The Qiwa platform has started to automatically remove resident employees from an establishment’s records when their work permits have remained expired for more than three months, with implementation effective from 1 July 2026. Separately, on 30 June 2026, the Ministry of Human Resources and Social Development (HRSD) announced that the grace period to correct the status of certain expatriate workers has been extended until 31 December 2026.1
WHY THIS MATTERS
From an employee perspective, those whose permits are not renewed in time may lose their legal employment status and associated rights, potentially affecting their residency and ability to work. Payroll managers, HR leaders, and global mobility professionals are required to be aware that employers remain financially responsible for pay and related obligations up until the date of official removal from the establishment’s register.
Key Highlights
This update provides for automatic removal of employees from an establishment’s records through Qiwa when a work permit remains expired for more than three months. The key points include:
- Automatic removal from Qiwa records: Effective 1 July 2026, resident employees whose work permits have remained expired for more than three months may be automatically removed from the establishment’s employment record on Qiwa.
- Three-month expiry threshold: The removal process applies when the employee’s work permit has been expired for more than three months, and the employer has not renewed it within the allowed period.
- Financial responsibility: The employer remains responsible for financial obligations relating to the employee for the period during which the employee continued working without a valid work permit, up to the formal removal date.
- Exception where Iqama validity remains: Qiwa reportedly provides an exception when the employee’s work permit expires before the residency permit, the Iqama remains valid for at least 180 days, and the employer is unable to renew the work permit during that period. In such cases, the employee remains registered with the establishment despite the expired work permit.
- Related Qiwa renewal guidance: Qiwa’s official guidance states that work permits may be renewed within 180 days before expiry, and that expired work permits may lead to fines and restrictions on establishment services.
KPMG INSIGHTS
In light of the change, organizations and entities might wish to consider the following:
- Organizations could review internal tracking processes for work permit and Iqama expiry dates for resident foreign employees in Saudi Arabia.
- Employers could review pending work permit renewals ahead of the three-month expiry threshold referenced in the Qiwa update.
- Organizations could align mobility, HR, and payroll records to reflect work permit validity and employee status on Qiwa.
- Employers could retain documentation relating to work permit renewal attempts, Iqama validity, and any cases in which renewal was not available.
- Organizations could review potential payroll and financial exposure where employees remain active while work permits are expired.
- Employers could review work permit renewal timelines to reduce the risk of automatic removal of employees from establishment records, potential workforce disruption, and related financial exposure.
If assignees and/or their programme managers have any questions or concerns about the update, they should consult with their qualified immigration professional or a member of the GMS/People Services team with KPMG in the Lower Gulf (see the Contacts section).
ENDNOTE:
1 Ministry of Human Resources and Social Development (in Arabic), “Saudi Arabia’s Qiwa to remove workers with expired work permits from 1 July 2026,” published on 30 June 2026.
Contacts
Disclaimer
* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.
The information contained in this newsletter was submitted by the KPMG International member firm in the United Arab Emirates.
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