The plan to renew the iqama for a short period of time will become more relevant with effect from March 14, when foreign workers in Saudi Arabia will be allowed to leave Saudi Arabia and change sponsorship without the sponsor's permission.
If a foreign worker changes sponsorship or requests an exit as soon as the sponsor renews the iqama after paying a one-year levy, it will incur huge losses to the employer. But if you renew the iqama after paying the levy for three months, it will not be a big burden for the sponsor.
At the same time, this system will be of great benefit to the workers. If the sponsor pays the full amount of the levy for one year and the worker needs exit or sponsorship as soon as the iqama is renewed, the worker will have to pay the contractual compensation. Naturally, the worker will have to pay a one-year levy. But if the iqama is renewed for three months, it is enough to think of compensation similar to the levy for a period of three months or less.
In addition to these, the new law is expected to benefit many expatriates who are currently stranded in the country due to the Corona crisis. Many of the natives were unable to renew their iqama and extend their re-entry period as they could not pay the large amount of levy on Kafeel in Saudi. However, with the introduction of the three - month levy, many have been able to contact their friends in Saudi Arabia to renew their Iqama for three or six months.
Saudi employers have been voicing concerns about the losses they will face when the law, which allows sponsorship to move freely and leave the country, was announced on March 14. Hopefully the new system will become a solution to all of that. Minister Engineer Ahmed Al Rajhi specially thanked the King for accepting the proposal of the Ministry of Human Resources to renew the Iqama four times.
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