Saudi Arabia to start implementing second phase 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 issuance of the Cabinet decision, while the second phase will be applicable for 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. 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 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 issuance of the Cabinet decision, while the second phase will be applicable for 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. 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.
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