The Legal Mandate: Article 33 and the Work Permit Ecosystem
Under Article 33 of the Saudi Labor Law (Royal Decree No. M/51), no non-Saudi citizen may engage in commercial employment within the Kingdom without a valid work permit (Rukhsa Amal) issued by the Ministry of Human Resources and Social Development (MHRSD).
Historically managed through local labor offices and paper Khitab Rukhsa Amal (KRK) numbers, all work permit issuance, validation, and renewal services are now centralized exclusively within the Qiwa Platform.
Qiwa Work Permit Generation
Employer audits Nitaqat tier and generates 3, 6, 9, or 12-month digital work permit
SADAD Biller 050 Settlement
Employer pays unified invoice (SAR 100 base fee + Expat Levy) via online corporate banking
NIC & Jawazat Automatic Sync
National Information Center confirms payment within seconds; Muqeem portal unlocks
Iqama Card Renewal
Employer logs into Muqeem or Absher Business to print updated physical residency permit
Expat Levy (Muqabil Mali) & Work Permit Fee Structure
The total cost of a work permit depends directly on the establishment's Saudization ratio under the Nitaqat system. The statutory levy is calculated based on whether the number of non-Saudi workers exceeds or is equal to/less than Saudi national employees:
| Work Permit Duration | Expat Count > Saudi Count (SAR 800/mo) | Expat Count ≤ Saudi Count (SAR 700/mo) | Base Work Permit Fee | Total Payable (Higher Tier) | Total Payable (Lower Tier) |
|---|---|---|---|---|---|
| 3 Months (Quarterly) | SAR 2,400 | SAR 2,100 | SAR 25 | SAR 2,425 | SAR 2,125 |
| 6 Months (Semi-Annual) | SAR 4,800 | SAR 4,200 | SAR 50 | SAR 4,850 | SAR 4,250 |
| 9 Months (Three-Quarter) | SAR 7,200 | SAR 6,300 | SAR 75 | SAR 7,275 | SAR 6,375 |
| 12 Months (Full Annual) | SAR 9,600 | SAR 8,400 | SAR 100 | SAR 9,700 | SAR 8,500 |
Micro-Enterprise Exemption (*Mansha'at Sagheera*):
Small enterprises with 9 employees or fewer where the Saudi owner is registered in GOSI as a full-time working manager are exempt from the Expat Levy for up to 2 to 4 expatriate workers, paying only the baseline SAR 100 annual work permit fee, subject to current MHRSD micro-business regulations.
Statutory Grace Periods & The 90-Day Unilateral Transfer Rule
Maintaining active work permit validity is the sole legal responsibility of the sponsoring employer. Expatriate workers are legally protected against employer negligence through strict statutory timelines:
Statutory Safeguards & Rights Protection
Mandatory protections enforced by MHRSD & Saudi Labor Law
If an Iqama remains unrenewed due to work permit non-payment:
How to Check Qiwa Work Permit Status Online
Both employers and employees have distinct digital pathways to inspect work permit validity.
Method 1: Employee Individual Portal Verification (Qiwa Individual)
- Work Permit Number (*رقم رخصة العمل*): Unified national serial number.
- Issue Date & Expiration Date: Displayed in both Gregorian and Hijri formats.
- Status Indicator: Valid (سارية), Expired (منتهية), or Under Process (قيد الإجراء).
Method 2: Employer Qiwa Business Audit
- Green: Valid for more than 30 days.
- Yellow: Expiring within 30 days (renewal actionable).
- Red: Expired (immediate liability and transfer risk).
Step-by-Step: How to Issue & Renew Work Permits in Qiwa Business
Only authorized Government Relations Officers (GRO), company owners, or designated HR managers on Qiwa Business can execute permit renewals:
Step 1: Select the Work Permit Management Service
- Confirms the establishment's Nitaqat color is Medium Green, High Green, or Platinum (Red entities are blocked from issuing permits).
- Validates that the Commercial Registration (CR) and Balady municipal licenses are active.
Step 2: Select Employees and Renewal Duration
- 3 Months (ideal for short-term project workforce management)
- 6 Months
- 9 Months
- 12 Months
Step 3: Generate the SADAD Payment Number
How to Pay the Work Permit Invoice via SADAD
Work permit invoices cannot be paid at bank teller counters with cash; they must be settled through digital banking (Al Rajhi, SNB AlAhli, Riyad Bank, etc.):
Access Banking Portal
Log in to corporate or personal online banking / mobile application
Select SADAD Biller
Navigate to SADAD Bills → Government Services → Biller Code 050 (MHRSD)
Enter Invoice Number
Input the 14-digit Qiwa SADAD number into the bill payment field
Execute Payment
Confirm payment via SMS OTP; receipt is logged instantly across MHRSD systems
SADAD Biller Identification:
Ensure you select Biller 050: Ministry of Human Resources and Social Development (وزارة الموارد البشرية والتنمية الاجتماعية).
Do not attempt to pay work permit invoices under Jawazat Biller 099; Biller 099 is reserved exclusively for the Ministry of Interior Iqama issuance fee (SAR 650/year).
Common Work Permit Renewal Errors & Troubleshooting
| Error Code / Message | Root Cause | Mandatory Resolution |
|---|---|---|
| `ERR-WP-NITAQAT-RED` | Establishment has fallen into Red or Low Yellow Nitaqat tier. | Hire Saudi nationals to elevate Saudization ratio above the minimum sector threshold before re-attempting. |
| `ERR-WP-GOSI-SYNC` | Discrepancy between GOSI registered salary and active Qiwa contract. | Synchronize employee wage data in Mudad Wage Protection System (WPS) and ensure zero pending wage violations. |
| `ERR-WP-CR-EXPIRED` | Sponsoring company Commercial Registration is expired in MC portal. | Renew commercial registration with Ministry of Commerce; data syncs to Qiwa within 2 hours. |
| `SADAD Invoice Expired` | The 14-digit SADAD payment code was not paid within the 14-day validity window. | Cancel the pending request in Qiwa Business and re-generate a fresh SADAD bill number. |
| `Payment Made but Muqeem Blocked` | Iqama renewal fee (Biller 099 - SAR 650) has not been paid to Jawazat. | Pay the separate Jawazat Iqama renewal fee; work permit payment alone does not renew the Iqama card. |
Frequently Asked Questions (FAQ)
Can an employee pay their own Qiwa work permit fee?
Under Article 40(1) of the Saudi Labor Law, the sponsoring employer is statutorily obligated to bear all fees related to the recruitment, work permit issuance (Rukhsa Amal), residency permit (Iqama), and their renewals. Deducting these costs from the worker's salary is strictly illegal.
How long does it take for work permit payment to reflect in Muqeem?
Payment reflection is automated through the National Information Center (NIC). In over 95% of cases, the payment reflects within 5 to 15 minutes. Once reflected, the employer can immediately complete the Iqama renewal on the Muqeem portal.
What happens if the employer does not renew the work permit after 90 days?
Under Qiwa's labor mobility guidelines, if an employee's work permit or Iqama has expired for more than 90 days, the employee gains the legal right to transfer sponsorship to any new company without requesting a release from their current employer.
Can an employer renew a work permit for 3 months only?
Yes. Under recent ministerial updates, employers can select quarterly (3-month), semi-annual (6-month), 9-month, or annual (12-month) renewal terms. This flexibility applies to both the work permit fee and the expat levy.
Does a red-status company prevent employees from renewing their work permits?
Yes. Establishments in the Red Nitaqat category cannot issue or renew work permits for expatriate staff. This regulatory block encourages workers to initiate an immediate non-consensual employer transfer to compliant Green or Platinum companies.
Was this compliance guide helpful?
Your feedback helps our legal editorial team maintain authoritative KSA guidance.
Advocate High Court (Punjab Bar Council) and ATT GCC VAT Certified Specialist. Author of comprehensive regulatory commentaries on Saudi corporate law, ZATCA e-invoicing protocols, and Labor Reform Initiatives.