How To Reimburse Maktab Amal Or Work Permit Fee
2019-May-26
In December 2016, with the announcement of the Budget 2017, the Saudi Government has introduced a plan to impose dependent’s fee and increase the Work Permit Levy or Maktab Amal Fee gradually. As a result, the maktab amal fee to renew iqama for the year 2019 is SR 7,200 per annum.
The Maktab Amal Fee waiver policy
As everyone knows, it put a huge strain on companies operating in the private sector as they had to pay a huge amount of maktab amal fee to the government. In order to facilitate these companies, the government of Saudi Arabia introduced the maktab amal fee waiver policy for the year 2017-2018.
The maktab amal fee waiver policy for the year 2017-2018 has been announced and it is now being speculated that about 350,000 private companies of Saudi Arabia would benefit from it.
Ahmed Bin Suleiman, who is a minister at Labor Ministry, King Salman has taken notice that some of the companies were struggling to pay the fee steadily. King Salman has thereby approved a scheme worth SR 11.5 billion to reimburse these struggling companies.
When will the scheme start work?
Many companies have already received the incremental maktab amal fee they paid for the year 2018 in the first quarter of the year 2019.
This new scheme is only for those companies who are in the platinum or green nitaqat category for a consistent period of 12 months. The companies with yellow or red nitaqat category would not be able to benefit from the scheme.
Who is the real victim of the increase maktab amal fee?
As you can see that sponsors are getting back the maktab amal fee they paid for the year 20018, so ultimately there will be no expense as the amount is going to be reimbursed. The scheme will hit those sponsors who are in Red and Yellow category.
Moreover, the increased Maktab Amal fee will also affect those expatriates who have been living in Saudi Arabia on Azad Visa as they pay for their maktab amal fee themselves.
Even if their sponsor gets it back from the government, he is never going to pay it back to the employees. Therefore, they are the real victims of the increased maktab amal fee.
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