The Iqama Renewal Fees are an amount that every sponsor will have to pay to renew the work permit in Saudi Arabia. Likewise, you must do the processes in advance to avoid fines related to this procedure. In addition, employees should be aware of the payment of fees for their dependents as this will not be an obligation for the employer.
In this article, you will understand what Iqama is, how to renew it, and what fee the employer must pay. Also, you will know how you can pay them and the methods to do so, and other aspects of the document.
What is Iqama?
The government of Saudi Arabia maintains strict regulations in terms of labor and immigration policies outlined in the Labor Law. Likewise, if you are a foreigner and want to work in the country, you must find a local sponsor who is usually the employer. Thus, the employer will act as a mediator to obtain the work permit and the Iqama card or residence card.
Similarly, when you already have the employment contract and the necessary documentation, you will be able to work legally and live in the Kingdom. Moreover, the Iqama and the work permit are valid for the duration of the employment contract from several months to 1 year. Therefore, you will need to renew and pay Saudi Iqama fees before the validity period ends.
Iqama renewal fees for 2023
The types of Iqama renewal fees applied in the United Arab Emirates are as follows:
MOI Iqama Issuance and Renewal Fees 2023
The general fee for issuing or renewing the Iqama card is SAR 650. However, according to the new Iqama rules in Saudi Arabia, employers will be able to pay the full amount of the fee in installments. In the same way, the said installments can be set for the desired time as you will see below:
- The fee for one year of validity is SAR 650.
- Rate for 3 months of validity is SAR163.
- The fee for 6 months of Validity is SAR 325.
- The rate for 9 months of validity is SAR 488.
Work Permit Fee or Maktab Amal Fees 2023
As an employer, you will have to pay these types of labour Iqama fees in Saudi Arabia Maktab Amal. Likewise, according to the law, you must pay the fees monthly for at least 3 continuous months. Additionally, the employer must be responsible for paying the cost of this work permit. Below is the structure of the Maktab Amal rate for this year:
- The 3-month fee is SAR 2,400.
- A 6-month fee is SAR 4,800.
- The 9-month Fee is SAR 7,200.
- The Fee for 1 year is SAR 9,600.
Expat Dependent Fees 2023
Any foreigner who acts as a sponsor for a dependent in the country must pay the Iqama renewal fees for each dependent. Likewise, the fee that must be paid monthly for each one is SAR 400. However, the employer or sponsor may make payments every 3 months as follows:
- 3-month fee for SAR 1,200.
- 6-month fee for SAR 2,400.
- 9-month fee for SAR 3,600.
- 12-month fee for SAR 4,800.
Iqama Renewal Cost Calculator
Payment Iqama renewal fees have a process that can get complicated as it depends on the number of months required for renewal. Likewise, it will depend on the number of dependents you are sponsoring. Also, keep in mind that the rate is the same for all foreigners who require renewal.
In the same way, the applicable formula for calculating the total renewal fee is: the duration of the Iqama plus the renewal of the work permit together with the number of dependents. For example, foreigners who want to renew their work permit or Iqama for 3 months without any dependent, must pay the following fee:
- Iqama fee for SAR 163.
- SAR 2400 for the work permit.
Therefore, the total amount will be SAR 2,563 for the three months. In contrast, if you have a dependent, you must add SAR 1,200 and the total would be SAR 3,763. Also, note that this cost estimate will not include health insurance costs.
How much does it cost to get a work permit for household helpers?
According to the new rules for Iqama renewal 2023 for domestic employers, the will depend on the number of employees. Likewise, Saudi citizens will pay the fee from the fifth domestic worker they hire and those after them. On the other hand, if you are a foreigner, you will pay the rate starting with the third domestic employee and for those hired later.
Consequently, if the employer is a resident of Saudi Arabia, he or she will not pay work permit fees for the four domestic employees hired. In contrast, the foreign employer will not pay the tax for the first two domestic employees he/she hires.
Payment of Iqama tax in Saudi Arabia
In addition to the Iqama Renewal Fees and issuance fees, there is a tax for foreigners to obtain a work permit. Therefore, the fee to pay monthly for the work permit is SAR 800. Likewise, if you are a foreign worker who has relatives dependent on the Iqama, you will have to pay a fee of SAR 400 per dependent.
Furthermore, the employer will decide whether to pay the fee or not because there is no provision in the law that forces him to pay. On the other hand, a sponsoring employer must pay the fine for a lost or expired Iqama of the employee.
Exemptions from Taxes for Small Businesses
With the appearance of new iqama rules in Saudi Arabia, small businesses get a tax exemption. Hence, if the company has less than 9 workers and among them one or more Saudi workers, the business will obtain an exemption. Therefore, with this exemption obtained, you will be able to hire up to 2 expatriate professional workers for your business.
Additionally, if you employ any additional Saudi resident citizens, the exemption will increase to cover up to 4 foreign workers.
Iqama Renewal Process in Saudi Arabia
Make sure you are well informed about the Iqama renewal process as this requirement is common. Also, find out how to renew at no cost for 3 months and the applicable rates for this. Likewise, according to the new rules, foreign sponsors with dependents must pay taxes during the Iqama renewal process.
Thus, to renew Iqama it is important to comply with the requirements and steps necessary to do so:
Requirements for the renewal of the Iqama
The requirements to renew the Iqama if you are a foreigner are the following:
- Pay Iqama renewal fees.
- Pay the work permit fee.
- Settle traffic fines, if applicable, before proceeding with the renewal.
- Own a valid health insurance policy.
- If applicable, pay the cost of the dependent fee.
To determine the total Iqama renewal fees 2023, check your ID card to make sure you have no outstanding fines. Additionally, you will need this information for the accurate calculation of the rate. Also, when you have passed all the requirements, you can start the Iqama renewal process.
Whose responsibility is it for the Iqama renewal?
The responsibility for renewing the Iqama and paying the Iqama renewal fees of employees lies with the employer only. In addition, it is the employer who will cover all fee expenses generated by the renewal. Thus, the worker will have to fill out an application form or cancel the renewal themselves.
However, they will have to pay a dependent tax for each sponsorship they make. Under Saudi labor regulations, the employer cannot refuse to cover Iqama renewal fees. Consequently, an employee can file a formal complaint for this and other work misconduct by the employer.
Detailed steps for Iqama renewal
With the introduction of online processes to renew the Iqama of employees, it is now easier to do it. Likewise, an employer can renew the Iqama up to 6 months in advance even if the employee is outside the country. Below are details of the renewal application process so that you can renew the Iqama of the workers:
- Head over to the official Muqeem site.
- If the portal is in Arabic by default, you can change the language to English by clicking the icon at the top.
- To log in to the portal use your employer credentials.
- Then, select ELECTRONIC TRANSACTIONS.
- Now click on IQAMA RENEWAL.
- Next, your cell phone will receive a security code that you must enter.
- Enter the Iqama number of the worker.
- Choose the duration of Iqama which are usually 3, 6, 9, or 12 months.
- To start the renewal process, select SUBMIT.
- Once you finish the process, the Iqama will automatically renew for the chosen duration.
Complications caused by the late renewal of Iqama
It is recommended that you remember to renew the Iqama at least 3 days before its expiration date. Otherwise, you will receive fines that will increase as more days pass after the expiration date of the document. The structure for this is as follows:
- Late renewal for the first time, the payment is SAR 500.
- Late renewal for the second time is for SAR 1,000.
- If the late renewal is for the third time, the employee may face deportation.
Thus, if you want to avoid penalties, you must go to the Jawazat office to pay the late Iqama renewal fee and apply. However, if a foreign employee requests to leave the country, he/she must ask the employer to cancel the work permit and residence permit.
Therefore, it is advisable that, as an employer, you do not delay the cancellation process to avoid complications; otherwise, you will need to seek external support.
How to check Iqama renewal fees paid
If you want to check the status of your paid Iqama renewal fees, go to your Absher account and follow the 3 steps:
- Go to the bottom of the page where it says FUNDS AVAILABLE FOR PUBLIC CONSULTATION.
- Enter the Iqama Number.
- Enter the captcha code for the image.
Therefore, when you finish these steps, if you have paid the fee, it will appear in PASSPORT DEPOSIT SR 650.
How to pay Iqama renewal fees online
You can make payments to renew Iqama using the Iqama fee calculator. In addition, the total for renewal with built-in insurance and other costs is SR 10,750. Below is how to pay Iqama renewal fees in detail:
Iqama renewal payment online using SNB Bank, or Al Ahli Bank
- Download the SNB App.
- Log in to your Internet banking account.
- Go to MENU.
- Then, click on SADAD.
- Choose GOVERNMENT PAYMENTS.
- Pass the biller or Control.
- Click on service: RENEW IQAMA.
- Place in beneficiary: Not registered.
- Enter Iqama ID: Iqama number.
- Set the Duration of the Iqama: 3, 6, 9, or 12 months.
Then, if the name of the foreign worker and the fees are correct, select the CONTINUE button to pay the fee.
Payment of Iqama through Al Rajhi Bank
You can pay Iqama renewal fees online through Al Rajhi Bank, with these simple steps:
- Download the App on PlayStore or iTunes.
- Already in the application, log in to the Internet banking account.
- Then, choose the option PAYMENTS.
- Select GOVERNMENT PAYMENT.
- Press one click on ALIEN CONTROL.
- Request Type: Renew Iqama.
Following to this process, enter the following details:
- In Transaction Type: Payment.
- In Iqama ID: Iqama number.
- Iqama Rate Duration: 3, 6, 9, or 12 months.
Same as at the end of the previous method, just verify that the employee name and rate cost are correct and click on COMMIT. In this way, you will make the payment of the renewal fee online.
Consequently, when you know how to handle Iqama renewal fees online, it will be easier for you to do the paperwork. In addition, always keep an eye on the renewal status so that you can anticipate any inconvenience. Nevertheless, if you have questions, our professional staff is trained to respond on time, just contact us.