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Saudi Iqama Cost Calculator

Itemised Iqama renewal cost with the levy tier toggle and the dependent line. Every row is labelled with who legally pays: employer for the work permit, Iqama fee, licence and Absher; employee for the SAR 400 per month dependent levy.

Last verified: 2026-06

Typical renewal cycle is 12 months. Some employers go 24 months in one shot.

Work permit levy tier

Dependent levy is paid by the employee/sponsor, not the employer.

Total Iqama cost

SAR 9,201.75

Over 12 months, Tier 1 levy

LinePaid byAmount
Work permit levy (Tier 1, Saudization-balanced)
SAR 700/month × 12 months
EmployerSAR 8,400.00
Iqama renewal fee
SAR 650/year × 1 year
EmployerSAR 650.00
Work permit licence fee
SAR 100/year × 1 year
EmployerSAR 100.00
Absher Business service fee
SAR 51.75 per Iqama transaction
EmployerSAR 51.75
Employer subtotalSAR 9,201.75
Read the Saudi Iqama guideFull renewal walkthrough

What goes into an Iqama renewal

A Saudi Iqama renewal is not a single fee. It is a stack of five recurring lines, each with its own legal payer and its own portal. The largest line by a wide margin is the work permit levy paid into the Maktab Amal account through Mudad: SAR 700 per worker per month for a Tier 1 employer (where expats do not exceed Saudi headcount) or SAR 800 per worker per month for a Tier 2 employer (where expats exceed Saudis). The levy alone runs SAR 8,400 to SAR 9,600 per worker per year before any other line is added. Next comes the Iqama renewal fee at SAR 650 per year, paid by the employer through SADAD against the Muqeem bill. Then the work permit licence fee at SAR 100 per year. Then the Absher Business transaction fee at SAR 51.75 per Iqama operation, which the employer pays at the moment of the renewal transaction. Finally the dependent levy at SAR 400 per dependent per month, which is the only line that sits on the employee/sponsor side rather than the employer side.

The total for a single Tier 1 worker with no dependents on a 12-month renewal is roughly SAR 9,202: the SAR 8,400 levy, the SAR 650 Iqama fee, the SAR 100 licence and the SAR 51.75 Absher fee. The same worker in a Tier 2 firm runs roughly SAR 10,402. Adding two dependents on the family file lifts the employee side by SAR 9,600 per year (2 dependents times SAR 400 times 12 months). The calculator above breaks the total into an employer subtotal and an employee subtotal so the salary-negotiation line and the personal-budget line are visible separately. For the full Iqama process walkthrough including Mudad setup and Absher, see the Iqama renewal guide.

Tier 1 vs Tier 2 levy

The work permit levy was introduced in mid-2017 and the tier structure has been in force since 2018. Tier 1, at SAR 700 per worker per month, applies when the number of expat workers in the establishment does not exceed the number of Saudi employees on the Qiwa headcount. Tier 2, at SAR 800 per worker per month, applies when expats exceed Saudis. The tier is set per-establishment, not per-worker; every expat in a Tier 2 firm pays the Tier 2 rate regardless of nationality, salary or skill level. The difference of SAR 100 per worker per month adds up fast for any firm running 10+ expats. The Qiwa portal shows the current tier in the Saudization indicator panel.

Who pays what, legally

The split between employer-paid and employee-paid lines is fixed by Ministerial Decision and not subject to private agreement. Any attempt by the employer to recover the work permit levy, the Iqama renewal fee, the work permit licence or the Absher fee from the worker through salary deduction, benefit reduction or contractual offset is a labour-law breach that the Labour Office will reverse on complaint. The dependent levy is the only Iqama-cost line that is the worker's personal liability; that single line is the only legitimate Iqama-related cash flow out of the worker's pocket.

Line itemAmountLegal payer
Work permit levy (Tier 1)SAR 700/monthEmployer
Work permit levy (Tier 2)SAR 800/monthEmployer
Iqama renewal feeSAR 650/yearEmployer
Work permit licence feeSAR 100/yearEmployer
Absher Business transactionSAR 51.75 per Iqama operationEmployer
Dependent levySAR 400 per dependent/monthEmployee/sponsor

Worked examples

Example 1: 12-month renewal, Tier 1, no dependents. Levy is SAR 700 times 12, that is SAR 8,400. Iqama renewal SAR 650. Work permit licence SAR 100. Absher SAR 51.75. Employer total SAR 9,201.75. Employee total SAR 0. Grand total SAR 9,201.75.

Example 2: 24-month renewal, Tier 2, two dependents. Levy is SAR 800 times 24, that is SAR 19,200. Iqama fee SAR 650 times 2 years, that is SAR 1,300. Work permit licence SAR 100 times 2, that is SAR 200. Absher SAR 51.75 times 2, that is SAR 103.50. Employer total SAR 20,803.50. Dependent levy 2 dependents times SAR 400 times 24 months, that is SAR 19,200. Employee total SAR 19,200. Grand total SAR 40,003.50.

Example 3: 12-month renewal, Tier 1, one dependent. Employer total SAR 9,201.75. Dependent levy 1 times SAR 400 times 12, that is SAR 4,800. Employee total SAR 4,800. Grand total SAR 14,001.75.

Edge cases and exemptions

Industrial licence exemption

Establishments holding a valid Industrial Licence are permanently exempt from the work permit levy under the December 2025 Ministerial decision carried into 2026. The other lines (Iqama renewal, licence, Absher, dependent) still apply, but the largest line disappears entirely. Confirm the licence status on the Ministry of Industry portal before relying on the exemption.

Premium Residency

Premium Residency holders pay none of the standard Iqama-cost lines, including the dependent levy. The Premium Residency itself replaces the standard Iqama framework. See the Premium Residency guide for the eligibility brackets and fees.

New-arrival dependent grace

Newly-arrived dependents have a 90-day grace from arrival before the dependent levy starts. The calculator above does not net the grace; use the dependent fee calculator if your family arrived in the last three months.

Late Iqama renewal

A late Iqama renewal adds SAR 500 for a first offence and SAR 1,000 for repeat offences, applied through Absher at the time of the late transaction. The fine is on top of the standard fee. Set Mudad reminders 90 days before expiry to avoid it.

How the payments actually clear

The work permit levy clears through Mudad against the Maktab Amal account; the employer chooses the cadence (monthly, quarterly, semi-annual or annual). The Iqama renewal fee and work permit licence fee clear through SADAD against the Muqeem bill code; both lines settle in one transaction. The Absher Business transaction fee is charged at the renewal moment on the Absher Business portal where HR processes the renewal. The dependent levy clears through SADAD against bill code 077 (search 'Muqeem dependent fee' inside any Saudi bank app) and is the only line the worker processes personally. The recommended order is: dependent levy first (cleared by the worker), Iqama renewal next (cleared by the employer), and the levy on its independent Mudad cadence.

For broader Saudi residency planning, the Iqama expiry check guide and the Iqama transfer (Naqal Kafala) guide cover the related transactions. If you are leaving the Kingdom, pair this calculator with the exit re-entry calculator and the end-of-service calculator.

Frequently asked

What does an Iqama renewal actually cost in 2026?

A standard 12-month Iqama renewal in a Tier 1 (Saudization-balanced) firm costs the employer roughly SAR 9,202: SAR 8,400 work permit levy, SAR 650 Iqama renewal fee, SAR 100 work permit licence and SAR 51.75 Absher Business transaction fee. Tier 2 firms pay around SAR 10,402 with the levy at SAR 9,600 instead of SAR 8,400. The dependent levy at SAR 400 per dependent per month sits on the employee/sponsor side and adds SAR 4,800 per dependent per year on top. The figures are the same in 2026 as they were in 2024 and 2025; the levy reform raised the rates in 2017 and they have been stable since.

Who pays each line legally?

Saudi labour regulation makes the employer responsible for the work permit levy, the Iqama renewal fee, the work permit licence fee and the Absher Business transaction fee. The dependent levy is paid by the employee as the sponsor of the family file. The employer cannot legally deduct any of the employer lines from the worker's salary; if a payslip shows the levy as a deduction, the worker can file at the Labour Office and recover the amount. The dependent levy is the sponsor's personal liability and is paid through SADAD using bill code 077.

What is the difference between Tier 1 and Tier 2 levies?

The work permit levy is tiered by Saudization compliance. Tier 1, at SAR 700 per worker per month, applies when the number of expat workers in the establishment does not exceed the number of Saudi employees. Tier 2, at SAR 800 per worker per month, applies when expats exceed Saudis. The tier is determined per-establishment by the Qiwa headcount, not per-worker. Most large employers in the private sector run Tier 2 because Saudization quotas in many sectors push expat ratios above the parity line.

Who is exempt from the work permit levy?

Establishments holding a valid Industrial Licence are permanently exempt from the work permit levy under a Ministerial decision in force through end of 2025 and reaffirmed into 2026. Small establishments with four or fewer expat workers had a separate exemption that was phased out, so confirm the current status on the Qiwa portal before assuming any small-firm relief applies. Domestic workers fall under a separate Musaned regime with different fees, not covered by this calculator.

Is there a way to pay the levy quarterly?

Yes. The work permit levy can be paid quarterly, semi-annually or annually depending on the Mudad payment configuration the employer chooses. The total amount is the same; the cash flow timing differs. Some employers prefer the quarterly option because it spreads the levy across the year; others pay annually with the Iqama renewal to keep one large transaction. The Iqama renewal fee itself is paid as a single line tied to the renewal validity (12 or 24 months).

Does the dependent levy include children?

Children aged 18 and over count as chargeable dependents. Children under 18 are exempt from the SAR 400 per month dependent levy. Spouses always count regardless of age. Parents sponsored on the family file count. Premium Residency holders are exempt on the entire dependent file. Foreign wives of Saudi citizens with disability are exempt by a separate Royal Decree. The new-arrival grace gives every newly-arrived dependent the first 90 days fine-free; the meter starts on day 91. See the{' '}dependent fee calculator for the per-dependent math.

What if the Iqama renewal is filed late?

Late Iqama renewal carries a separate late-renewal fine of SAR 500 the first time and SAR 1,000 for repeat offences, applied through Absher when the late renewal is processed. The fine is on top of the standard renewal fee. The Iqama itself becomes invalid the day after expiry, which exposes the worker to deportation risk on any police check. Most employers configure Mudad reminders 90 days before expiry to avoid the fine entirely.

Can the levy be passed to the worker via salary structuring?

No. The employer paying the levy is explicit in the Ministerial Decision and any attempt to recover it from the worker through deductions or structured benefit reductions is a labour-law breach. A worker who finds the levy showing up as a salary deduction on the Mudad payslip should file at the Labour Office immediately; the recovered amount plus a penalty is paid to the worker. The dependent levy is the worker's own personal liability and that is the only Iqama-cost line that legally hits the worker's pocket.