SAUDI ARABIA – Recent Changes for Foreign Workers

The Ministry of Labour and Social Development (MLSD) has recently made several significant changes to its rules for issuing block visas and work visas, to the “Nitaqat” Saudization system and to the expat levy.

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SAUDI ARABIA – Saudi Companies with Five or Fewer Employees Are Exempt from Expanded Expat Fee – UPDATED

The Ministry of Labour and Social Development has announced that Saudi companies employing five people or fewer are exempt from the new monthly expat levy. Companies employing nine people or fewer must pay the levy for the number of employees exceeding five.

UPDATE

For work permits issued prior to 1 January 2018 and still valid during the year 2018, the Ministry of Labour will send the employer an invoice stating the outstanding amount of expatriate fee payable due to the increased fees for 2018. The outstanding amount must be paid within three months of 1 January 2018. Failure to pay on time may result in penalties on the employer and the employee, at the discretion of the authorities.

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SAUDI ARABIA – Expat Levy Expanded

Effective 1 July 2017, as expected, a monthly levy of SAR 100 (approximately USD 27) must be paid for each foreign national dependent resident in Saudi Arabia.

In addition, from January 2018, the monthly levy on foreign national employees in companies where the number of foreign national employees exceeds the number of Saudi employees will double to SAR 400.

For the first time, a levy of SAR 300 per month will apply to companies where the number of foreign national employees does not exceed the number of Saudi employees.

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SAUDI ARABIA – Expat Levy Expanded

This news alert was prepared using information provided by Proven.

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