The Financial Burden of Dependent Fees on Low-Income Families in Saudi Arabia-Expat Dilemma
The Saudi government introduced dependent fees on expatriates families in 2017 as a way to boost state revenues and reduce the number of expatriates in the country. The fees since 2020 is SR 400 per dependent per month which was gradually increased from SR 100 per/person/month in 2017.
For low-income families, the dependent fees can have a devastating financial impact. For example, a family earning SR 15,000 per month would have to pay SR 2000 per month in dependent fees if they have a spouse and 4 children. This represents a 13.33% increase in their monthly expenses, and it could force them to make impossible choices about how to allocate their income.
The dependent fees could also have a negative impact on the standard of living for low-income families. For example, they may have to cut back on their spending on food, clothing, or transportation. They may also have to send their children to less expensive schools or even withdraw them from school altogether.
In addition to the financial impact, the dependent fees could also have a social impact on low-income families. For example, they may have to live in smaller or less desirable housing. They may also have to find ways to care for their children without the help of extended family members.
The dependent fees are a controversial issue in Saudi Arabia. Some people believe that they are a necessary measure to reduce the number of expatriates in the country and to boost state revenues. Others believe that they are unfair and that they will have a negative impact on low-income families.
It is too early to say what the long-term impact of the dependent fees will be. However, it is clear that they will have a significant financial impact on low-income families in Saudi Arabia.
Here are some of the ways that low-income families can cope with the financial impact of dependent fees:
- Reduce their spending on non-essential items.
- Find a job with higher salary.
- Move to a less expensive area.
- Send their children to less expensive schools or even withdraw them from school altogether.
- OR send them to their home country altogether.
The dependent fees are a challenge for low-income families in Saudi Arabia. However, there are ways to cope with the financial impact. With careful planning and financial assistance, low-income families can still provide a good life for their children.
How much will an expat family pay in 20 years
For example a family with 4 children staying in Saudi Arabia for 20 years, they will have to shell out SR 480,000/– that is USD 128,000/-. If calculated in Indian Rupees it will be INR 1.05 crore and in Pakistani Rupees PKR 3.52 crores. This amount is just for resident permit (Iqama) to stay in the country without any benefits.
Only time will tell what the future holds for dependent fees in Saudi Arabia. However, one thing is clear, the fees will continue to have a significant impact on low-income expatriate families in the country.
Family separation:
The people who cannot afford the fees should think of leaving the country as they will save a lot of money. This may have psychological impact on family due to separation. Or move to a different country where there is healthier and prosperous family life.
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