For expatriates residing in Saudi Arabia, understanding the fees and procedure for Iqama issuance and renewal is important. While it is mainlythe responsibility of your employer, having a understanding of the process ensures your stay in Saudi Arabia is uninterrupted and legally compliant.
Iqama Issuance and Renewal Fees
The annual cost for renewing your Iqama (residence permit) is SAR 650. The good news is that you can pay this fee in quarterly instalments, providing flexibility for your budget. Here is the breakdown:
- 3 Months: SAR 163
- 6 Months: SAR 325
- 9 Months: SAR 488
- 12 Months: SAR 650
Work Permit Fee (Maktab Amal Fees) or Levy
The work permit fee is connected to your Iqama (residence permit) in Saudi Arabia. Your employer is the one who pays this fee. The amount of the fee depends on how many Saudi citizens work in your company.
For Companies with Less than 50% Saudi Citizen Employees
Expatriate employees in Saudi Arabia are subject to a monthly work permit fee of SAR 800. This fee is payable at a minimum every three months. The work permit fees are as follows:
- 3 Months: SAR 2,400
- 6 Months: SAR 4,800
- 9 Months: SAR 7,200
- 12 Months: SAR 9,600
For Companies with More than 50% Saudi Citizen Employees
- 3 Months: 2,100 Riyals
- 6 Months: 4,200 Riyals
- 9 Months: 6,300 Riyals
- Yearly: 8,400 Riyals
Expat Dependent Fees
If you are sponsoring family members, a dependent fee applies. For each dependent, you will need to pay SAR 400 per month. Here is the breakdown:
- 3 Months: SAR 1,200
- 6 Months: SAR 2,400
- 9 Months: SAR 3,600
- 12 Months: SAR 4,800
Health Insurance Fees
Valid health insurance is mandatory for issuing and renewing an Iqama. It covers both you and your family members during your stay in Saudi Arabia. While employers often provide health insurance.
There may be cases where you need to personally cover your family members, depending on your employment agreement. Costs vary based on coverage, with individual policies typically under SAR 1,000.
Related Articles
Changes in Work Permit Fees for Domestic Workers
The work permit levy now extends to certain domestic workers. For Saudi employers, it applies to the fifth domestic worker, and for foreign employers, it applies to the third domestic worker.
Levy Exemptions for Small Businesses
Saudi Arabia has extended the exemption from work permit fees for an additional three years, now expiring in March 2027. This extension applies to businesses employing nine or fewer people, including the Saudi owner. Detailed exemptions include:
- Small firms with nine or fewer employees registered with the General Organization for Social Insurance (GOSI) can exempt two foreign employees from the levy.
- If an establishment includes at least one Saudi citizen besides the employer, with both registered with GOSI, it can exempt up to four expatriate employees from the levy.
Conditions for Iqama Issuance or Renewal in 2024
To make sure Iqama issuance or renewal is successful, the conditions given below must be completed:
- Pay the Iqama Renewal Fee: The annual cost for renewing your Iqama is SAR 650. You have the flexibility to pay this fee in quarterly instalments.
- Clear Work Permit Fees (Maktab Amal Fees): As an expatriate employee in Saudi Arabia, you are subject to a monthly work permit fee of SAR 800. This fee must be paid at least every three months.
- Settle Traffic Violations: Ensure any outstanding traffic fines are paid before proceeding with the renewal process.
- Valid Health Insurance Policy: Having valid health insurance coverage is mandatory for both you and your family members during your stay in Saudi Arabia. While employers often provide health insurance, it is essential to understand the details based on your employment agreement.
- Dependent Fee (If Applicable): If you are sponsoring family members, a dependent fee of SAR 400 per month per dependent is required.
All the fees mentioned above have already been discussed in this article.
Consequences of Not Renewing Iqama on Time
The consequences of not renewing your Iqama (residence permit) on time in Saudi Arabia can be significant. Let us break it down:
Financial Penalties:
- Your employer or sponsor will face penalties if you fail to renew your Iqama before its expiry date.
- Initially, there is a grace period of 3 days from the date of expiry for renewal.
- If your employer does not renew your Iqama within this grace period, they will be fined 500 Saudi Riyals.
- For repeated violations (not renewing on time), the penalty increases. Second violation: The fine doubles to 1,000 Saudi Riyals.
- Third violation: You, as the expatriate, will be deported from Saudi Arabia, and your employer will be fined 1,000 Saudi Riyals.
Work Disruption and Legal Issues:
- If your Iqama expires, you may have difficulty continuing your employment, accessing services, or even leaving the country.
- Legal complications may arise, affecting your ability to work and reside in Saudi Arabia.
Impact on Employment and Residency:
- Not renewing your Iqama on time can risk your legal status as a resident.
- Employers may hesitate to continue your employment if your Iqama is not valid.
Deportation Risk:
- The most severe consequence is deportation. If you repeatedly fail to renew your Iqama, you risk being sent back to your home country.
Labor Market Regulation:
- The penalties aim to ensure that employers fulfil their responsibility to renew Iqamas promptly.
- Protecting labour rights and maintaining a well-regulated labour market are essential goals.
People Also Ask
What are the Iqama Issuance and Renewal Fees?
- The annual cost for renewing your Iqama is SAR 650, which can be paid in quarterly instalments.
- Work permit fees (Maktab Amal fees) or levy for expatriate employees range from SAR 2,400 for 3 months to SAR 9,600 for 12 months.
- Dependent fees for family members are SAR 400 per month per dependent.
- Valid health insurance is mandatory for Iqama issuance and renewal.
For details, read the complete article.
What Happens if I Do not Renew My Iqama Within the Grace Period?
The grace period for Iqama renewal is typically 90 days, but it is essential to stay updated with the latest regulations.
If you do not renew within this period, your bank accounts may be frozen, and you will not be able to pay for utilities until you present proof of renewal.
Can My Employer Cancel My Iqama?
Yes, your employer has the right to cancel your Iqama at any time.