The second phase to selectively impose a levy on domestic workers will start on May 11

09 May 2023

News
The second phase to selectively impose a levy on domestic workers will start on May 11

According to the Saudi Press Agency, the Ministry of Human Resources and Social Development (MHRSD) has stated the second phase of the Council of Ministers' decision to selectively levy domestic employees will begin on May 11.

If they have more than four home employees, Saudi employers must pay a yearly charge of SR 9600 for each employee, while foreign employers must pay the same amount for every additional worker.

Beginning on May 22, 2022, the ministry will begin implementing the first phase of the Cabinet resolution to charge domestic employees on an annual basis in the amount of SR 9,600. The first phase, according to the ministry, only applied to new domestic employees hired during the first year following the Cabinet decision, but the second step would have applied to both new and current domestic workers who exceeded the number that was exempted.

A Saudi employer must pay the yearly charge if he recruits a fifth domestic worker, while an expatriate employer must pay the same price if he hires a third worker, according to a resolution made by the Cabinet on March 8, 2022. Every extra employee employed by the same employer will be subject to the cost.

On the other hand, there will be a humanitarian exception. For instance, workers employed to care for family members who require medical attention or for individuals with special needs will be excused from payment under specified terms and circumstances defined by the committee established for that purpose.

 

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