Saudi banks start updating payments' system for 3-month renewal of iqamas

RIYADH: Saudi banks have started updating their government payments system for the issuance and renewal of residency permits (iqamas) that are linked to work permits for a minimum period of three months.

The payments of iqama fee can be made on a quarterly or half-yearly basis following the recently updated government payments system.

The updation will facilitate the completion of procedures for the issuance and renewal of iqamas for the required period through the online platforms of Absher Business, Muqeem, and Qiwa under the Ministry of Human Resources and Social Development.

Following the recent amendments in the government payment system, Saudi banks will accept the payment of the fee for the work permit by the employer for a minimum period of three months or multiples of six months, nine months or a whole year.

However, employers will not be allowed to make payment for the issuance and renewal of iqama of domestic workers and the like on a quarterly basis because their iqamas do not involve work permits, Saudi Gazette reported.

The issuance and renewal of iqama are linked to work permits. Employers shall make payment of the expatriate fee (financial compensation) for the renewal of the work permit and which has amounted to SR800 per month and SR9,600 in a year. Expatriates who have dependents shall have to pay SR400 per month for each dependent.

Small enterprises with nine or less workers including the full-time Saudi employer will be exempted from the payment of the expatriate fee for two workers. The number of workers exempted from the payment of fee will be raised to four if the workers include one Saudi citizen in addition to the full-time employer.

The President of the Federation of Saudi Chambers Ajlan Al-Ajlan recently announced the start of implementing the government decision to allow issuance and renewal of iqama with splitting up of payment of fee, with a minimum period of three months.

He said that this decision is a big relief and support for the business sector, especially for small and medium enterprises and startups.

It is noteworthy that the Council of Ministers on January 26 this year approved the issuance and renewal of residency permits (Iqamas) linked to work permits for a minimum period of three months.

The move, however, exempted domestic workers and those employed in similar professions.

The Ministry of Human Resources and Social Development had unveiled earlier its plan to allow the payment of the expatriate fees for the work permits on a quarterly basis instead of the existing system of the annual payment.

The fees (expatriate fee and dependent fee) for the renewal of work and residency permits can be split up and paid based on the duration of the issued and renewed permits. The expatriate fee and iqama renewal fees are to be paid by the current employer.