Saudi Arabia Iqama Fees 2026: Complete Guide (Renewal, Work Permit, Dependent Levy + Real Examples)

Saudi Arabia iqama fees are not one fee. In 2026 most residents end up paying a bundle tied to three separate things: the residence permit itself, the work permit levy for expat employees, and the dependent levy if family members are sponsored. Which of these apply to you depends on your employer’s sector, your company’s size, and who you sponsor.

These charges matter because Saudi systems block renewals when payments are outstanding, and penalties apply when renewals run late. If you are unsure where you stand before reading further, confirm your iqama expiry date and check your employer’s iqama color status, because a Red employer cannot process your renewal no matter what you pay. For the wider picture of how residency works here, see our complete iqama guide for expats.

2026 Iqama Fee Snapshot

Fee typeWho it applies to2026 amountNotes
Iqama renewal (residence permit)Resident workerSAR 650 per yearPro-rated for 3, 6 and 9 month renewals
Work permit levy (financial equivalent)Expat employee, employer-paidSAR 700 or 800 per monthRate depends on your company’s Saudization balance. Several exemptions apply
Work permit licence feeExpat employee, employer-paidSAR 100 per yearApplies to all non-Saudi workers including exempt categories
Dependent levySponsored family membersSAR 400 per month, per personSAR 4,800 per person per year
Absher Business e-service feeEmployers using Absher BusinessAround SAR 51.75 for many servicesVaries by service type

Two people holding what looks like the same iqama can pay wildly different totals. The variable is almost never the iqama itself. It is the levy, and whether an exemption applies.

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Iqama Renewal Fee (Residence Permit)

The residence permit renewal is SAR 650 for a full year. This is the part most people mean when they say “iqama fee,” and it is the smallest component of the bundle for most employees. Renewals can also be done for 3, 6 or 9 months (SAR 163, SAR 325 and SAR 488), but the work permit levy is charged monthly regardless, so a shorter iqama does not proportionally reduce your employer’s total cost.

Rates for other worker categories, how to check and pay the renewal, the documents you need and what blocks a renewal are all in our guide to iqama renewal fees for 1 year.

Work Permit Levy in 2026

This is where the real money is, and where employers feel it.

The MHRSD schedule sets the financial equivalent, commonly called the expat levy or work permit levy, at two rates:

  • SAR 700 per month when expat employees do not exceed Saudi employees
  • SAR 800 per month when expat employees exceed Saudi employees

Both rates can apply within the same establishment at once, because the higher rate attaches to the workers above the balance point rather than to the whole workforce.

A separate work permit licence fee of SAR 100 per year applies to every non-Saudi worker, including those exempt from the monthly levy. The monthly levy itself can be paid in instalments, commonly in three-month blocks.

Annual Cost Per Employee

ScenarioMonthlyAnnual
Expats do not exceed SaudisSAR 700SAR 8,400
Expats exceed SaudisSAR 800SAR 9,600

Your company’s Saudization band determines which rate applies, which is why the iqama color status check is worth running even when your own status is fine. It tells you something about your employer’s cost structure.

For domestic worker fees specifically, which sit under a different office and a different schedule, see our guide to how to check and pay the Maktab Amal fee.

Who Does Not Pay the Work Permit Levy

This section is missing from most fee guides, including earlier versions of this one, and it is the part that saves people real money. Several categories are exempt from the monthly levy.

Industrial Sector: Permanent Exemption Since December 2025

On 17 December 2025 the Saudi Cabinet approved abolishing the financial levy on expatriate workers in industrial facilities holding a valid industrial licence. This matters more than it might sound, because the industrial sector had operated under a temporary waiver since 2019 that was due to expire on 31 December 2025. Rather than extend it again, the Cabinet made it permanent.

For a factory with fifty expat workers, that is a difference of several hundred thousand riyals a year against a commercial-licence competitor doing the same work. The Minister of Industry and Mineral Resources framed the decision as reducing operating costs so factories can expand and invest in automation.

If you work in manufacturing, assembly or packaging for a company holding a valid industrial licence, the SAR 8,400 and SAR 9,600 figures above do not apply to you at all. We covered the reasoning and the sector impact in why scrapping the expat levy is a game changer for industry.

Small Business Exemption

Establishments with nine or fewer total employees, where the owner is registered with GOSI as full-time, can qualify for a discount on the levy:

  • Owner alone, with no Saudi staff: exemption for a limited number of expat workers
  • Owner plus at least one GOSI-registered Saudi employee: exemption extends to a larger number

This scheme has been extended and carries an expiry date, so confirm the current end date and the exact worker counts before relying on it.

Domestic Workers

Domestic worker levy liability starts after a threshold rather than from the first worker, and the threshold differs by employer type:

  • Saudi employers: the levy begins from a later worker in the household
  • Non-Saudi employers: the levy begins from an earlier worker
  • Premium residency holders: treated on the Saudi employer threshold

Fully Exempt Categories

Certain workers carry no monthly levy at all regardless of employer:

  • GCC nationals
  • Private expatriates, meaning the spouse or children of a Saudi citizen
  • Nationalities exempt from deportation, including specified documented groups
  • Displaced tribe members
  • Recruitment company workers
  • A limited number of agriculture and fishing workers

Note that the SAR 100 annual work permit licence fee still applies to non-Saudi workers even where the monthly levy does not.

Dependent and Companion Levy

The dependent levy is SAR 400 per month per person, and has stood at that level since 2020. That is SAR 4,800 per person per year.

DependentsMonthlyAnnual
1SAR 400SAR 4,800
2SAR 800SAR 9,600
3SAR 1,200SAR 14,400
4SAR 1,600SAR 19,200

For a family of four this is the largest single line in the household budget after rent, and it is charged whether or not the dependents work, study, or spend most of the year in the Kingdom. If a dependent wife moves to an employer’s sponsorship for a job, the employer pays her work permit fees instead; see jobs in Saudi Arabia for females.

The distinction between dependents and companions matters for who is covered, since the two categories capture different family relationships and registered statuses. Confirm which category each of your family members falls under before budgeting, because assuming the wrong one is a common and expensive error.

Saudi authorities have periodically discussed reviewing expat-related fees, dependents in particular. As of 2026 the SAR 400 monthly figure remains the enforced baseline.

Renewal Timing and Penalties

Late renewal adds fines on top of everything above. Penalties start once a renewal runs within three days of expiry, so start at least a week ahead. The fine amounts, the renewal timeline and what an expired iqama blocks are covered in our iqama renewal penalties section.

Who Pays: Employer or Employee

Article 40 of the Saudi Labour Law places these costs on the employer. That covers recruitment fees, the residence permit, work permits, renewals, and certain fines arising from employer negligence.

Practice varies by contract and category, especially around dependents, where many employers do not cover the levy and are not clearly required to. If you are negotiating an offer, use Article 40 as your anchor and get dependent coverage stated in writing rather than agreed verbally. Many expats in Saudi Arabia discover the gap only when the first SAR 1,600 leaves their account.

Deducting the work permit levy from an employee’s salary is not permitted. If it is appearing on your payslip, that is worth raising.

Iqama Fees Calculator 2026

For a typical private-sector expat worker on a commercial licence:

Annual total ≈ 650 + (8,400 or 9,600) + 100 + (4,800 × number of dependents)

Add platform and service processing fees where applicable. Subtract the levy entirely if your employer holds a valid industrial licence or another exemption applies.

Or let the calculator do it: choose the worker category, renewal period, levy rate and number of dependents. It uses the same 2026 fees as this guide and splits the total into what the employer pays and what you pay.

Estimate only. Confirm the final amount in Absher, Muqeem or Qiwa before paying.

Worked Examples, 12-Month Renewal

ExampleLevy rateDependentsAnnual total
A: Single workerSAR 700/mo0SAR 9,150
B: Single workerSAR 800/mo0SAR 10,350
C: Worker, spouse, 2 childrenSAR 700/mo3SAR 23,550
D: Worker, spouse, 2 childrenSAR 800/mo3SAR 24,750
E: Worker, spouse, 2 children, industrial licence employerExempt3SAR 15,150

Example E is the one worth studying. The same family, the same city, the same job description, and a difference of over SAR 9,000 a year purely because of the employer’s licence type. That is the practical value of the December 2025 exemption, and it is why the sector of your employer belongs in your calculation before you accept an offer.

Iqama Transfer (Sponsorship Change) Fees

The transfer request in Qiwa is free for the worker (HRSD lists the service as free), and the government transfer fee is paid by the new employer, not by you. Where a sponsorship transfer fee applies, the commonly applied schedule is:

  • First transfer: SAR 2,000
  • Second transfer: SAR 4,000
  • Third and subsequent transfers: SAR 6,000

The employer sees the exact amount before it pays, and you can follow the request with our iqama transfer status guide. Eligibility and cost have both shifted under the labour reforms, and a transfer that was chargeable two years ago may not be handled the same way now.

Managing the cost

Can I renew my iqama for 3 months instead of 12?

Yes. Saudi authorities allow 3, 6, 9 and 12 month renewal periods for residency and work permits. Domestic workers are excluded from the quarterly option and renew annually. Note that the work permit levy is charged monthly regardless, so a shorter iqama does not reduce your employer’s levy proportionally.

What is the dependent fee in 2026?

SAR 400 per month per dependent or companion, which is SAR 4,800 per person per year. This level has applied since 2020.

Is the expat levy really abolished?

Only for a specific group. In December 2025 the Cabinet permanently abolished the levy for companies holding a valid industrial licence. It was not abolished across the board. Commercial-licence employers still pay SAR 700 or SAR 800 per month per expat worker.

Does health insurance affect my renewal?

Yes. Renewal is linked to insurance verification through the CCHI system. In most cases this is an automated system check rather than paperwork you submit, but a lapsed policy will stop the renewal.

Why is my colleague paying less than me for the same job?

Almost always the employer, not the employee. The levy rate depends on the company’s Saudization balance, and the levy disappears entirely for industrial licence holders. Two identical roles at two different companies can differ by more than SAR 9,000 a year.

Can my employer deduct the levy from my salary?

No. The work permit levy is an employer cost under the labour law and may not be passed to the employee through salary deduction.

Arslan Ahmad
Arslan Ahmad
Arslan Ahmad is the founder and editor of Saudi Life Guide, an IT professional who has lived and worked in Saudi Arabia with his family for several years. He started the site in December 2025 to give expats clear, up-to-date guides on iqama and visas, jobs and labour law, banking, SIM cards, travel and religious seasons. Every guide is checked against official sources such as Absher, Qiwa and Muqeem, reviewed by him before publication and dated when it is updated.

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2 COMMENTS

  1. Employee Name & ID:
    Muhammad Mohsin Mazhar Hussain (2396132959)
    New Work Permit Expiry Date: 08/02/2027
    Validity Period: 12 months
    Total Fees: SAR 18,200
    Late Fees: Yes
    Note: The total amount is high because late fees (penalty) are included. Please 🤲😥

  2. Employee Name & ID:
    Muhammad Mohsin Mazhar Hussain (2396132959)
    New Work Permit Expiry Date: 08/02/2027
    Validity Period: 12 months
    Total Fees: SAR 18,200
    Late Fees: Yes
    Note: The total amount is high because late fees (penalty) are included. Please 🤲😥

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