in their jobs in order to achieve job stability, provided that HRDF compensates these companies for the wage of leave taken by such employees in order to undergo hemodialysis. The total number of beneficiaries reached 6 in 2019.

Teachers subsidy programme in private schools

This programme is aimed at improving the working conditions and to increase the functional ability of male and female teachers in private and foreign schools. HRDF supports this programme through financial means by fulfilling the minimum wage requirement of SAR 5,000 and a transportation allowance of SAR 600. It was decided by the Supreme Decree No. (47632) dated 10/04/1437H, which stipulated the duration of the support programme is five years, and accordingly it has been suspended. The programme stopped taking support applications in September 2017. The total beneficiaries of the programme for 2019 is 17,720.

Women’s work support programmes (Feminisation of shops and feminisation of factories programmes)

The objective of this programme is to increase the opportunities for women to work in private sector establishments in line with their qualifications as per the needs of the labour market and according to the women employment regulation decisions issued by the Ministry of Human Resources and Social Development through a unified recruitment and training support mechanism for up to three years in accordance with the specified controls. The programme stopped taking support applications in October 2017. However, the Fund continues to support those who joined prior to its discontinuation. In 2019, there were 1,113 beneficiaries from the feminisation of shops programme while there were 622 beneficiaries of the feminisation of factories programme.

Small enterprise owners support

This programme is aimed at supporting and encouraging Saudi nationals who operate small businesses. Through the programme, financial support is provided for the management of these small businesses. The programme stopped taking support applications since the end of 2018. However, the Fund continues to support those who joined prior to its discontinuation.