Please see below a roundup of other developments in the Kingdom
in relation to the National Budget and Workforce
National Budget introduces fees for dependants
Within its National Budget announced in January 2017, KSA
introduced increased visa fees for foreign nationals (where
bilateral agreements are not in place) and also announced new fees
payable by expatriate workers who sponsor their dependants to
reside in the Kingdom. The Government's aim is to increase
revenues generated through fees as these currently account for only
17% of Government revenues whilst the majority of G20 countries
generate over 70% of their revenues through fees.
These fees will start to be levied from July 2017 and increase
on an incremental basis as follows:
From July 2017 the expatriates will
have to pay SAR 100 every month for each dependant.
In July 2018 the expatriates will
have to pay SAR 200 every month for each dependant.
In July 2019 the expatriates will
have to pay SAR 300 every month for each dependant.
In July 2020 the expatriates will
have to pay SAR 400 every month for each dependant.
These fees will be payable at the time the residency visas
(Iqamas) are renewed and are payable by the non KSA national
employee sponsoring dependants and not his employing company.
Employers remain liable (in accordance with article 40(1) of the
KSA Labour Law (Royal Decree No D/51) dared 23/8/1426 AH as amended
by Royal Decree No D/24 dated 12/5/1434 AH) for payment of all fees
associated with employee work and residency authorisations. Such
costs include the costs of recruitment, fees for issuance and
renewal of his residency and work permits, any delay fines,
professional title changes, exit and re-entry visa fees as well as
repatriation tickets on termination of employment.
Workforce Nationalisation: Saudisation
As many of our readers will know, weighted Nitiqat was due to be
implemented on 12 December 2016 but was postponed. The new date for
implementation has not yet been published and in the meantime,
employers are advised to consider how the potential weighting
criteria would affect their ability to meet their designated
In the meantime, the Ministry of Labour and Social Affairs
launched the citizenship account programme in January 2017 which
provides for Saudi citizens with dependants to apply for assistance
by way of additional allowances payable through the programme to
supplement their incomes.
Finally, in an interesting development, the Ministry of Labour
has now published what effectively amounts to job descriptions for
each of the reserved roles for Saudi nationals and stated that it
will examine the actual role performed by any non KSA national to
see if they are effectively doing a reserved role under a different
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