Iqama and Work Permit Fees — Who Actually Pays?

One of the most common points of confusion among expatriate workers is conflating two entirely different types of government fees tied to their presence in Saudi Arabia. Understanding the difference shows you who is actually responsible for each — and why your employer cannot deduct either one from your salary.

1️⃣ The Iqama and Work Permit Issuance/Renewal Fee

Under Royal Decree No. M/18 of 1421H, a fee of 100 SAR was imposed on the issuance or renewal of the residency permit, and a separate fee of 50 SAR on the issuance or renewal of the work permit. This fee is paid for the document itself, and is an administrative obligation on the employer, since it is the party submitting the issuance/renewal request on the worker's behalf, for the benefit of its own operations.

2️⃣ The Expatriate Levy (an entirely separate fee)

This is a completely different fee from the iqama fee, and is imposed on the establishment (the company) itself, not the worker, under Cabinet Decision No. 353 of 1432H: a monthly amount collected for the Human Resources Development Fund for every expatriate worker exceeding the number of Saudi employees at the establishment. In other words, this fee is tied to the establishment's Saudization ratio, not to the individual expatriate worker.

✅ The practical takeaway for you as a worker

1. The iqama and work permit fee (100+50 SAR) is an administrative obligation on the employer upon renewal — it should not be deducted from your salary.
2. The monthly expatriate levy is an internal calculation between the establishment and the state related to Saudization ratio — it is not a debt owed by you personally in any way.
3. If you find any unexplained deduction labeled "iqama fees" or "levy" on your payslip, request written clarification from your employer, or use Sanad to review the matter.