Employers In The Private Sector Are Exempt From Having To Pay Late Fees
Category: Saudi Arabia

The Ministry of Human Resources and Social Development has exempted private sector companies and establishments from paying government fees on behalf of workers who transfer services to these facilities. As Okaz/Saudi Gazette has learned, the new rule will apply to workers whose services are being transferred from June 9.

In line with the new decision, the employer or establishment where the employee seeks transfer of service must pay the outstanding government dues, including the work permit fee, expatriate fee (financial compensation), and fines for the delayed renewal of residency permit (iqama). The ministry's Qiwa platform has begun charging workers' previous employers with these fees.

According to Qiwa sources, the new decision will not apply to workers whose services were transferred before June 9. As a result, new enterprises will be able to operate without unexpected financial obligations, which will ensure them fair competition with other businesses, and will not expose them to financial difficulties. Under the previous mechanism, establishments that wish to transfer the service of workers were required to pay the fees for work permits, expatriate levy and fines for the delay in renewing the iqama.

The number of private sector establishments in the Kingdom reached 773,175 at the end of the first quarter of 2022. About 6.61 million male and female workers in these establishments are not Saudi citizens and are covered by the General Organization for Social Insurance (GOSI).

Private sector establishments that employ more foreigners than Saudis are required to pay an annual fee of SR9600 (SR800 per month) for each foreign worker. A few months ago, the government introduced a new system of split payments for government fees on a quarterly, half-yearly, and three-quarters basis instead of the annual payment for renewals of work permits and iqama.



17 Jun, 2022 0 276
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