6 Ways How to overcome Dependent Fees in Saudi Arabia
Starting from 1st July, 2017, the government has start implementing the law for charging for dependent for all dependents under the expatriates. The fees this year is SR 100 per month per dependent. This will be until 1st July, 2018 when it will be increase to SR 200 and then SR 300 and SR 400 by year 2020.
We provide below ways to overcome the Dependent fees for expatriates and continue their peaceful life in Saudi Arabia.
The below options may not be possible for all but we list them to benefit those who can.
First method to avoid Dependent Fees is
- Move to a job in Government Sector
Expatriates working in government job and under the direct sponsorship of the government are exempted from dependent fee. Also, starting 2018 the government will start charging minimum SR 300 per month for each employee and it is assumed that this will not be applicable to government employees. However it is becoming more and more difficult to government job but not impossible. Also note that expatriates working in government sector through contractor are not eligible for such benefits.
- Negotiate House Rent
Many expatriates have reported that they have negotiated reduced house rents with landlords / renting office. Expatriates have shared stories where they have got reduction in rent of SR 4,000 to SR 5,000. See below snap shot of comment section in Arab News.
- Shift to house with lower Rent
Shifting to a house with lower rent. If you are living in locality which has high rents, you can considering moving to locality where rents are lowered. With introduction of rules are falling and it is guaranteed that you find houses with cheaper rents and possibly cheaper facilities. This is another way to offset the dependent fees expense for an year or two.
- Sharing of house
With the increased expenses, many expatriates who are having big houses are considering sharing homes. Some people are letting out part of their houses so that they can meet dependent fees expenses.
- Send Family back home
This is the logical step for many expatriates. Many have already sent their families back home anticipating implication of dependent fees rule. This way the saving can increase and expatriate can go back to home his home country soon. It is important in such case to have clear plan of saving and investment back home so that when you go back, you have assured sources for income.
- Alternate sources of income
There are ways to have alternate sources of income in Saudi Arabia without breaking the laws. We will be discussing them in a future article this week. Subscribe to our newsletter to know about this article once it is published.
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To know complete information about Dependent fee – Process, Payment procedure, iqama linking and Exit Visa issue see qSaudi – Dependent Fees Q & A