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.

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