Since July 1, there has been a ‘panic’ lingering around the expatriates community due to the implementation of dependent levy in the Kingdom of Saudi Arabia. While there are 10.5 Million expats working in private companies, there are also around 3 Million dependents living in the Kingdom – of which half of this number might possibly go back to their home country.
While most expats are worried about the financial impact that this levy has caused, there are some companies-to-the-rescue who are willing and have decided to pay these dependent fees; in order for the expat not to leave the country. Who wouldn’t right? It’s economically sound. However, the main criteria is: this expat must be highly skilled.
Now in order for you to know and verify this information, you must ask your HR whether you are eligible for this benefit or otherwise.
It’s not a government policy, but a consideration of the companies for its employees. Most of these companies are already revising their human resource plans and salary schemes in order for their budget to align.
As you may have known, dependent fee will start from 100 SAR monthly on each dependent which is expected to reach 1200 SAR annually.
By July 2020 it will 400 SAR per month per dependent i.e. 4800 SAR anually.
Companies will also be paying tax based on the Nitaqat wherein it all depends on the no of Saudi Expatriates Vs Saudi Citizens working in a company.