Iqama and Work Permit Costs in Saudi Arabia 2026: Practical Guide with Real Numbers
May 31, 2026 | Motaded Limited Team
If you're searching for a clear answer to "how much does an Iqama and work permit cost annually in Saudi Arabia?", this guide is written for you. Whether you're a business owner calculating the cost of each worker before hiring, a resident wanting to understand what your sponsor pays, or a new investor planning an HR budget — you'll find here the actual figures for 2026 from official sources, with no exaggeration and no fabricated numbers. Every figure in this article is documented, and every case is explained with a practical example and an organized table.
First: Work Visa, Work Permit, Iqama — What's the Difference?
Many people confuse these three terms, even though they are entirely different documents issued by different authorities. The following table clarifies the difference precisely:
Document | Issuing Authority | Purpose |
|---|---|---|
Work Visa | Qiwa Platform + Professional Accreditation (pacc.sa) | Permission to enter Saudi Arabia for work (one-time before arrival) |
Work Permit | Ministry of Human Resources (Qiwa Platform) | Permission to practice the profession inside the Kingdom (annual) |
Iqama (Residency ID) | General Directorate of Passports | Proof of legal residency in the Kingdom (annual) |
Financial Compensation | Ministry of Human Resources | A financial fee tied to the work permit (annual) |
An expatriate worker needs all three together: the visa to enter the Kingdom (one-time), then the work permit and Iqama to maintain their legal status (annually). Any disruption in one of them disrupts the rest.
Second: What is QVP and Its Role in Visa Issuance?
QVP (Qualified Visa Program) is the certified professional accreditation program handled by the Professional Accreditation Authority through its official website pacc.sa. This program is a mandatory requirement for issuing work visas for all nationalities, and cannot be bypassed. Many establishments are surprised by this step when recruiting for the first time because it adds to the procedural sequence.
What Happens in QVP?
Step | What Happens |
|---|---|
1 | Verification of the worker's academic and professional certificates through pacc.sa |
2 | Authentication of certificates according to nationality and profession requirements |
3 | Initial medical examination in the worker's home country before arrival |
4 | Criminal record verification for the worker |
5 | After completing these steps, the required accreditation is issued for the visa to be stamped at the Saudi Embassy |
Without QVP accreditation from pacc.sa, the Saudi Embassy will not stamp the worker's visa, and therefore the worker cannot enter the Kingdom. This step usually takes from one to three weeks depending on the nationality and profession.
Third: Worker Costs Only (Excluding Dependents)
This section covers only the costs of an individual worker. Many workers come to Saudi Arabia without intending to bring dependents, either because they are unmarried or because they chose to leave their families in their home country. The following tables apply specifically to them.
3.1 Initial Worker Costs (One-Time During Recruitment)
Item | Cost | Authority |
|---|---|---|
| Work Visa Fees | SAR 2,000 | Qiwa |
| QVP Fees (Professional Accreditation) | Varies by country | pacc.sa |
| Medical Examination in Saudi Arabia | SAR 250 - 500 | Certified Centers |
| Medical Insurance (First Year) | Variable by category | Insurance Companies |
| First Iqama Issuance | SAR 650 | Passports |
3.2 Annual Recurring Worker Costs
Item | Annual Cost | Authority |
|---|---|---|
| Iqama Renewal | SAR 650 | Passports |
| Work Permit (Fixed Fee) | SAR 100 | Qiwa |
| Financial Compensation (800/month × 12) | SAR 9,600 | Qiwa |
| Social Insurance (paid by employer) | 2% of salary | GOSI |
| Medical Insurance (Renewal) | Variable | Insurance Companies |
3.3 First Year Total for Worker Alone
Item | Cost |
|---|---|
| Work Visa | SAR 2,000 |
| QVP (Average) | SAR 1,500 |
| Medical Examination | SAR 400 (average) |
| First Iqama Issuance | SAR 650 |
| Work Permit | SAR 100 |
| Annual Financial Compensation | SAR 9,600 |
| Total (Excluding Medical Insurance) | Approximately SAR 14,250 |
Important note: Social insurance (2% of an expatriate worker's salary) is paid in full by the employer and is not deducted from the worker's salary. This is a fundamental difference from social insurance for Saudi workers, where the worker pays 9.75% of their salary in addition to 11.75% from the employer.
Fourth: Dependent Sponsorship Costs (Completely Separate from the Worker)
If the worker wishes to bring their family (spouse and children) to Saudi Arabia, this is treated as a completely independent file from the worker's own recruitment. It does not happen at the same time and does not go through the same platform. The costs and procedures are separate, and the timing is precisely defined.
4.1 Conditions for Sponsoring Dependents
Condition | Details |
|---|---|
Worker's Iqama Issued | The worker must have entered Saudi Arabia and had their Iqama actually issued |
Issuing Platform | Absher Platform (Ministry of Interior) — NOT Qiwa |
Approval Authority | Ministry of Interior — through its Recruitment Office |
In-Person Review | A personal visit to the Recruitment Office may be required to submit original documents |
4.2 Required Documents for Dependent Sponsorship
Document | Notes |
|---|---|
| Marriage Certificate | Authenticated by the Ministry of Foreign Affairs in the worker's home country and the Saudi Embassy |
| Children's Birth Certificates | Authenticated for each child to be sponsored |
| Worker's University Degree | The worker is required to hold a university qualification for sponsorship |
| Valid Worker's Iqama | The worker's Iqama must be issued and fully activated |
| Documented Employment Contract | Documented in Qiwa and proves the qualifying salary for sponsorship |
4.3 Costs of Dependent Sponsorship (Per Dependent)
Item | Cost | Authority |
|---|---|---|
| Dependent Entry Visa (fixed for all nationalities and professions) | SAR 2,000 | Absher |
| Dependent Medical Examination | SAR 250 - 500 | Certified Centers |
| Dependent Medical Insurance (Annual) | Variable | Insurance Companies |
| First Dependent Iqama Issuance | SAR 650 | Passports |
| Dependent Iqama Renewal (Annually After Year 1) | SAR 650 | Passports |
| Annual Companion Fees (400/month × 12) | SAR 4,800 | Qiwa |
4.4 First Year Total for One Dependent
Item | Cost |
|---|---|
| Dependent Entry Visa | SAR 2,000 |
| Dependent Medical Examination | SAR 400 (average) |
| First Dependent Iqama Issuance | SAR 650 |
| Annual Companion Fees | SAR 4,800 |
| Total per Dependent (Excluding Insurance) | Approximately SAR 7,850 |
Each additional dependent adds approximately the same cost. If a worker wants to sponsor a wife and three children (4 dependents), the total reaches approximately SAR 31,400 in the first year from the dependents section alone.
Fifth: Worker Recruitment Procedure Step-by-Step
# | Step | Authority / Platform |
|---|---|---|
1 | Issue work visa (SAR 2,000) | Qiwa Platform |
2 | Apply for QVP professional accreditation | pacc.sa |
3 | Stamp the visa after QVP approval | Saudi Embassy in worker's country |
4 | Worker enters the Kingdom with the stamped visa | Entry ports |
5 | Medical examination inside Saudi Arabia (SAR 250-500) | Certified centers + Efadah system |
6 | Purchase medical insurance | Certified insurance companies |
7 | Pay financial compensation and work permit fees | SADAD |
8 | First Iqama issued electronically (within 24 hours) | Passports → Absher + Muqeem |
Sixth: Dependent Sponsorship Procedure Step-by-Step
This stage begins only after the worker's first Iqama is issued. It cannot begin before that, even if all documents are ready.
# | Step | Authority / Platform |
|---|---|---|
1 | Worker logs into their account and submits a dependent sponsorship application | Absher Platform |
2 | Upload documents (marriage certificate, birth certificates, university degree) | Absher Platform |
3 | In-person review may be required to submit original documents | Recruitment Office (Ministry of Interior) |
4 | Pay dependent entry visa fees (SAR 2,000 per dependent) | SADAD |
5 | Receive approved visas | Absher |
6 | Stamp visas at the Saudi Embassy in dependents' country | Saudi Embassy |
7 | Dependents enter the Kingdom | Entry ports |
8 | Medical examination for dependents inside Saudi Arabia | Certified centers |
9 | Purchase medical insurance for dependents | Insurance companies |
10 | Issue each dependent's Iqama (SAR 650 × number of dependents) | Passports → Absher |
Seventh: Small Establishment Exemption from Financial Compensation
Point | Details |
|---|---|
| Who is exempt? | Saudi-owned establishments only (Saudi owner) |
| Who is NOT included? | Foreign companies and Saudi-foreign partnerships |
| When does it end? | January 1, 2027 |
| After exemption ends | SAR 9,600 annually unified across all establishments without exception |
Conditions to Benefit from the Exemption
Condition | Details |
|---|---|
Ownership | Saudi-owned establishment (sole proprietorship or company with Saudi owner) |
Number of Workers | 9 workers or fewer in the establishment |
Dedication | Owner is dedicated to their establishment (does not work elsewhere) |
Social Insurance | Owner is registered in social insurance as an employer |
Difference Between Exempt and Non-Exempt
Item | Exempt Establishment | Other Companies |
|---|---|---|
| Work Permit | SAR 100 | SAR 100 |
| Annual Financial Compensation | SAR 0 | SAR 9,600 |
| Annual Total per Worker | SAR 100 | SAR 9,700 |
For more details on this transition, review our previous alert on the end of work permit fees exemption.
Eighth: Iqama Renewal — Conditions, Procedures, and Penalties
Renewal Conditions
Condition | Details |
|---|---|
| Fees | Pay all dues (SAR 650 + financial compensation + work permit) |
| Medical Insurance | Pay the annual medical insurance before renewal |
| Violations | No accumulated traffic violations (blocks electronic renewal) |
| National Address | Worker's national address activated on the Sabl platform |
| Employment Status | Active employment status on Qiwa |
Renewal Authority by Type
Category | Renewal Platform |
|---|---|
| Workers in Establishments | Qiwa + Muqeem (handled by employer) |
| Domestic Workers | Absher Individual (handled by sponsor) |
| Dependents and Companions | Absher (handled by the worker) |
Late Renewal Penalties
Case | Penalty |
|---|---|
| First-time late renewal | SAR 500 |
| Second-time late renewal | SAR 1,000 |
| Delay over 3 months | Escalating procedures + potential deportation |
Ninth: Work Permit and What Happens When It Expires
The work permit differs from the Iqama in a fundamental way: the Iqama is an identity document carried by the worker, while the work permit is a professional authorization linked to the establishment and the registered profession. Any change in employer or profession requires updating the work permit.
When to Renew the Work Permit?
Case | When to Renew? |
|---|---|
| Regular Annual Renewal | At least one month before expiration |
| Worker Profession Change | Immediately upon the change decision |
| Worker Transfer to Another Establishment | Automatic with the transfer process |
What Happens If the Work Permit Expires Without Renewal?
This is a critically important point in 2026. Qiwa platform officially announced that starting June 30, 2026, workers will be automatically dropped from establishment records if their work permits remain expired for 3 months or more. The employer then bears all accumulated financial obligations on the worker throughout the expiration period.
Tenth: Special Cases to Know
Case | Details |
|---|---|
| Sponsorship Transfer (Service Transfer) | The worker can transfer services to a new employer without the current sponsor's approval in specific cases (3-month salary delay, long-expired work permit). The new employer pays transfer fees and handles renewals. |
| General Manager Visa | For newly established companies, the general manager needs a special work visa granting administrative privileges over the company's government and banking accounts. Issued through Qiwa immediately after Commercial Registration. |
| Premium Residency (For Investors) | Saudi Premium Residency program grants residency without a sponsor, real estate ownership rights, and business operations. Requirements include proof of financial solvency and clear criminal record. |
| Periodic Medical Examination | Some professions (medical, food, educational) require periodic medical examinations beyond the recruitment examination. Cost is on the establishment or worker depending on agreement. |
Eleventh: Frequently Asked Questions
What is the actual total cost for an expatriate worker alone in the first year?
For non-exempt companies: approximately SAR 14,250 for the first year, including: work visa (2,000) + QVP (1,500 average) + medical examination (400 average) + Iqama issuance (650) + work permit (100) + financial compensation (9,600). Add medical insurance and social insurance 2% of salary paid by the employer.
How much does it cost to sponsor one dependent after the worker arrives?
Approximately SAR 7,850 for the first year per dependent: dependent entry visa (SAR 2,000 fixed) + medical examination (400) + first Iqama issuance (650) + annual companion fees (4,800). Add medical insurance for the dependent.
What is QVP and who issues it?
QVP (Qualified Visa Program) is the certified professional accreditation program from the Professional Accreditation Authority through its official website pacc.sa. It includes academic and professional certificate verification, initial medical examination, and criminal record verification. Without QVP accreditation, the Saudi Embassy will not stamp the worker's visa.
Are dependent visas issued through the Qiwa platform?
No. Dependent visas are issued through the Absher platform (Ministry of Interior), not Qiwa. The worker logs into their Absher account and submits a dependent sponsorship request, and an in-person visit to the Recruitment Office (Ministry of Interior) may be required to submit original documents.
Can the worker enter the Kingdom with their dependents at the same time?
No. The worker must enter first, have their Iqama issued, then submit a dependent sponsorship request through Absher, then the dependent sponsorship stage begins separately. The only exception: if the worker already holds a Saudi Iqama and applies for sponsorship directly.
What documents are required for dependent sponsorship?
Marriage certificate authenticated by the Ministry of Foreign Affairs in the worker's country and the Saudi Embassy, authenticated children's birth certificates, the worker's university degree (a university qualification is required for sponsorship), valid worker's Iqama, and a documented employment contract proving the qualifying salary.
Is the 2% social insurance deducted from the expatriate worker's salary?
No. Social insurance for expatriate workers (2% of salary) is paid in full by the employer and is not deducted from the worker's salary. This is a fundamental difference from the Saudi worker who pays 9.75% of their salary in addition to 11.75% from the employer.
Does the dependent entry visa cost vary by nationality or profession?
No. The dependent entry visa fee is SAR 2,000 fixed for all nationalities and all sponsor professions. The only difference may be in QVP and authentication fees that vary by country.
As a foreign investor, can I benefit from the small establishment exemption?
No. The exemption is exclusively for Saudi-owned establishments. Foreign companies or Saudi-foreign partnerships do not benefit from this exemption even if the number of workers is less than 9. The exemption ends entirely on January 1, 2027 even for Saudi establishments.
How long does it take to issue the first Iqama for a new worker?
After the worker enters the Kingdom and completes all procedures (medical examination, insurance, payment of financial compensation and work permit), the Iqama is issued electronically within 24 hours and appears immediately on the Absher and Muqeem platforms.
How does Motaded Limited help in managing these costs?
The Motaded Limited team handles the complete management of the workforce file in your establishment: issuing and renewing visas, dealing with QVP through pacc.sa, tracking expiration dates for permits and Iqamas, executing renewals through Qiwa, Muqeem, and Absher, sponsoring dependents, dealing with social insurance, calculating expected costs, and managing violations and penalties.
Don't Let Iqama and Work Permit Costs Surprise You
The difference between an establishment that plans its costs precisely and one that gets surprised by HR bills can reach tens of thousands of riyals annually. Every worker in your establishment has a compliance file that must be tracked: visa, QVP, work permit, Iqama, medical insurance, social insurance, and if they sponsor dependents there's a separate file for each dependent. Delay in any item opens the door to the rest.
At Motaded Limited, we manage these files for dozens of Saudi and foreign establishments. We provide you with an accurate cost calculation before hiring, follow up on deadlines, renew electronically, and alert you before any fee becomes due to avoid penalties.
Book a Meeting to Review Your Workforce File
Reach out at info@motaded.com.sa or book a meeting with our team. In one session, we provide you with an accurate calculation of expected costs for each employee and their dependents if any, an organized renewal plan, and complete management of your administrative file.
