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Saudi Arabia

1-Year Iqama Renewal: A Guide to Costs and Procedures

Saudi Arabia is a famous destination for international labor and employment, offering a favorable tax environment, a stable job market, and access to a rich cultural experience. For expatriates and foreign investors looking to work and live in the Kingdom, the Iqama, or residence permit, is an essential legal document. Understanding how to obtain and maintain an Iqama is crucial for ensuring compliance with Saudi Arabia’s immigration laws and fully integrating into the country’s systems.

This article explains essential information about Saudi residency permits, the renewal process, benefits, and the iqama renewal fees for the 1-year stay.

Iqama in KSA-Introduction

The Iqama is an official residence permit that allows foreigners to live and work in the Kingdom. This important document not only confirms legal status but also allows visa holders to access key services like medical care, financial services, and training. The Iqama is required for expats seeking to work in Saudi Arabia. Although initial admission into the country is possible without one, access to most services is restricted until it is acquired.

Iqama Renewal Advantages in the Saudi Kingdom

Constitutional Residency:
The Iqama enables expatriates to live legitimately in the Saudi Kingdom.

Employment Authorization:
It grants authority to work in the territory and guarantees legitimate employment status.

Access to Resources:
Iqama holders have access to vital amenities like medical care, banking, and schooling.
Families Sponsoring:
Iqama owners can sponsor their spouses or kids, allowing them to stay in the country and enjoy the benefits.

Visa-Free Travel:
Expatriates can easily travel with an Iqama to other Gulf Cooperation Council countries without a visa or with a visa on arrival. 

Iqama Validity and Renewal for Smooth Residency and Travel in KSA

iqama renewalAn Iqama is usually valid for one to two years, while the actual card is valid for five years. The Iqama must be renewed every year, and its validity depends on the company’s approval or sponsorship. Dissolution of the employer’s firm voids the Iqama, requiring departure or transfer.

The renewal procedure is simple, and iqama renewal fees for 1 year are relatively lower, but it must be performed on time to prevent penalties or legal difficulties. Employers are liable for processing their workers’ applications and renewals.

Saudi Iqama Renewal Simplified Process:

Signup to Abshir’s Web Portal:
The Abshir site is your primary source for critical services such as Iqama renewal. If you are new to Abshir, establish an account.
Go to Abshir’s website.
Sign in with your credentials.
Choose “My Services” from the home screen.
Choose the Option ‘Renew Iqama:
Beneath the Abshir services page, choose the “Renew Iqama” button.
Validate Personal Information:
If you renew via your company, they will check your information. Personalized verification requires you to authenticate your data on Abshir.
Verify the job title, pay, and personal information for correctness.
Rectify any error with HR or legal authorities.
Paying Iqama Renewal Costs:
Fees vary by profession and company, but often include: 

Iqama Renewal Cost:
Six hundred and fifty to eight hundred Saudi Riyals yearly.
Work Permit Cost:
Nine thousand six hundred Saudi Riyals per year, funded by the hiring company.
A Family Member or Dependent Fee: 
If supporting family members, the fee is four hundred Saudi Riyal per dependent monthly.
Fees may be paid by internet banking, credit cards, ATMs, or personally at your bank.
Verify the Renewal:
After making a payment, return it to Abshir’s website. Once the renewal process is completed, you will get a confirmation message.
Acquire your Iqama:
After renewal, your actual Iqama card will be sent to you or available for collection at Abshir. 

Requirements for Saudi Iqama Renewal:

Whenever you begin, make sure you satisfy these fundamental requirements:

Passport Authenticity:
Ensure that your passport is legitimate for at least six months.

Health Insurance Coverage:
Expatriates must have current health insurance coverage prior to renewal.

Clearing Traffic Penalties:
Settle any unpaid traffic penalties before proceeding.

Paying Charges:
Renewal expenses, including work permit fees and late fees, must be paid in advance by the company you work for. 

Essential Consideration for the Saudi Iqama Renewal Process

Iqama Extension Period:

Iqama renewals are typically performed on a yearly basis.
It is important to begin the renewal procedure well in advance of the expiry date.

Sanctions for Delays:

Late renewals may result in penalties. Thus, it is critical to stick to the renewal deadline.

Authentication Procedure:

The government may perform a verification procedure to deliver proper and most recent data. Renewing your Iqama is an essential obligation for expats in Saudi Arabia, according to Saudi labor law. Following this detailed guide and remaining informed about the procedure will guarantee a seamless renewal experience and allow you to continue enjoying your legal residency in the Saudi Kingdom. 

Recent Updates for Saudi Iqama Renewal Rules

Adjustable Renewal Conditions:

For improved financial planning, choose from quarterly or yearly iqama renewal options.

Ninety-Day Grace Time Frame:

Without incurring any fees, you may renew for up to ninety days after the expiry date.

Electronic Iqama Options:

Access your electronic Iqama with the Abshir online portal for convenient Android phone storage. 

The Cost of Saudi Iqama Renewal:

The usual charge for issuing or renewing an Iqama card is six hundred and fifty Saudi Riyals. However, under the new Iqama guidelines in the Saudi Kingdom, employers will be allowed to pay the whole sum in installments. Similarly, the payments may be set for the appropriate period, as seen below:

  • It costs six hundred and fifty Saudi Riyals for a year of legality.
  • A three-month validity costs one hundred sixty-three Saudi Riyals.
  • The cost for six months’ validity is three hundred and twenty-five Saudi Riyals.
  • The charge for nine months of validity is four hundred and eighty-eight Saudi Riyals.

Work Permit or Maktab Amal Costs :

As an employer, you must pay these labor Iqama costs in the KSA work permit or Maktab Amal. Similarly, the law requires you to pay the fees monthly for at least three consecutive months. Furthermore, the employer is liable for covering the cost of this work permit. The following is the structure of the work permit prices:

  • The three-month cost is two thousand and four hundred Saudi Riyals.
  • The 6-month price is four thousand and eight hundred Saudi Riyals.
  • The nine-month fee is seven thousand and two hundred Saudi Riyals.
  • The fee for one year is Nine thousand and six hundred Saudi Riyals.

Immigrant Dependent Costs: 

Foreigners who sponsor a dependent in the country are required to pay the Iqama renewal costs for each dependent. Similarly, they must pay a monthly charge of four hundred Saudi Riyals. Nevertheless, the employer or sponsor may send payments every three months as follows:

  • A three-month cost is twelve hundred Saudi Riyals.
  • The charge for six months is two thousand four hundred Saudi Riyals.
  • A nine-month iqama renewal cost three thousand six hundred Saudi Riyals.
  • A twelve-month cost is four thousand and eight hundred Saudi Riyals.

Iqama Renewal Price Calculation:

Settlement for Iqama renewal costs have a convoluted procedure that varies according to the duration necessary for renewal. Additionally, it will be determined by the number of dependents you sponsor.
Similarly, the appropriate method for determining the total renewal price is the period of the Iqama plus the renewal of the work permit and the number of dependents. For instance, foreigners who would like to extend their work visa for three months without any dependents must pay an additional fee:

  • The iqama price is one hundred and sixty-three Saudi Riyals, while the work permit is two thousand and four hundred Saudi Riyals.
    As a result, the total cost will be two thousand five hundred and sixty-three Saudi Riyals over three months. If you have a dependent, you must add twelve hundred Saudi Riyals for a total of three thousand seven hundred Saudi Riyals. It is also worth noting that this cost estimate excludes health insurance fees.

Saudi Iqama Renewal Costs for Expatriates and Their Family:

Saudi Iqama RenewalIn KSA, residence permits must be renewed on a regular basis, and certain costs, such as work permit costs, apply. For immigrants who sponsor family members, the renewal procedure involves paying the dependent fee for each family member.

Relief:

Household drivers, housekeepers, and certain domestic staff are free from work permit payments. Small businesses with five or fewer workers are free from work permit expenses, provided their owner is registered as a worker.

Payment Variability:

Saudi Arabia now authorizes the granting and renewal of residence and employment licenses for periods of at least three months. This allows individuals and businesses to pay Iqama renewal costs quarterly instead of yearly.

Dependent Taxation:

Every family member receives four hundred Saudi Riyals each month.

Fines For Iqama Expiration Date:

  • The first time, five hundred Saudi Riyals.
  • The second time, one thousand Saudi Riyals.
  • The grace period is three days after expiration. 

Legal Consequences for Late Iqama Renewal in KSA

You are advised to renew your Iqama at least three days before the expiry date. Alternatively, you will be fined, which will escalate as more days pass beyond the document’s expiry date. Employers may consider Saudi Arabia payroll outsourcing services to avoid legal obligations. The following is structured as follows:

The first-time late renewal fee is five hundred Saudi Riyals.
The second late renewal cost is one thousand Saudi Riyals.
If the late renewal occurs for the third time, the employee may be deported.
To avoid fines, you must travel to the authorities’ office, pay the late Iqama renewal cost, and then apply. However, if a foreign employee wishes to leave the country, he or she must request that the business revoke both the work and residency permits.
As a result, it is recommended that, as an employer, you do not prolong the cancellation procedure in order to prevent issues; on the contrary, you will need to seek external assistance. 

Conclusion

The Iqama is an essential part of life for expats in Saudi Arabia. This residence permit is necessary for foreigners wishing to live in Saudi Arabia since it allows you to work and remain in the country legally while also providing access to key services. By knowing the procedure, fees, and compliance requirements, expatriates may ensure a seamless and lawful stay in the Kingdom while capitalizing on the possibilities it provides. You may consider a top service provider for simple and hurdle-free iqama renewal procedures in KSA.

PEO Middle East is a leading service that can help you to smoothly renew Iqama for your workers and avoid hefty fines and legal consequences. Contact us today!

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