Will govt reduce dependent fee in 2019, 2020, 2021?

According to the latest news about the dependent fee in Saudi Arabia, the fee will increase from SR 300 in 2019 to SR 400 in and after 2020 and 2021. Before going further, let us understand its calculation;

  • The dependent fee in Saudi Arabia from July 2017 to June 2018 was SR 100 per month.
  • The dependent fee in Saudi Arabia from July 2018 to June 2019 was SR 200 per month.
  • The dependent fee in Saudi Arabia from July 2019 to June 2020 is SR 300 per month.
  • The dependent fee in Saudi Arabia after July 2020 to June 2021 will be SR 400 per month. 
  • The dependent fee in Saudi Arabia after July 2021 will continue to be SR 400 per month.

People often ask if there is any latest news or chance that the government will reduce the dependent fee in Saudi Arabia in 2019, 2020 or after 2021, we are here to answer you. 

Work Permit Levy or Maktab-e-Amal Fee

There is another fee apart from the dependent fee which was approved by the Budget 2017 and implemented since the beginning of 2018 and it is called Maktab al Amal fee.

Every company has to pay SR 400 per month Maktab al Amal fee for every expatriate employee for the year 2018, SR 600 per month per expat employee for the year 2019 and SR 800 per month per foreign worker for the year 2020 while the dependent fee will be paid by the employee himself.

The statement of Labor Minister

Both fees had a negative effect on the economy and landlords at large. The landlords who used to take a heavy amount of rent from the expatriates have to reduce it to ensure the increased occupancy.

In the latest news, the Minister of Labor of Saudi Arabia Ahmed bin Suleiman Al-Rajhi made a statement that there is good news coming in a few days about the dependents fee or Maktab Al Amal fee. His video clip went viral on social media and we are going to share it below.

Would the government reduce the Fee?

After a few days of this announcement, the government made a statement that the Shoura Council has requested the relevant ministries to prepare and submit a proposal to them to keep the dependent fee of 2019, at the same level in and after 2020.

It means that the fee will be kept at SR 300 per month per level for the year 2019 as well as in and after 2020 and 2021. My iqama expiry is in 2 months but I haven't paid the fee so far in expectation of the new changes in the structure of the fee. Recommended: Shoura Council seeks proposal to reduce dependent fee in 2020

As expected, the government has taken a very good step for industrial companies by waiving-off Maktab Amal fee. Now, they just have to pay SR 100 fee per annum as compared to SR 7,200 previously.

If the government freezes the dependent fee for the year 2020 and 2021, it will also freeze the Maktab Amal fee for other industries at the same level.

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