May 11, Saudi Arabia will begin applying the second phase of a yearly tax\levy on workers.

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The Saudi Press Agency stated that the Ministry of Human Resources and Social Development (MHRSD) announced the implementation of the second phase of the Council of Ministers’ decision to selectively impose a tax on domestic employees beginning on Thursday, May 11.

If the number of house workers exceeds four, Saudi employers must pay a yearly charge of SR9600 for each additional worker, while expatriate employers must pay the same amount for each additional worker.

From May 22, 2022, the ministry began implementing the first part of the Cabinet decision to selectively impose an annual charge of SR9600 on domestic workers. According to the ministry, the first phase applies solely to new house employees hired within the first year following the issuance of the Cabinet resolution, while the second phase applies to both new and current domestic workers who exceed the exempted number.

According to the Cabinet decision of March 8, 2022, 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. The cost will be charged for each extra employee employed by the same employer.

However, an exception will be made on humanitarian grounds. Workers employed to provide medical care to a family member or to care for people with special needs, for example, will be excused from payment under specified terms and circumstances defined by the committee formed for that purpose.

Source: https://saudigazette.com.sa/article/632275/SAUDI-ARABIA/Saudi-Arabia-to-start-implementing-second-phase-of-annual-levy-on-house-workers-from-May-11

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