A unique historical decision issued by King Salman to all expatriates in Saudi Arabia (a golden opportunity)
Other sources also announced that many foreign expatriates returned to 20 jobs within the country, and announced their desire to reduce the financial burden on expatriate workers.
Recently, many sources have announced the return of a large number of foreign expatriates to work in the Kingdom. As part of its endeavor to reduce the financial burden on expatriate workers, the government has implemented a number of measures and amendments that affect the country’s economic and labor laws.
Categories exempted from fees for companions
Based on the Kingdom’s keenness to reduce the financial burden on expatriates, it has exempted some groups from escort fees. These categories include:
- Resident’s wife: The wives of residents are exempted from paying the escort fee.
- Saudi children of non-Saudi parents: These children are exempted from the escort fee.
- Internal worker: Internal workers were exempted from paying escort fees.
- Immigrants from GCC countries: Immigrants from GCC countries have been granted an exemption from the escort fee.
- Companies with less than 5 employees: Companies with fewer than 5 employees have been granted tax exemption.
- Companies with more than 9 employees: In the event that the number of employees in any company exceeds nine, 4 of them are exempted from paying escort fees.
These important decisions were announced during the opening ceremony of the Traders Council in the presence of a number of Saudi businessmen. These decisions aim to regulate and amend expatriate fees, and to ensure fair financial compensation for expatriate workers.
Amendments in the system of financial compensation for expatriate workers
Among the new decisions announced by the Kingdom was the amendment of the financial compensation system for expatriate workers, which is in force in the Kingdom. Previously, the system required a payment of 300-400 SAR per month, but the monthly cost has been raised to 500-600 SAR. Fees this year are expected to range between 700 and 800 Saudi riyals.
These decisions were linked to the number of employees present in the companies, according to what was stated in the National Offset Program. The Kingdom bears all costs due from foreign workers, provided that the work is valid until October 2022.
In addition, the Kingdom bears the costs of licensed industrial establishments for at least 5 years, and this support will continue until 2024.
Employers are also prohibited from keeping documents related to the places of residence of foreign workers, and they will not be allowed to keep insurance policies for employees, and if these documents were kept in the past, this would require the approval of the employer.
New Saudi passport decisions for the year 1444 AH
After the previous decisions, the Saudi Passports Authority made important decisions related to foreigners residing in the Kingdom. Among these decisions:
- Switch jobs: The Saudi Ministry of Labor gives expatriates the opportunity to switch jobs directly, giving them greater opportunities to improve their professional status.
- Cancellation of escort feesIt was announced that the escort fee will stop at a certain limit, and this is good news for many expats and their families.
- Reducing the grace period for violationsThe Ministry of Health has taken a decision to reduce the grace period for paying fines related to the age of the applicant. This means that these violations will be compulsorily collected.
- Depriving employees of compensation: In the event that all warnings given to employees are exhausted and they are fired, they will be deprived of financial compensation.
- Modifications in job localizationThe Ministry decided to cancel the appointment of Saudis only in some specific professional categories, including sales managers, dental consultants, medical and executive secretaries, shopkeepers, accountants, buyers, senior accountants, nurses, dental consultants, doctors, pharmacists, and suppliers.
These decisions aim to achieve the highest level of service for residents and reduce the burden on expatriate foreign workers in the Kingdom of Saudi Arabia.
The recently announced decisions come from Saudi Arabia as part of its efforts to achieve economic sustainability and regulate labor and economic laws in the country. The new system aims to encourage companies to hire more Saudi workers and reduce reliance on expatriate workers. Foreign workers are also encouraged to improve their professional conditions and develop their skills to contribute to the economic development of the Kingdom.
With the implementation of these measures, it is expected to have a positive impact on the Saudi economy and improve the living and professional conditions of citizens and residents alike.