7 Categories of Expatriates who are exempt from Work Permit Levy (Maktab-al-Amal Fee)

Ministry of Labor of Saudi Arabia increased the Work Permit Levy or Maktab-al-Amal Fee for the expatriates working in Saudi Arabia on 1st Muharram 1434 (November 14, 2012). The Work Permit Levy or Maktab-al-Amal Fee used to be SR 100 before November 14, 2012, per expatriate employee. An additional Work Permit Levy or Maktab-al-Amal Fee of SR 2,400 was imposed on expatriate employees for businesses who maintain less than 50% Saudi employees from November 14, 2012.

Also Read:  Calculation of Work Permit Levy on Expatriate Employees – from SR 2,400 to SR 9,600

In December 2016, with the announcement of the Budget 2017, Saudi Government has introduced a plan to impose Work Permit Levy or Maktab-al-Amal Fee and increase the Work Permit Levy or Maktab-al-Amal Fee gradually. We have explained the calculation of Work Permit Levy or Maktab-al-Amal Fee earlier. We have already explained the calculation of Work Permit Levy or Maktab-al-Amal Fee to show how it will increase from SR 2,400 to SR 9,600 per expatriate worker per annum. However, what many people don’t know is that not all kind of employees come under the umbrella of this fee. Following categories of expatriates are exempt from Work Permit Levy or Maktab-al-Amal Fee.

1-Expatriate employees working in the government sector are not required to pay the Work Permit Levy or Maktab-al-Amal Fee to renew their Iqama. It would be a great comfort for the expatriates who are working in the government sector as they don’t have to pay this heavy chunk of money.

2-All domestic workers are not required to pay their Work Permit Levy or Maktab-al-Amal Fee provided that the profession on their iqama is also a domestic worker.

3-If your mother or father is a Saudi, you should be registered under his or her iqama. In this case, there is no need to pay Work Permit Levy or Maktab-al-Amal Fee.

4-A widow of a Saudi man does not have to pay Work Permit Levy or Maktab-al-Amal Fee as her status of living in Saudi Arabia is based on her deceased husband. The employer does not play any role in renewing her iqama.

5-Expatriate wife or husband of a Saudi Citizen is not required to pay the Work Permit Levy or Maktab-al-Amal Fee.

6-Businesses employing less than 10 employees will be exempt from paying SR 2,400/- Iqama fee on the renewal of Iqama of their 4 employees. However, it is only applicable if Saudi owner is working for his SME Company for the full time. Source: Arab News

7-All the companies who have signed the contracts with the government before Nov 15, 2012, will be reimbursed for the Iqama Fee for the two preceding years as well. This decision will positively impact the large sized companies of Saudi Arabia. Source: Arab News

  • jun

    Good morning steve, my company was renewed my iqama last month july 2016, then i filed exit my company said i will pay the cost of renewal of may iqama. how much do you think the cost of renewal?

  • jibran

    Hi Steve, Myself Jibran I am new to this blog and I find that this blog is so helpful for people like me. So here is my question, today one of my senior colleague said that by the 2nd october 2016 (1st moharram 1438) Iqama fees will be increase to 6000 SR. per year and after incase of such increment employer will going to take half amount of Iqama renew fee charge from us it means every employees have to pay 3000 SR within a year to their employer(KAFIL). I am so confused please let me know is this information is true or if it is true then collecting such half fees by us is legal or illegal.

  • Asif imran

    Hi Steve, Myself imran I am new to this blog and I find that this blog is so helpful for people like me. So here is my question, today one of my senior colleague said that by the 2nd october 2016 (1st moharram 1438) Iqama fees will be increase to 6000 SR. per year and after incase of such increment employer will going to take half amount of Iqama renew fee charge from us it means every employees have to pay 3000 SR within a year to their employer(KAFIL). I am so confused please let me know is this information is true or if it is true then collecting such half fees by us is legal or illegal

  • Muhammad Osman Maan

    Steve please guide me that what is the fee of renewal of iqama as my brother has expired iqama how it would be renewed??? his kafil is not htere as his company had ended up working… reply please

  • sharon lobo

    Dear sir,

    I came saudi on October 2014.Now i am planning for vacation but my company status in yellow.And my iqama expiry date is on Dec 2106.Is it possible to renew my Iqama.

  • Jhanziab Ahmed

    Dear Steve, i want ask my Agent is missing and also i don’t know where is my kafeel office how can i find my kafeel Office

  • Manikandan

    Dear sir,i am a mechanic.I want go vacation. but 2 year not complete. My Kafeel asked give iqama fees then go.I want how much iqama fee.

  • Imran Ali Chaudhry

    I have a query regarding iqama renewal. My Iqama is going to expire on 26 April, 2017.

    Can i get my iqama renewed now? If yes if i apply now will the date of Iqama expiry be one year from now or from 26 April.

    Regards
    Imran

  • Jovieann Villacosta

    Hi mr steve i just want to ask What if my contract is already finish but my iquama was renewed by my company and i want to go exit instead! should i pay for the fee and how much would it be the charge?

  • Rebel Sandwich

    I have really Important question. If anyone can help me in this it would be highly appreciated.

    My
    father is under sponsorship of a company which has 2 employees only.
    The Saudi guy is a friend so he doesn’t take kafalat fee, I just have to
    pay for the rest.

    Now last time I renewed my iqama with my health
    Insurance, paid iqama renewal fee(650), Paid Work permit renewal
    (2500), Paid Muqeem renewal (150) only to get it renwed.

    How ever
    this year, his mandoob(who is the second emplyee) is telling me that I
    need to pay for GOSI fee which is (4800 SR), 2500 SR for work permit
    which I renewed in July for 1 year. It’s January now and he’s saying
    it’s expired? and the muqeem fee of 150 SR. Total 7450 SR?!?!

    What
    I don’t understand is the 4800 SR Fee? What is this? I have never had
    to pay this before nor can I find any new report on this or new that
    it’s increased or whatever.

    Please help me as I think the guy is trying to rip me off.

  • jessica lawrence

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