If you’re an expatriate living and working in Saudi Arabia, having a valid Iqama (residence permit) is essential. Without it, you cannot legally live, work, or access most services in the Kingdom. Whether you’re new to Saudi Arabia or have been here for years, understanding the costs and process of obtaining or renewing an Iqama is crucial for staying compliant and avoiding penalties.
This guide breaks down all Iqama-related fees for 2026, explains who is responsible for paying them, outlines the renewal process, and covers recent regulatory updates that affect expatriates and employers.
What Is an Iqama?
An Iqama is the official residence permit issued by Saudi Arabia’s Ministry of Interior to expatriates. It serves as both proof of legal residency and work authorization in the Kingdom. Your Iqama is tied to your sponsoring employer (kafeel), and it’s required for nearly everything—opening a bank account, renting a home, accessing healthcare, registering for utilities, enrolling children in school, and even purchasing a SIM card.
Every expatriate must carry a valid Iqama at all times. Failure to do so can result in fines of up to SAR 1,000.
Why Is a Valid Iqama Important?
Maintaining a valid Iqama isn’t just a formality—it’s a legal requirement. If your Iqama expires or isn’t renewed on time, you could face escalating fines, frozen bank accounts, suspension of government services, and even deportation. Employers can also face penalties of up to SAR 100,000 per undocumented worker.
Types of Iqama in Saudi Arabia
Saudi Arabia issues several types of Iqama depending on your purpose of stay:
- Professional Class Iqama – For workers employed in companies, institutions, and professional roles
- Domestic Worker Iqama – For housekeepers, drivers, gardeners, private guards, and similar positions
- Dependent Iqama – For family members (spouse and children) of expatriate workers
- Business/Investor Iqama – For business owners and investors
- Student Iqama – For international students enrolled in Saudi institutions
- Premium Residency – Long-term residency without a sponsor (kafeel-free)
Iqama Issuance and Renewal Fees for 2026
The cost of issuing or renewing an Iqama depends on your job category, employment sector, and family situation. Below is a breakdown of the current fee structure:
1. Standard Iqama Renewal/Issuance Fee
The base fee for issuing or renewing an Iqama varies by worker category:
| Worker Category | Annual Fee (SAR) |
|---|---|
| Workers in companies, institutions, agricultural sector | 650 |
| Domestic workers (drivers, housekeepers, guards, etc.) | 600 |
| Dependents over 18 years old | 500 |
Flexible Renewal Options: Saudi Arabia now allows quarterly Iqama renewals. You can renew for 3, 6, 9, or 12 months. For example, a 3-month renewal costs approximately SAR 163, and 6 months costs SAR 325.
2. Work Permit Fee (Maktab Amal / Expat Levy)
Employers must pay a monthly work permit fee (also called the expat levy) for each foreign worker. This is the largest recurring cost associated with Iqama maintenance.
| Duration | Fee (SAR) |
|---|---|
| Monthly rate | 800 |
| 3 months (minimum payment period) | 2,400 |
| 6 months | 4,800 |
| 9 months | 7,200 |
| 12 months (annual) | 9,600 |
Important: This fee is paid by the employer. Saudi labor law prohibits deducting the work permit fee from an employee’s salary. If your company has more expatriates than Saudi nationals, the rate may be higher (up to SAR 800/month). Companies meeting Saudization requirements may pay SAR 700/month.
3. Dependent Fee
Expatriates who sponsor family members must pay a monthly dependent fee for each person:
| Duration | Fee per Dependent (SAR) |
|---|---|
| Monthly rate | 400 |
| 3 months | 1,200 |
| 6 months | 2,400 |
| 12 months (annual) | 4,800 |
Who Pays: The expatriate employee is typically responsible for paying dependent fees, unless the employment contract states otherwise. Some employers cover these costs as part of compensation packages.
90-Day Grace Period: Newly arrived dependents get the first 90 days without the monthly levy, after which the SAR 400/month fee applies.
4. Absher Business Service Fees (Effective January 2025)
The Ministry of Interior introduced service fees for value-added services through the Absher Business platform. These are separate from the standard annual fees:
| Service | Fee (SAR) |
|---|---|
| Iqama renewal (processing fee) | 51.75 |
| New Iqama issuance (processing fee) | 51.75 |
| Extending exit and re-entry visa | 103.50 |
| Final exit visa | 70.00 |
| Updating passport information | 69.00 |
| Requesting an employee report | 28.75 |
5. Additional Costs
| Category | Fee (SAR) |
|---|---|
| Health insurance (mandatory) | 500 – 2,000+ per year |
| Medical examination | 200 – 500 |
| Profession change | 1,000 |
| Adding dependent born outside Saudi Arabia | 2,000 |
Penalties for Late Renewal
Renewing your Iqama on time is critical. The penalties for late renewal have become stricter now:
| Offense | Penalty |
|---|---|
| First late renewal | SAR 500 fine |
| Second late renewal | SAR 1,000 fine |
| Third late renewal | SAR 1,000 fine + possible deportation |
Additional Consequences: An expired Iqama can result in frozen bank accounts, suspension of Absher access, inability to pay utilities, restrictions on employment, and travel bans.
Iqama Transfer Fees (Sponsorship Change)
Changing employers in Saudi Arabia requires transferring your Iqama sponsorship. Under recent labor reforms, this process has become easier through the Qiwa platform, and in some cases, employees can transfer without the current employer’s consent (such as after contract expiry or salary delays).
| Transfer Instance | Fee (SAR) |
|---|---|
| First transfer | 2,000 |
| Second transfer | 4,000 |
| Third and subsequent transfers | 6,000 (fixed) |
Who Pays: The new employer is responsible for paying sponsorship transfer fees.
Fee Exemptions and Special Cases
Industrial Sector Workers
In December 2025, the Saudi Cabinet permanently canceled the expatriate workforce levy for companies holding a valid Industrial License. This is a significant cost reduction for the manufacturing sector and is part of Vision 2030’s industrial growth strategy.
Small Business Exemptions
Small businesses with nine or fewer employees (including the Saudi owner) can qualify for work permit fee exemptions:
- Businesses registered with GOSI can exempt up to two foreign employees from the levy
- If the business includes at least one Saudi citizen employee (besides the owner), both registered with GOSI, it can exempt up to four expatriate employees
Domestic Workers
Work permit fees for domestic workers vary based on the employer’s status:
- For Saudi employers: Fees apply starting with the fifth domestic worker
- For foreign employers: Fees apply starting with the third domestic worker
- For premium residency holders: Fees apply starting with the fifth domestic worker
Who Is Responsible for Iqama Renewal?
Employer’s Responsibility
Under Saudi labor law (Article 40), employers are legally obligated to:
- Pay the standard Iqama renewal fee (SAR 650 or SAR 600 for domestic workers)
- Pay the work permit fee (up to SAR 9,600/year)
- Provide mandatory health insurance
- Ensure timely renewal before the Iqama expires
Employee’s Responsibility
While employers handle most of the process, employees should:
- Monitor their Iqama expiry date regularly
- Remind the employer well before the deadline
- Clear any traffic violations (unpaid fines block renewal)
- Pay dependent fees if sponsoring family members
- Update biometric data if required
How to Renew Your Iqama: Step-by-Step
Here’s a simplified guide to the renewal process:
Step 1: Ensure all prerequisites are met – valid passport, valid health insurance (verified on CHI platform), and updated biometric data
Step 2: Clear any outstanding traffic fines (unpaid fines must be settled before renewal)
Step 3: Pay the work permit fee (SAR 9,600 annually) via SADAD
Step 4: Pay the Iqama renewal fee (SAR 650) through online banking, ATM, or Absher
Step 5: Pay any dependent fees if applicable (SAR 400/month per dependent)
Step 6: The employer submits the renewal request through Absher Business or Muqeem portal
Step 7: Receive confirmation – the digital Iqama updates in Absher within 1-3 business days
New Feature: Dependents and domestic workers can now renew their Iqamas online through Absher and Muqeem platforms, even if they are outside Saudi Arabia.
Total Annual Cost Summary
Here’s an estimate of total annual Iqama-related costs for a typical expatriate employee:
| Cost Component | Amount (SAR) |
|---|---|
| Iqama renewal fee | 650 |
| Work permit fee (paid by employer) | 9,600 |
| Health insurance | 500 – 2,000 |
| Absher processing fee | 51.75 |
| Dependent fee (per dependent) | 4,800 |
| Total (single employee, no dependents) | 10,800 – 12,300 |
Key Takeaways
- Standard Iqama renewal costs SAR 650/year (SAR 600 for domestic workers)
- Work permit fees are SAR 800/month (SAR 9,600/year), paid by employers
- Dependent fees are SAR 400/month per person (SAR 4,800/year)
- Late renewal penalties start at SAR 500 and can lead to deportation
- Employers are legally responsible for Iqama and work permit fees
- Industrial sector workers are now permanently exempt from the expat levy
- Always renew at least 3 days before expiry to avoid complications
Conclusion
Every expat in Saudi Arabia should know their Iqama fees and keep track of renewal deadlines. The good news is that platforms like Absher and Muqeem make the process easier.
Check your Iqama expiry date regularly, communicate with your employer in advance, and ensure all documentation is in order. By planning ahead, you can avoid unnecessary fines and ensure a smooth residency experience in the Kingdom.
Disclaimer: This guide is for informational purposes only. Fee structures and regulations may change. Always verify current fees through official government platforms (Absher, Muqeem, MHRSD).