Saudi Arabia.. Extending the exemption of small enterprises from paying the financial fees for expatriates

The Saudi Council of Ministers agreed, in its session today, in Irqah Palace in Riyadh, headed by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, to extend the exemption of small enterprises from paying the financial fees for expatriates.

The Council’s decision stipulated “extending the implementation of clauses (Second) and (Third) of Cabinet Resolution No. (515) dated 14/8/1441 AH – regarding exempting small establishments with a total number of workers of nine workers or less, including the owner, from paying the financial compensation for a period Three years – for a period of one year from the date of expiration of the period referred to.

The decision was issued in April 2020, and was adopted by the Kingdom’s leadership as part of a package of comprehensive measures and important incentive packages aimed at strengthening the private sector’s response to the effects of the Corona pandemic.

The exemption is for two expatriates working in the establishment if the owner is full-time to work in it and is registered with the social insurance.

Four expatriates working in the establishment are also exempted if at least one of its employees is in addition to the owner of the establishment who works in it, and in all cases the maximum that can be exempted is four expatriates only.

It is noteworthy that the financial compensation is paid by companies of all kinds in Saudi Arabia, according to specific exceptions, which is a sum of money for each expatriate worker, in the context of procedures for opening job opportunities for Saudis.