Executive Summary
Effective January 2018, employers in Saudi Arabia will be subject to a new monthly fee for each foreign employee under their sponsorship. The levy must be paid in addition to the standard recruitment fees and will increase annually.
The situation
New fee to hire foreign workers.
A closer look
Effective January 2018, employers in Saudi Arabia will be subject to a monthly fee for each foreign employee. The amount of the fee will depend on whether the employer has more foreign workers than Saudi workers.
Fee schedule
Following monthly fees will have to be paid by employers who hire foreign workers:
The levy must be paid in addition to the standard recruitment fees and will increase by SAR 200 every year, reaching SAR 700 and SAR 800 per month by 2020.
Background
Currently, companies in Saudi Arabia are subject to a monthly fee of SAR 200 per every foreign worker, but only if the total number of Saudi employees is less than the total number of foreign employees.
Consequences for employers
Employers in Saudi Arabia can expect increases in overall operation costs due to this new fee.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Explore more at Fragomen
Media mentions
Practice Leader Colm Collins explains how Ireland's employment permit updates can help employers address workforce shortages while strengthening the country's ability to attract global talent.
Blog post
Senior Associate Arta Djahanschiri and Associate Iris Barthel discuss how EU-Turkey Association Law, including Association Council Decision No. 1/80, can provide Turkish employees and their family members in Germany with residence and labor market rights that may extend beyond protections available under the German Residence Act.
Media mentions
Partner Marius Tollenaere and Associate Jamela Sharrock examine how employers in Germany can strengthen immigration compliance by embedding it into every stage of the employment lifecycle.
Podcast
In this episode of The Immigration Conversation, Partner Chad Blocker, Senior Counsel Mitchell Wexler and Associate Alex Kim discuss what prospective EB-5 applicants should know now, including source-of-funds documentation, project selection, concurrent filing, retrogression and upcoming program deadlines.
Blog post
In this blog, Partner Jo Antoons and Senior Manager Marina Ocariz discuss the EU’s provisional agreement on revised social security coordination rules and what employers should know about the expected changes to A1 certificate requirements, posted worker rules and short-term cross-border work compliance.
Blog post
In this blog, Partner Rahul Soni explains the EB-5 grandfathering provisions under the EB-5 Reform and Integrity Act of 2022 and why prospective investors should consider filing before the September 30, 2026 deadline to help preserve statutory protections and reduce exposure to future program uncertainty.
Video
In this video, Practice Leader Kate Praphakornphiphat explains the key requirements, documents, fees and processing time for a Thailand tourist visa, as well as stay duration and extension options for short-term travel.
Fragomen news
Fragomen and Talent Beyond Boundaries announce that they will jointly serve as co-chairs of the Global Task Force on Refugee Labour Mobility for a two-year term beginning in June 2026.
Blog post
In this blog, Manager Gillian Gibbons and Immigration Consultants Gemma Oliver and Larna Kate Hadfield examine how Barnsley’s designation as the UK’s first government-backed Tech Town reflects wider AI and digital growth across the North of England, and why immigration strategy will be critical for employers seeking to access the global talent needed to support regional innovation.
Media mentions
In this Hong Kong Business article, Managing Director Magdalene Tennant discusses Hong Kong’s recent decision to allow employment and dependent visa renewal applications to be filed up to three months before expiry, a change intended to reduce the risk of work disruptions and provide employers with greater flexibility in managing foreign talent.
Media mentions
In this article published by Professional Engineering, Senior Manager Nadine Barnole examines how UK engineering employers can continue to access international talent amid growing skills shortages and a rapidly evolving immigration landscape.
Media mentions
In this Times Brasil CNBC Real Tech interview, Partner Diana Quintas discusses Brazil’s recent visa exemption for Chinese nationals, what it signals for Brazil-China mobility and how technology is helping support more efficient cross-border movement.
Media mentions
Practice Leader Colm Collins explains how Ireland's employment permit updates can help employers address workforce shortages while strengthening the country's ability to attract global talent.
Blog post
Senior Associate Arta Djahanschiri and Associate Iris Barthel discuss how EU-Turkey Association Law, including Association Council Decision No. 1/80, can provide Turkish employees and their family members in Germany with residence and labor market rights that may extend beyond protections available under the German Residence Act.
Media mentions
Partner Marius Tollenaere and Associate Jamela Sharrock examine how employers in Germany can strengthen immigration compliance by embedding it into every stage of the employment lifecycle.
Podcast
In this episode of The Immigration Conversation, Partner Chad Blocker, Senior Counsel Mitchell Wexler and Associate Alex Kim discuss what prospective EB-5 applicants should know now, including source-of-funds documentation, project selection, concurrent filing, retrogression and upcoming program deadlines.
Blog post
In this blog, Partner Jo Antoons and Senior Manager Marina Ocariz discuss the EU’s provisional agreement on revised social security coordination rules and what employers should know about the expected changes to A1 certificate requirements, posted worker rules and short-term cross-border work compliance.
Blog post
In this blog, Partner Rahul Soni explains the EB-5 grandfathering provisions under the EB-5 Reform and Integrity Act of 2022 and why prospective investors should consider filing before the September 30, 2026 deadline to help preserve statutory protections and reduce exposure to future program uncertainty.
Video
In this video, Practice Leader Kate Praphakornphiphat explains the key requirements, documents, fees and processing time for a Thailand tourist visa, as well as stay duration and extension options for short-term travel.
Fragomen news
Fragomen and Talent Beyond Boundaries announce that they will jointly serve as co-chairs of the Global Task Force on Refugee Labour Mobility for a two-year term beginning in June 2026.
Blog post
In this blog, Manager Gillian Gibbons and Immigration Consultants Gemma Oliver and Larna Kate Hadfield examine how Barnsley’s designation as the UK’s first government-backed Tech Town reflects wider AI and digital growth across the North of England, and why immigration strategy will be critical for employers seeking to access the global talent needed to support regional innovation.
Media mentions
In this Hong Kong Business article, Managing Director Magdalene Tennant discusses Hong Kong’s recent decision to allow employment and dependent visa renewal applications to be filed up to three months before expiry, a change intended to reduce the risk of work disruptions and provide employers with greater flexibility in managing foreign talent.
Media mentions
In this article published by Professional Engineering, Senior Manager Nadine Barnole examines how UK engineering employers can continue to access international talent amid growing skills shortages and a rapidly evolving immigration landscape.
Media mentions
In this Times Brasil CNBC Real Tech interview, Partner Diana Quintas discusses Brazil’s recent visa exemption for Chinese nationals, what it signals for Brazil-China mobility and how technology is helping support more efficient cross-border movement.
