Key Concerns Raised in the High-Level Meeting
In a significant step toward strengthening labor relations, Bangladesh and Saudi Arabia recently held discussions to address key concerns affecting Bangladeshi migrant workers in the Kingdom of Saudi Arabia (KSA). The primary focus of these talks was the renewal fees for Iqama, the mandatory residency permit required for all foreign workers in the country.
With over 2.8 million Bangladeshi workers currently employed in Saudi Arabia, this discussion was of utmost importance as it impacts the livelihoods of thousands of expatriates and their families back home. In addition to Iqama-related concerns, the two countries also explored broader labor issues, including employer accountability, worker rights, and financial burdens faced by Bangladeshi migrants.
Understanding the Iqama: The Lifeline for Migrant Workers
The Iqama is an essential document that allows foreign workers to live and work legally in Saudi Arabia. It is issued by the Saudi Ministry of Interior through the employer and must be renewed annually to maintain the legal status of the worker.
Current Iqama Renewal Fees
As of 2024, the standard Iqama renewal fee is SAR 650 per year (approximately BDT 19,000). This amount is separate from other mandatory fees, including:
- Expat Levy (Maktab Amal fee) – Paid by employers, this fee varies based on the company’s percentage of Saudi employees.
- Medical Insurance Fees – Required for all foreign workers, costs vary depending on the policy.
For companies where less than 50% of employees are Saudi nationals, the Expat Levy fees are:
- 3 months: SAR 2,400
- 6 months: SAR 4,800
- 9 months: SAR 7,200
- 12 months: SAR 9,600
For companies with a higher percentage of Saudi employees, the fees are slightly lower. However, in many cases, employers fail to pay these fees on time, resulting in complications for migrant workers, including visa cancellations, deportation risks, and difficulty accessing basic services.
The Financial Burden on Bangladeshi Migrant Workers
For many Bangladeshi expatriates, the Iqama renewal process is a significant financial burden. Although the law requires employers to cover the renewal costs, many workers end up paying these fees themselves due to non-compliance by employers or delays in processing.
A large number of Bangladeshi workers take out loans to migrate to Saudi Arabia, often paying high recruitment fees ranging from BDT 300,000 to BDT 600,000 (approximately SAR 10,000 to SAR 20,000). Upon arrival, they are expected to repay these debts while managing their daily expenses and sending remittances to their families. The added cost of Iqama renewal fees and other expenses increases financial strain, making it difficult for workers to achieve their financial goals.
A recent survey by the Bangladesh Bureau of Statistics (BBS) found that nearly 60% of Bangladeshi workers in Saudi Arabia face economic hardship due to wage deductions, unpaid salaries, and additional costs imposed by their sponsors.
Major Issues Discussed in the Meeting
During the meeting, Bangladeshi officials highlighted several pressing concerns:
1. High Iqama Renewal Fees and Employer Responsibility
- Bangladesh requested that Saudi authorities enforce existing labor laws, ensuring that employers pay the renewal fees as legally required.
- Officials proposed lowering the renewal fees for Bangladeshi workers, particularly those in lower-income jobs such as construction, domestic work, and transportation.
2. Ensuring Job Security and Fair Wages
- Many Bangladeshi workers face delayed or unpaid salaries, which makes it harder for them to afford basic needs, let alone pay for Iqama renewal.
- Bangladesh urged Saudi Arabia to implement stronger monitoring systems to prevent wage fraud and ensure timely payments.
3. Protecting Workers from Unfair Deportation
- When an Iqama is not renewed on time, the worker is classified as “illegal”, making them vulnerable to detention, deportation, and fines.
- Bangladesh proposed a grace period for workers who face Iqama renewal delays due to employer negligence.
4. Easier Transfer of Jobs Between Employers
- Many workers are trapped in “kafala” (sponsorship) contracts, where changing jobs requires sponsor approval.
- Bangladesh pushed for easier job transfer policies, allowing workers to switch employers without penalties if their sponsor fails to pay the required fees.
5. Reducing Migration Costs and Increasing Awareness
- Many workers arrive in Saudi Arabia unaware of their rights, making them vulnerable to exploitation.
- Bangladesh and Saudi Arabia discussed launching awareness programs to educate workers about labor laws, financial rights, and Iqama policies.
What Solutions Are Being Considered?
While Saudi authorities have not announced immediate changes, both countries have agreed to explore the following solutions:
- Fee Reductions for Low-Income Workers – Special exemptions or reductions in Iqama renewal fees for workers in specific sectors.
- Stronger Legal Enforcement – Increased monitoring to ensure employers fulfill their financial responsibilities.
- Flexible Payment Plans – Allowing workers to pay Iqama renewal fees in smaller monthly installments rather than a lump sum.
- Emergency Support Funds – Setting up a relief fund for migrant workers facing sudden financial hardships.
- Improved Worker Transfer Policies – Making it easier for workers to change jobs if their employer fails to pay for Iqama renewals.
The Bigger Picture: Strengthening Bangladesh-Saudi Ties
Saudi Arabia is one of the largest destinations for Bangladeshi migrant workers, contributing nearly $4 billion in annual remittances. Given this economic significance, labor relations between the two countries remain a top priority.
The Bangladesh Embassy in Riyadh continues to work closely with Saudi labor officials to ensure better working conditions, legal protections, and fair policies for expatriate workers.
According to Bangladesh’s Ministry of Expatriates’ Welfare and Overseas Employment, efforts are underway to:
- Improve bilateral agreements between Dhaka and Riyadh.
- Offer legal assistance to workers facing disputes.
- Strengthen worker training programs to help migrants secure better-paying jobs.
Conclusion: A Step Towards Positive Change?
While challenges remain, the recent discussions between Bangladesh and Saudi Arabia mark an important step toward securing better rights and protections for Bangladeshi expatriates.
Ensuring that employers comply with Iqama renewal policies, enforcing fair wage practices, and reducing financial burdens will be crucial in improving conditions for migrant workers.
As talks continue, Bangladeshi workers in Saudi Arabia remain hopeful that these discussions will lead to real changes, allowing them to work with dignity, financial security, and peace of mind.
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