In the wake of the workers’ dissent over the payment of labor permit fees, the Council of Saudi Chambers has urged government agencies to reimburse the contracting companies the annual fee of SR 2,400 per employee.
As of Nov. 15, Saudi employers with a work force of less than 50 percent Saudi nationals must pay a monthly fee of SR 200 for each extra foreign worker.
In January, more than 7,000 Asian workers from Bangladesh, Pakistan, India and the Philippines ceased work in Riyadh in protest against the nonpayment of their salaries and also because their sponsors refused to pay the SR 2,400 levy to the Labor Department.
Saudi employers are already annually paying SR 500 for a residency permit, SR 250 to the Human Resources Development Fund, SR 100 for a work permit and SR 600 for social insurance for each employee.
The construction workers belonged to a number of private companies that have been sub-contracted by the Ministry of Finance to implement various projects as part of King Abdullah Financial district in Al-Aqeeq.
An official from the council’s national committee for contractors said here yesterday that the work permit fee has to be paid by the government agencies and not the contracting companies. Therefore, he said that the CSC has urged the contracting companies neither to pay these fees nor to charge them on the poor workers.
The CSC yesterday sent a circular to all contracting companies about this decision which has been taken in agreement with the public sector.
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