Riyadh: The iqama of foreign workers in Saudi Arabia can be taken and renewed for a period of three months only. A cabinet meeting chaired by King Salman on Tuesday night approved a new law that would allow iqama fees and levies to be paid in installments of three months or six months without being paid in full for a period of one year and only for such periods.
This is a great relief to the private sector in the country. When the iqama fee and levy are combined, a large amount of money is required for a newcomer to the country to take iqama for the first time or to renew the existing one. According to current estimates, the Iqama fee is around 12,000 riyals, including levies and medical insurance. Giving a quarter of this and renewing iqama for only three months can alleviate a huge financial burden for institutions.
Being able to pay in installments without having to spend a lot of money together is a great relief to all companies, big and small. It will also help revive the private sector, which is trying to overcome the effects of the coup. If the service of an employee is sufficient for six months only, the fee for that period is sufficient. You do not have to spend a whole year just paying for it.
However, those on house work visas, such as house drivers and housemaids, are not covered by the law. This is because domestic workers are not covered under the Commercial Labor Act and are exempt from levy.
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