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].
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