• Compensating the facility contracting with the government for labor fees

    11/09/2022

    ​Gentlemen/ Members of the Chamber

    Greetings,

    Asharqia Chamber presents you with its best regards and informs you of receiving the Federation of Saudi Chambers letter no. (44500534) dated (11/2/1444 AH), which includes a reference to the union’s letter No. (42503471) dated (29/8/1442 AH), and letter No. (43500921) and dated ( 6/3/1443 AH) Regarding the request to establish a mechanism to compensate the contracting establishments for all damages for the increase in the adjustment of the wages of Saudi employees and to raise the percentage of their localization for existing contracts and contracts that were in the awarding stage. 

    Accordingly, the Union would like to note that it has received the circular of the Ministry of Finance for all government agencies No. (2367) and dated (18/1/1444 AH), in which reference is made to Cabinet Resolution No. (375) and dated (10/7/1439 AH) The judge agrees to compensate the establishment contracting with the state for the increase in the financial consideration, in an amount equal to what each establishment pays in terms of financial compensation for its expatriate workers that meet the Saudis or exceed them by what was stated in the decision, and to the Ministry’s circular No. (12680) dated (8/ 2/1441), On enabling contracted enterprises to submit their applications through an accreditation platform, provided that the State owner of the project certifies the authenticity of the data submitted by the applicant and the Ministry's circular No. (66361) dated (27/8/1441), which includes the government authority's complete responsibility for reviewing the contractor's applications and documents entered into.


    Since the Ministry has completed the development of the online portal to compensate State-contracted enterprises for the increase in employment fees for all contracts concluded with contractors in coordination with the Ministry of Human Resources and Social Development, It was fed with contractors’ employment data from the reality of the actual payment processes with the Ministry of Human Resources and Social Development so that the facility cannot be compensated for more than what it paid for the increase in the financial compensation in the fiscal year, and the Ministry of Finance noted the weakness in the receipt of compensation requests by the authorities through the electronic portal.

    For more information and to view the file of the organization’s rules for auditing and accreditation work to compensate for the visit in exchange for the expatriate workers, you can visit the Asharqia Chamber electronic website: (www.chamber.org.sa).



    Sincerely yours

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