Last updated on January 19th, 2020 at 11:18 am
Every expatriate working in the private sector of Saudi Arabia has to pay the Maktab Amal fee for Iqama renewal. In this article, we have given a Maktab Amal fee calculator to check the fee you need to pay for Iqama renewal for the year 2019, 2020, 2021 and explained all the related rules below.
Maktab Amal Fee Calculator
In order to check the Maktab Amal fee or work permit levy which you need to pay for Iqama renewal, enter your Iqama expiry date in the calculator. The calculator will compute the amount of work permit levy which you need to pay for Iqama renewal. Recommended: How to Check Iqama Expiry Date?
- The Work Permit Levy for 2017 is SR 200/month i.e. SR 2,400/year.
- The Work Permit Fee for 2018 is SR 400/month i.e. SR 4,800/year.
- The Maktab Amal Fee for 2019 is SR 600/month i.e. SR 7,200/year.
- The Maktab Amal Fee for 2020 is SR 800/month i.e. SR 9,600/year.
- Starting from the year 2021, the Maktab Amal fee will remain SR 800/month i.e SR 9,600/year.
Saudization Level and Maktab Amal Fee
The Saudization level has a significant impact on the calculation of the work permit levy. The Saudi government gives a discount of SR 100/month/employee to companies that maintain a 50% or above Saudization level. We have already taken this factor into account in the Maktab Amal fee calculator given above.
For example, a company has 100 employees and 40% of employees of the company are Saudis and 60% are Non-Saudis. In the year starting from January 2020, the company will pay SR 9,600 for its 10% expatriate employees and SR 8,400 for its remaining 50% expatriate employees.
SR 100 Work Permit fee for the Industrial sector
In September 2019, the Saudi cabinet has approved that the Maktab Amal fee for employees working in the Industrial sector will be only SR 100/employee/year for 2019, 2020, 2021, 2022 and 2023. We have already taken this factor into account in the Maktab Amal fee calculator given above.
Consequently, the Saudi government has allocated SR 30 billion to be paid to the Ministry of Labor over the next 5 years on behalf of companies.
Industrial companies are mainly manufacturing companies as the decision is not even implemented in the construction sector.
Reimbursement of work permit levy
During the year 2019, around 350,000 private companies got the reimbursement of the incremental Maktab Amal fee paid for their employees in the year 2018.
As a result, they actually paid only SR 2,400/employee/year to the government as the remaining amount was refunded. A similar reimbursement is expected during the year 2020.
King Salman has taken notice that some of the companies were struggling to pay the fee steadily. King Salman has thereby approved a scheme worth SR 11.5 billion to reimburse these struggling companies.
Moreover, this scheme is only for those Non-Industrial companies that are in the platinum or green nitaqat category for a consistent period of 12 months. The companies with a red nitaqat category would not be able to benefit from the scheme.
The government has started refunding the fee paid during the year 2019 to small and medium-sized companies. – Saudi Gazette
Who is exempt from the Work Permit fee?
There are some categories of expatriate employees who are exempt from paying the Maktab Amal fee for Iqama renewal. We have given details of these categories below;
- Non-Saudi Government employees.
- Domestic Workers.
- Non-Saudi children of a Saudi father or Saudi mother.
- Widow of a Saudi man.
- Non-Saudi spouse of a Saudi national.
- Firms employing not more than 5 people will be exempted from the work permit levy provided that the owner is a full-time employee of the firm. Source: Saudi Gazette
- Firms employing up to 9 foreigners will pay the levy for the number of workers exceeding five, provided that the Saudi owner is working for his SME Company for the full time. Source: Saudi Gazette