What is the Saudi expat levy?
"Expat levy" is the name most people use for a group of government fees charged on foreign residents in Saudi Arabia. Two of them are the largest:
- The dependent fee, sometimes called the family fee or "family tax". It is a monthly charge for each family member who lives in Saudi Arabia on an expat's sponsorship.
- The expat worker levy, known in Arabic as the "financial compensation" (al-muqabil al-mali). It is a monthly charge that private sector employers pay for each foreign worker.
On top of these, there are smaller fees for the iqama (resident identity card) itself and for the work permit. All of these are usually paid in advance when the iqama is issued or renewed.
The fees were introduced as part of Saudi Arabia's Vision 2030 reforms. Their aims are to raise non-oil revenue and to encourage companies to hire Saudi nationals. For expat families, they are often one of the biggest costs of living in the Kingdom.
Who pays which fee?
| Fee | Normally paid by | Collected through |
|---|---|---|
| Dependent fee | The expat who sponsors the family | Absher / Jawazat, with the dependent iqama |
| Expat worker levy | The employer | Qiwa (MHRSD), with the work permit |
| Work permit fee | The employer | Qiwa |
| Iqama issue or renewal fee | The employer, for workers | Jawazat via Muqeem or Absher Business |
The Saudi Labour Law places the cost of issuing and renewing the iqama and work permit on the employer, along with any fines for late renewal. Employers cannot lawfully pass these costs on to the worker. If your employer deducts the worker levy from your salary, that may break the law and you can raise it with the Ministry of Human Resources and Social Development (MHRSD).
The dependent fee works differently. It is linked to the family members on your sponsorship, so in most cases you pay it yourself. Some employers cover it as a benefit. Check your contract.
Current rates for 2026
We checked the current fee levels against official announcements and major advisory sources. No changes to the dependent fee or the main worker levy rates have been announced for 2026.
| Fee | Monthly | Yearly | Notes |
|---|---|---|---|
| Dependent fee | SAR 400 per dependent | SAR 4,800 | Paid upfront for the iqama period |
| Worker levy – expats more than Saudis | SAR 800 per worker | SAR 9,600 | Most common rate |
| Worker levy – expats equal to or fewer than Saudis | SAR 700 per worker | SAR 8,400 | Lower rate rewards Saudisation |
| Work permit fee | About SAR 8.33 | SAR 100 | Paid with the levy in Qiwa |
| Iqama fee (private sector worker) | About SAR 54.17 | SAR 650 | SAR 600 for domestic workers |
The SAR 400 dependent fee and the SAR 700 / SAR 800 worker levy are the final step of a schedule published in 2017. The work permit and iqama fees above are the figures widely reported by advisers and fee guides. They can change, so confirm them in Qiwa, Muqeem or Absher on the day you pay.
How the fees started
The dependent fee started in July 2017 at SAR 100 per dependent per month. It then rose by SAR 100 each year until it reached SAR 400 in July 2020.
The worker levy started in January 2018. It also rose in steps, with a lower rate for companies where expats did not outnumber Saudis:
| Year | Dependent fee (per month) | Levy: expats ≤ Saudis | Levy: expats > Saudis |
|---|---|---|---|
| 2017 | SAR 100 | – | – |
| 2018 | SAR 200 | SAR 300 | SAR 400 |
| 2019 | SAR 300 | SAR 500 | SAR 600 |
| 2020 onwards | SAR 400 | SAR 700 | SAR 800 |
Since 2020 the rates have stayed the same. The main changes since then have been exemptions, mainly for small businesses and industrial firms.
How to calculate the Saudi expat levy
Dependent fee
Worker levy rate
The rate depends on the whole establishment's headcount. If the number of expat workers is equal to or less than the number of Saudi workers, use SAR 700. Otherwise, use SAR 800.
Billable workers = Expats − Exempt workers
Worker levy = Billable workers × Rate × Months
Iqama and work permit fees
Work permit fee = Expats × SAR 100 × Months ÷ 12
Totals
Yearly total = Monthly total × 12
The calculator applies the industrial exemption by setting the worker levy to zero. It still includes the iqama and work permit fees, because the cancellation covered the levy, not those fees.
Worked examples
You can type each example into the calculator above and get the same numbers.
Example 1: A family with three dependents
Imran works in Riyadh. His wife and two children live with him on his sponsorship. He is renewing the family iqamas for 12 months.
- Dependent fee: 3 × SAR 400 × 12 = SAR 14,400.00
- Monthly equivalent: SAR 1,200.00
Imran pays this amount upfront when he renews. His employer pays his own iqama, levy and work permit fees.
Example 2: Two dependents for six months
Grace's husband and son are on her iqama. She plans to send them home soon, so she renews their iqamas for six months only.
- Dependent fee: 2 × SAR 400 × 6 = SAR 4,800.00
- Yearly equivalent: SAR 9,600.00
Example 3: A company where expats outnumber Saudis
A Jeddah trading company has 10 expat workers and 4 Saudi workers. It is renewing all permits for 12 months.
- Expats (10) are more than Saudis (4), so the rate is SAR 800.
- Worker levy: 10 × 800 × 12 = SAR 96,000.00
- Iqama fees: 10 × 650 = SAR 6,500.00
- Work permit fees: 10 × 100 = SAR 1,000.00
- Total: SAR 103,500.00, or SAR 8,625.00 per month
Example 4: A company with equal numbers
A Dammam clinic has 5 expat staff and 5 Saudi staff.
- Expats are equal to Saudis, so the rate is SAR 700.
- Worker levy: 5 × 700 × 12 = SAR 42,000.00
- Iqama fees: 5 × 650 = SAR 3,250.00
- Work permit fees: 5 × 100 = SAR 500.00
- Total: SAR 45,750.00 per year
Hiring one more Saudi, instead of an expat, would keep the lower rate for every expat worker. This is how the levy encourages Saudisation.
Example 5: A small business with an exemption
Khalid owns a small shop. He works there full time and is registered with GOSI. He employs 3 expat workers and no other Saudi staff, so the business has 4 people in total. Because the owner works full time and is in GOSI, 2 expat workers are exempt. Enter 0 Saudi workers and 2 exempt workers in the calculator.
- Expats (3) are more than Saudi employees (0), so the rate is SAR 800.
- Billable workers: 3 − 2 = 1
- Worker levy: 1 × 800 × 12 = SAR 9,600.00
- Iqama fees: 3 × 650 = SAR 1,950.00
- Work permit fees: 3 × 100 = SAR 300.00
- Total: SAR 11,850.00 per year
Dependent fee by family size
The dependent fee grows quickly with the size of the family. This table shows the cost for common family sizes. The working parent is not counted, because they hold a work iqama and their employer pays their fees.
| Dependents | Example family | Per month | 6 months | 12 months |
|---|---|---|---|---|
| 1 | Spouse only | SAR 400 | SAR 2,400 | SAR 4,800 |
| 2 | Spouse and one child | SAR 800 | SAR 4,800 | SAR 9,600 |
| 3 | Spouse and two children | SAR 1,200 | SAR 7,200 | SAR 14,400 |
| 4 | Spouse and three children | SAR 1,600 | SAR 9,600 | SAR 19,200 |
| 5 | Spouse and four children | SAR 2,000 | SAR 12,000 | SAR 24,000 |
For a family of five on a salary of SAR 8,000 a month, the yearly dependent fee of SAR 19,200 equals about two and a half months of pay. This is why many expat families decide that some members will live in the home country, or plan a move around the renewal date. If you are weighing up the numbers, compare the fee with the extra housing, school and travel costs, not just the fee alone.
Exemptions and special cases
Small establishments
In February 2024 the Saudi Cabinet extended the exemption for small establishments for another three years. It applies to businesses with nine or fewer workers, including the owner. MHRSD explained it like this:
- Up to two expat workers are exempt if the owner works full time in the business and is registered with social insurance (GOSI).
- Up to four expat workers are exempt if, in addition, at least one other full-time Saudi employee is registered with GOSI.
The calculator lets you enter the number of exempt workers, up to four. Check the exact number your business has in Qiwa.
Licensed industrial establishments
Industrial firms had a temporary arrangement from 2019 under which the state covered the levy. On 17 December 2025 the Saudi Cabinet went further and cancelled the expat levy for industrial establishments holding an industrial licence. If your company is one of these, tick the box in the calculator. The other fees, and the dependent fee for workers' families, are not part of that decision.
Domestic workers
Drivers, housemaids, cooks and other household workers are not covered by the business levy. They are managed through the Musaned platform. Since May 2022, a fee of SAR 9,600 per year applies to each domestic worker beyond four for Saudi households, and beyond two for expat households. Their iqama fee is commonly quoted at SAR 600 per year.
Premium Residency holders
People with Saudi Premium Residency are treated differently from normal sponsored expats. Their family members are generally not charged the dependent fee. Check the current terms with the Premium Residency Centre.
GCC nationals
Citizens of other GCC countries do not need an iqama in the same way and are not charged the expat levy or dependent fee.
Newborn children
A baby born in Saudi Arabia to an expat parent needs to be added to the parent's record and given an iqama. The dependent fee then applies from that point, at the same SAR 400 per month.
Final exit and refunds
If a dependent leaves on final exit before the end of the paid period, some families have been able to claim a refund for unused full months. The rules and the process can change, so ask Jawazat or check Absher before you count on a refund.
How and when the fees are paid
Dependent fee
The dependent fee is paid through your bank's SADAD bill payment service, using your iqama number, under the Jawazat dependent fee option. You must pay it before the dependent iqamas can be renewed in Absher. It is paid for the whole renewal period at once.
Worker levy and work permit
Employers see the levy and work permit fees in their Qiwa account when they renew or issue a work permit. The fees for the chosen period are paid together. Renewals can be done for 3, 6, 9 or 12 months. Levy arrears are not split and are charged at the current rate.
Iqama fee
The employer pays the Jawazat iqama fee through SADAD and then renews the iqama in Muqeem or Absher Business. Late renewal leads to a fine, commonly reported as SAR 500 for the first time and SAR 1,000 for the second.
To see how these costs compare with the rest of an employee's package, try our Saudi GOSI Calculator for social insurance contributions and our Saudi End of Service Calculator for end of service benefits.
Common mistakes
- Thinking the worker pays the levy. The levy, work permit and iqama fees for workers are the employer's cost under the law.
- Forgetting the fee is upfront. A 12-month dependent renewal for three people is SAR 14,400 paid at once. Save for it in advance.
- Using the SAR 700 rate without checking the ratio. The lower rate only applies when expats are equal to or fewer than Saudis.
- Counting yourself as a dependent. The working expat pays no dependent fee for themselves. Only the family members on their sponsorship count.
- Assuming all exemptions still apply. Exemptions have end dates. Check Qiwa before you plan your budget.
- Mixing up Hijri and Gregorian dates. Iqama expiry dates on older records may be shown in Hijri. Use our Hijri Date Converter to find the Gregorian date.
Practical tips
- Ask about the dependent fee before you accept a job offer in Saudi Arabia. Some employers pay it, or give a family allowance that helps.
- If money is tight, renewing for a shorter period, such as three or six months, can spread the cost.
- Keep the SADAD payment receipt until the renewal shows as complete in Absher.
- Employers should plan Saudisation and hiring together. One more Saudi hire can move every expat worker to the lower rate.
- Check Qiwa every renewal for the exact fees. The figures shown there are the ones you must pay.
Where to get official help
For the worker levy and work permits, use the Qiwa platform or contact MHRSD. For dependent fees and iqama renewal, use Absher or the General Directorate of Passports (Jawazat). For questions about industrial exemptions, contact the Ministry of Industry and Mineral Resources. If you think your employer has wrongly deducted the levy or iqama fees from your salary, you can file a complaint with MHRSD through its labour complaint channels.
Frequently asked questions
How much is the dependent fee in Saudi Arabia in 2026?
SAR 400 per dependent per month. That is SAR 4,800 per dependent per year. The rate has stayed at this level since July 2020, and no change was announced for 2026.
How much is the expat worker levy?
SAR 800 per expat worker per month where the establishment has more expat workers than Saudi workers. Where expats are equal to or fewer than Saudis, the rate is SAR 700 per month. Yearly, that is SAR 9,600 or SAR 8,400 per worker.
Who pays the expat levy, the employer or the worker?
The worker levy is charged to the employer through Qiwa together with the work permit. The Saudi Labour Law puts the cost of the iqama and work permit, and their renewal, on the employer. The dependent fee is different: it is normally paid by the expat who sponsors the family.
Is the dependent fee paid monthly?
It is set as a monthly rate, but it is paid in advance for the whole period when the iqama is issued or renewed. So if you renew for 12 months, you pay 12 months of the fee at once.
Who counts as a dependent?
Family members on your sponsorship, such as your wife or husband, children and in some cases parents. Each person on your iqama as a dependent is charged separately. Check the exact list on Absher, as rules for older children and other relatives can differ.
Are domestic workers charged the expat levy?
Domestic workers such as drivers and housemaids are handled separately through Musaned. Since 2022, a fee of SAR 9,600 per year applies to each domestic worker beyond four for a Saudi household, or beyond two for an expat household.
Are small businesses exempt from the levy?
Small establishments with nine or fewer workers, including the owner, can get an exemption for up to two expat workers if the owner works full time and is registered with GOSI, or up to four if there is also a full-time Saudi employee registered with GOSI. The Cabinet extended this exemption in 2024 for three years.
Is the levy cancelled for factories?
In December 2025 the Saudi Cabinet cancelled the expat levy for industrial establishments that hold an industrial licence. Other sectors still pay the levy. Check your status with the Ministry of Industry and Mineral Resources and Qiwa.
How much is the iqama renewal fee?
The passports fee for issuing or renewing an iqama for a private sector worker is commonly quoted as SAR 650 per year, or SAR 600 for domestic workers. Shorter renewals are charged pro rata. This is separate from the levy and the work permit fee.
What happens if the iqama is not renewed on time?
A late renewal fine applies. It is commonly reported as SAR 500 for the first offence and SAR 1,000 for the second, with stronger penalties for repeat offences. The employer is responsible for renewing a worker's iqama.
Disclaimer
This calculator gives an estimate for general guidance. It is not legal or tax advice. Government fees, exemptions and their end dates can change at short notice. Always confirm the exact amount in Qiwa, Muqeem or Absher before paying.
Sources and references
Fee schedule 2017–2020 for the dependent fee and expat levy: PwC Middle East – KSA key tax items, 2017 budget. Current levy and dependent fee figures (Q1 2026): Middle East Briefing (Dezan Shira & Associates). Small establishment exemption: Ministry of Human Resources and Social Development (MHRSD) news release. Cancellation of the levy for licensed industrial establishments: Arab News, December 2025. Domestic worker fee: Argaam. Iqama fee and fines are from published fee guides and should be confirmed with the General Directorate of Passports (Jawazat) via Absher.