Saudi Arabia to refund contractors ‘expat levy’

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Saudi Arabia’s Labour Ministry will reimburse contractors for a fee levied against them for employing more foreigners than Saudis.
The refund covers those who had signed agreements with the government before November 2012, and before the expat levy – SR2,400 – was introduced.
In a report carried by Arab News, Abdullah bin Shakir Al-Ghalib, secretary-general of the Makkah Chamber of Commerce and Industry said, “Labour Minister Adel Fakeih has endorsed the plan for the Human Resource Development Fund (HRDF) to pay the compensation to the affected contractors.”
“We have already informed our members about the ministry’s decision which came as a result of the efforts of the Council of Saudi Chambers (CSC).”

Abdul Rahman Al-Zamil, president of CSC said, “We have been successful in convincing the leadership on the need to pay compensation and the minister responded positively to our request that also protects our national interest.”
Asked why the ministry was imposing the levy on contracting companies where Saudis are not interested to work, Al-Zamil said it was to free up funds required for training Saudis and paying part of their salaries.

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