Saudi Arabia to apply annual levy on house workers

Jakarta (Indonesia Window) – Saudi Arabia’s Ministry of Human Resources and Social Development has announced that the Council of Ministers on Tuesday (March 8) decided to selectively impose a levy on house workers.

Saudi employers will have to pay an annual fee of 9,600 Saudi riyal (about 2,558 U.S. dollars) for each house worker if their number exceeds four while expatriate employers will pay the same amount for each worker in excess of two.

In other words, a Saudi employer needs to pay the annual fee if he hires a fifth domestic worker while the expatriate employer will pay the same fee in the event of hiring a third worker. The fee will be applicable for every additional worker hired by the same employer.

However, there will be an exemption on humanitarian grounds. For example, workers hired to give medical care to a family member or to take care of people with special needs will be exempted from the payment in accordance with certain terms and conditions formulated by the committee constituted for that purpose.

The ministry noted that only a limited segment of Saudi and expatriate employers will be affected by this decision.

The fee for domestic workers will come into force in two phases. The first phase will be effective from May 22, 2022 (Shawwal 21, 1443) for new recruits. The second phase will come into force from May 11, 2023 (Shawwal 21, 1444) for both new and existing domestic workers in excess of the exempted number, the ministry said.

Source: Saudi Gazette

Reporting by Indonesia Window