Labor Minister Adel Fakeih. (SPA)

The Labor Ministry has agreed to compensate government contractors who had signed agreements before 1/1/1434H when it imposed the SR2,400 expat levy on companies that employ more foreigners than Saudis.

“Labor Minister Adel Fakeih has endorsed the plan for the Human Resource Development Fund (HRDF) to pay the compensation to the affected contractors,” said Abdullah bin Shakir Al-Ghalib, secretary-general of the Makkah Chamber of Commerce and Industry.

“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),” Al-Ghalib said.

Abdul Rahman Al-Zamil, president of CSC, thanked the ministry for taking the decision as the deal they had signed with the government had not covered the SR2,400 levy, which they had to pay for each foreign worker.

“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,” Al-Zamil told Arab News.

He also commended the Labor Ministry for considering the views of business leaders and experts before adopting any new law.

However, he pointed out that only 5,000 of the more than 1.3 million business owners participate in such discussions on the ministry’s website.

Asked why the ministry was imposing the levy on contracting companies where Saudis are not interested to work, Al-Zamil said it was to mobilize funds required for training Saudis and paying part of their salaries.

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