Saudi govt reduces Maktab Amal fee from SR 7,200 to SR 100

After the cabinet decision to reduce the Maktab Amal fee for expat employees in the industrial sector for 2019, 2020, 2021, 2022 and 2023, the new fee for all these years will be only SR 100 per worker per annum. The decision has been implemented since 1st of October 2019.

In this regard, the government will pay SR 30 billion in terms of Maktab Amal fee from its own funds for a period of 5 years as the new fee has been determined at SR 100.

It means that the expatriates’ employees who are working in the industrial sector and factories would be required to pay only SR 100 per annum as the Maktab Amal fee for a period of 5 years. It is also important to mention here that currently; 90% workforce of industrial sector employees comprises of Non-Saudis.

Is it applicable to Non-Industrial Sector employees?

However, those working in Non-Industrial sector would still be required to pay this amount at the time of every iqama renewal. The additional Maktab Amal fee was imposed on expat workers in 2018 with the following impact.

  • The Maktab Amal fee for the year 2018 is SR 4,800 per annum
  • The Maktab Amal fee for the year 2019 is SR 7,200 per annum
  • The Maktab Amal fee for the year 2020 is SR 9,600 per annum

However, if the number of Saudi workers in a company is more than 50%, a discount of SR 100 per month is available for each expat worker which means that the fee for the year 2018 is SR 3,600.

5358 Saudi govt. waives Maktab Amal fee for expat factory workers

Saudi Arabia has already reimbursed a major portion of the maktab amal fee collected during the year 2018 in Feb 2019 to those companies which are struggling to pay this amount. Every company had to follow a certain procedure to get the amount reimbursed. Recommended: How to get back the work permit fee?

Is it applicable to the dependent fee?

It is also important to mention here that the government has waived off only Maktab Amal fee which is generally paid by companies not the dependent fee paid by employees themselves. The dependent fee will be continued to be paid in the same way as it was implemented.

Why did the Saudi government take this decision?

The government recently took this decision as part of the short-term urgent solutions to stimulate industrial investments in order to achieve the goals of the Kingdom’s Vision 2030 as well as making the best use of the potentials and laying down the mechanisms to increase the volume of investments and the ensuing exports.

Source: Al Arabiya

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