For companies in Saudi Arabia, securing top foreign talent hinges on understanding the Iqama process. However, understanding it is just the first step.
Executing the process itself can be a different ball game, often riddled with paperwork, navigating ever-changing regulations, and facing common pain points like:
- Time-consuming Procedures: Gathering documents, navigating government portals and securing approvals can be lengthy bureaucratic hurdles.
- Hidden Costs: Beyond the basic fees, unforeseen expenses like medical tests and additional translations can inflate the overall budget.
- Compliance Risks: Even minor errors in applications can lead to delays, penalties, and even visa cancellations, disrupting your workforce stability.
These challenges can be particularly daunting for new companies or those hiring a high volume of foreign workers.
The good news? This article is here to help. We will break down the Iqama sponsorship process for employers in Saudi Arabia, outlining the key steps, addressing potential roadblocks, and offering actionable insights to improve your experience.
What is An Iqama?
An Iqama is essentially a two-in-one document: it acts as a residence permit and a work authorization. This means that for any foreign national to legally live and work in the Kingdom, they need an Iqama sponsored by their employer.
Now, there are different types of Iqama, each catering to a specific situation. Here's a quick rundown of the most common ones:
- Work Permits (Labor & Professional Class): This is the bread and butter for most foreign workers. The Labor Class Iqama caters to those in skilled trades like construction or maintenance, while the Professional Class Iqama is for professionals with university degrees like engineers or doctors.
- Dependents Iqama: This allows family members of Iqama holders to reside in the Kingdom. It's important to note that sponsoring dependents can have additional requirements depending on the Iqama category of the primary worker.
- Domestic Worker Iqama: This is specifically for household employees like nannies or drivers. While the Domestic Worker Iqama offers some benefits like access to government hospitals, it doesn't allow sponsoring family visits.
- Government Employee Iqama: For foreign nationals working directly for the Saudi government sector, this Iqama grants access to specific government services and allows sponsoring family members.
- Business Iqama: This caters to a select group of individuals intending to establish businesses in Saudi Arabia. Obtaining it involves additional steps like registering with the Saudi Arabian General Investment Authority (SAGIA).
Understanding these different Iqama types is crucial for employers as the sponsorship process and requirements can vary depending on the category.
The Iqama Process for Employers
As an employer, think of Iqama as a three-stage journey: pre-employment, during employment, and post-employment.
A. Pre-employment: Launching the Iqama Process
1. Job Offer & Contract: It starts with a formal job offer and a clearly defined employment contract. This contract should be in Arabic and English, outlining the salary, benefits, and job description that meet the Ministry of Human Resources and Social Development (MHRSD) requirements.
2. Matching Job & Iqama Type: Understanding the different Iqama types (covered earlier) is crucial. The job type will determine the appropriate Iqama category (e.g., Labor Class for construction workers, Professional Class for engineers).
3. Ministry Approval & Visa Application: Once you've identified the right Iqama type, you'll need to secure approval from the Ministry of Labor. This often involves submitting the employment contract and other documents. With ministry approval, your foreign hire can apply for a work visa at the Saudi embassy or consulate in their home country.
B. During Employment: Maintaining Iqama Validity
1. Iqama Issuance & Medical Test: Upon arrival in Saudi Arabia, your employee will undergo a medical examination and collect their Iqama. Remember, the Iqama typically has a one-year validity.
2. Iqama Renewal: Iqamas typically have a one-year validity and require renewal before expiration. Your responsibility is to ensure timely renewals to avoid any complications for your employee.
3. Employer Responsibilities: Remember, sponsoring an Iqama comes with ongoing responsibilities. You'll need to make GOSI (social insurance) contributions and facilitate any necessary changes to the Iqama during employment (e.g., change of profession).
C. Post-employment: Concluding the Iqama Journey
1. Iqama Cancellation: Once the employment contract ends, you'll need to cancel your employee's Iqama. This involves notifying the relevant authorities and ensuring all outstanding dues are settled.
2. Transferring Sponsorship: In some cases, your employee might find a new job opportunity. With their consent, you can initiate an Iqama transfer process to their new sponsor. This involves working with the new employer to ensure a smooth handover of sponsorship responsibilities.
Remember, this is a simplified overview, and specific requirements can vary depending on the Iqama category. But with this roadmap in mind, you're well-equipped to tackle the Iqama sponsorship process for your foreign hires.
How to Know Your Employee's Iqama Status
A. Online Method: A Convenient Way to Check
The Ministry of Human Resources and Social Development website offers a user-friendly platform to check Iqama details. Here's a step-by-step guide:
- Access the Website: Head over to the provided link. The website is in Arabic by default, but the good news is that the website offers an English language option.
- Choose "Individuals": On the homepage, locate the "Individual Portal” and click on it.
- Enter Required Information: Here's where you'll need the employee's Iqama number and their date of birth (according to the Hijri calendar, which you can easily convert online if needed).
- Captcha Challenge: Once you've entered the other required details, you'll likely encounter a captcha verification step. Simply follow the on-screen instructions to confirm you're not a robot.
- View Iqama Status: After completing the captcha, you should see the employee's Iqama information displayed, including the all-important expiry date.
B. The SMS Option: A Quick and Easy Check
For those times when you need a quick status update, the SMS method offers a convenient alternative. Here's what you need to know:
- Required Information: You'll need the employee's Iqama number and the sponsor's ID number (yours as the employer).
- Contact Numbers: Depending on your employee's mobile service provider, send an SMS containing a specific code followed by the Iqama number and sponsor ID to the corresponding number:
- STC (Sawa): Text 12*SponsorID*Iqama to 888994.
- Mobily: Text 12*SponsorID*Iqama to 624444.
- Zain: Text 12*SponsorID*Iqama to 709444.
C. Offline Verification
While not recommended as the primary method, you can visit the nearest Jawazat (Passport Office) with the employee's passport and Iqama number. This option can be helpful in specific situations where online access is unavailable.
The SMS response will likely be in Arabic. So if you're not comfortable deciphering it, the online method might be a better choice.
While these methods provide a convenient way to check Iqama status, it's always a good practice to maintain a record of your employees' Iqama expiry dates within your HR system. This proactive approach ensures you can initiate the renewal process well in advance, avoiding any last-minute hiccups.
RemotePass: Your EOR Partner in KSA
Mountains of paperwork, confusing regulations, and the ever-present risk of non-compliance can quickly turn excitement about hiring top international talent into a headache.
But what if there was a way to simplify the Iqama process, freeing you to focus on what matters most – growing your business?
That's where RemotePass Employer of Record (EOR) steps in as your trusted EOR partner in KSA. As your EOR, we’ll act as a third-party company that legally acts as the employer for your workers in Saudi Arabia, handling all things Iqama sponsorship.
Here’s how we can help:
- Visa Processing Experts: Our team of visa specialists handles all aspects of visa processing, from initial application to final approval. We ensure your new hires get their Iqamas swiftly and efficiently, minimizing disruptions to your workflow.
- Compliance Confidence: Say goodbye to sleepless nights worrying about compliance. We stay up-to-date on the latest Iqama regulations and ensure your business adheres to all legal requirements.
- Reduced Workload for Your Team: Free your HR team from the administrative burden of Iqama sponsorship. We handle the paperwork, communication with authorities, and any potential roadblocks, allowing your team to focus on core HR functions.
Partnering with RemotePass EOR grants you access to:
- Faster Onboarding: Get your new hires working quickly with our streamlined visa processing and Iqama sponsorship services.
- Reduced Costs: Avoid the hidden costs associated with in-house sponsorship, such as legal fees and administrative overhead.
- Compliance Peace of Mind: Rest assured knowing your business is fully compliant with Saudi Arabian employment regulations.
Book a demo to learn more about how RemotePass' EOR services can streamline your Iqama sponsorship process.
Frequently Asked Questions
1. How long is an Iqama valid for?
The standard validity period for an Iqama is one year. However, some categories may have different durations.
2. What are the costs associated with Iqama sponsorship?
As an employer, you bear the following costs when sponsoring Iqama applications, including:
- Iqama issuance fee (around SAR 650, approx. USD 175)
- Work permit fee (varies based on your employer's Saudi employee ratio)
You might choose to cover these costs or deduct them from your employee’s salary.
3. Can you renew an Iqama for an employee while they’re outside KSA?
No, typically you cannot renew your employee’s Iqama if they’re outside Saudi Arabia.
4. How much are Iqama renewal fees in 2024?
Under the revised regulations, employers now have the option to pay for Iqama renewals in installments. The cost is directly tied to the chosen validity period. For instance, a one-year renewal remains at SAR 650, while a shorter, 3-month validity period comes with a reduced fee of SAR 163.
5. What is an employer of record in KSA?
An employer of record (EOR) in KSA is a company that acts as your legal employer for visa and Iqama sponsorship purposes. RemotePass is a prime example of an EOR in KSA.