Levy on expat workers cannot be paid monthly

Updated 18 May 2015

Levy on expat workers cannot be paid monthly

The Ministry of Labor has rejected a proposal that would allow contractors to pay their levy on expatriate workers on a monthly basis.
All contractors are currently obliged to pay a SR2,400 levy in advance for every expatriate worker over their allowed Saudization quota.
The national committee for contractors at the Council of Saudi Chambers had earlier proposed that firms should be allowed to pay SR200 a month for every expatriate worker that falls within this category.
Muammer Al-Atawi, a member of the committee, said the proposal would again be filed when the members meet with Labor Minister Mufrej Al-Haqabani.
The ministry said the proposal contradicts a Cabinet resolution that makes it mandatory for companies to pay the amount in advance annually if they want to renew the permits of these workers.
The government had decided to offset the cost of this tax by asking these firms to incorporate the additional cost in their agreements for future projects.
Al-Atawi said the levy has been a burden on companies. “The ministry’s decision to force the private sector to pay SR2,400 was a grave mistake.
The former labor minister Adel Fakeih will discover the impact of his incorrect decision when he starts managing the Ministry of Economy and Planning because it will impact on the country’s future development plans,” he said.


King Salman meets GCC leaders for 40th Gulf summit in Riyadh

Updated 21 min 20 sec ago

King Salman meets GCC leaders for 40th Gulf summit in Riyadh

  • Heads of the delegations land in Riyadh before the 40th Supreme Council meeting gets under way
  • Among the many issues expected to be discussed is a greater level of integration between Gulf countries

RIYADH: GCC leaders arrived in Riyadh Tuesday for a summit that will focus on improving integration between Gulf countries.

The 40th Supreme Council meeting will be chaired by King Salman, who met the representatives from each country as they landed.

The heads of the delegations including the UAE Vice President and Prime Minister Sheikh Mohammed bin Rashid Al-Maktoum, Bahrain's King Hamad bin Isa Al-Khalifa, Oman's Deputy Prime Minister for the Council of Ministers Fahd bin Mahmoud Al-Said and Qatar's Prime Minister Sheikh Abdullah bin Nasser bin Khalifa Al-Thani.

GCC Secretary General Dr. Abdullatif Al-Zayani said Gulf leaders will discuss a number of important issues to enhance the process of cooperation and integration among member states in various political, defense, security, economic and social fields.

They will also review regional and international political developments, security conditions in the region, and their implications for the security and stability of the GCC countries.

Among the topics on the agenda is the war in Yemen and Iran’s interference in regional affairs.

At a preparatory meeting on Monday, Gulf foreign ministers approved the nomination of former Kuwaiti Finance Minister Nayef Al-Hajraf as the next secretary-general of the GCC.

His term will begin in April 2020 following the end of Al-Zayani’s term.