“Everything You Need to Know About Saudi Arabia’s Domestic Sector Levy Law”

2023-05-10 03:10:54

Riyadh: The second phase of levy (monthly fee) for domestic sector employees in Saudi Arabia will come into effect from tomorrow. The law requires the payment of a levy (tax) of 9,600 riyals per year for domestic workers who are sponsored by a Saudi citizen for more than four and a foreigner for more than two.

In the first phase, effective from May 22, 2022, only newly recruited workers had to pay the levy. From tomorrow, the levy will also be paid to existing employees who are above the prescribed limit. According to this, the levy must be paid for five and above domestic workers under the sponsorship of a Saudi citizen and three and above domestic workers under the sponsorship of a foreigner.

At the same time, employees employed to take care of differently-abled persons are exempted from the levy. In Saudi Arabia, the levy is 800 riyals per month for private sector employees and 400 riyals per month for dependents. Levy which used to be paid in one go can now be paid once in 3 months. The levy was introduced for private sector employees from 2014 and for dependents from 2017.

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