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Logo of Ministry of Human Resources and Social Development (HRSD)
The Ministry of Human Resources and Social Development (HRSD) provided clarification on the details of the decision to extend the expat levy exemption for small establishments.
The exemption relieves small enterprises with a total workforce of nine employees or less, including the owner, of the obligation to pay the financial consideration for three years.
The exemption is granted for two expatriate employees in an enterprise if the owner is dedicated to working in it and is registered with social insurance.
It is also provided for four expatriate employees in an enterprise if the owner is dedicated to working in it and is registered with social insurance.
The maximum number of expatriates that can be exempt is four if at least one employee, other than the owner, is a Saudi national, dedicated to working in the enterprise, and registered with social insurance.
The ministry explained in a statement that the decision aims to support the growth of small enterprises and ensure their continuity in the labor market.
The Saudi Cabinet, chaired by King Salman, approved on Feb. 20 to extend the decision to exempt small enterprises with nine employees or less, including the owner, from paying financial considerations for three years.
According to the financial consideration guide for work permits, the payment is made for each expatriate employee under the enterprise’s unified number. It is calculated monthly and prorated based on the license period, as illustrated in the following table:
Expat Levy According to License Period (SAR) |
|||
License Period |
Levy when Expats Exceed Saudi Employees |
Levy for Expats vs. Saudi Employees |
License Fees Value |
3 Months |
2,400 |
2,100 |
25 |
6 Months |
4,800 |
4,200 |
50 |
9 Months |
7,200 |
5,600 |
75 |
12 Months |
9,600 |
8,400 |
100 |
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