Monday, March 13, 2017

Cancellation of SR 100 Dependent’s Fee, 2% Increase in Iqama Fee?

There are messages and pictures in circulation on Social Media as well as WhatsApp that the Saudi Government has taken the decision to Cancel SR 100 dependent’s fee and decided to increase Iqama Fee by 2%. Some websites have also published articles on this subject. I have received plenty of messages in the last one week about this issue. People want to know if the government has taken back SR 100 per dependent per month fee for Iqama Renewal and impose 2% additional fee on Iqama. People have confusion in their mind in this regard so I finally decided to write something to clarify this issue.

Let's try to figure out the skeleton of the news in circulation on social media. They are claiming that the fee has increased by 2% on Iqama. The current fee on Iqama Renewal is SR 500 plus SR 150 for HRD fee. Along with that, employers also must pay labor office fee of SR 2,400 per employee per annum. Saudi Government has already announced that they are going to increase this fee from SR 2400 to SR 4,800 from July 2018 so it is confirming that this news is not talking about this fee. 2% of SR 500 Iqama Renewal fee is only SR 10 per annum. If you see the current structure of the fee charged by the Jawazat and other government authorities, the fee of SR 510 for Iqama renewal does not fit with it.

Moreover, canceling SR 1200 per annum per dependent fee in replacement of SR 10 per annum does not make any sense. SR 10 per annum per employee will not generate a good amount of revenue for the country. Saudi Government is focusing on the generation of Non-Oil revenue and this fee is in their plan to reduce reliance on Oil.

Saudi Government announced the dependent’s fee along with the Budget for the year 2017. They have also given a full-fledged plan to impose this fee gradually on dependents. The dependent’s fee will be SR 1200 per dependent per annum from July 2017. SR 2,400 from July 2018, SR 3,600 from July 2019 and SR 4,800 from July 2020. If they have given this comprehensive plan, it does not create any sense of taking it back discreetly.

Last but not the least, this news has not been confirmed by any mainstream newspaper of Saudi Arabia. I can assure that this is a fake news which has no relation with the reality. Please stop dreaming and accept the reality.

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