Saudi Arabia

Saudi To Implement Phase 2 of Annual Levy on House Workers From May 11

The Ministry of Human Resources and Social Development (MHRSD) announced the implementation of the second phase of the decision of the Council of Ministers to selectively impose a levy on domestic workers from Thursday, May 11, the Saudi Press Agency reported.

Saudi employers will have to pay an annual fee of SR9600 for each house worker if their number exceeds four while expatriate employers will pay the same amount for each worker in excess of two.

The ministry started applying the first phase of the Cabinet decision to selectively impose an annual levy, amounting to SR9600, on domestic workers from May 22, 2022. The ministry stated that the first phase was applicable to only new house workers, who were recruited during the first year after the issuance of the Cabinet decision, while the second phase will be applicable to both new and existing domestic workers in excess of the exempted number.

According to the decision, taken by the Cabinet on March 8, 2022, 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.

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Source
Saudi Gazette

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