Cost of Hiring Pakistani Workers for Saudi Companies: Complete Recruitment Cost Guide

In the competitive business landscape of 2026, Saudi companies are increasingly looking toward Pakistan to fulfill their growing need for skilled and reliable talent. Whether you are managing a construction mega-project or a specialized engineering firm, understanding the financial commitment is the first step toward a successful hiring strategy. This Cost of Hiring Pakistani Workers for Saudi Companies: Complete Recruitment Cost Guide provides an up-to-date, transparent breakdown of the expenses involved, ensuring that your HR budget is optimized and fully compliant with the latest Saudi and Pakistani labor regulations.

The Strategic Shift in 2026: Why Cost Transparency Matters

As Saudi Arabia progresses through its Vision 2030 goals, the Ministry of Human Resources and Social Development (MHRSD) has introduced stricter mandates regarding recruitment fees. In 2026, the principle of “Employer Pays” is no longer just an ethical choice—it is a legal framework.

For a Saudi employer, the total cost of hiring a Pakistani worker is split between government fees in the Kingdom, processing costs in Pakistan, and the ongoing maintenance of the worker’s residency. Budgeting correctly prevents project delays and ensures that you attract the “cream of the crop” by removing the financial burden from the worker.

1. Saudi Side: Government & Administrative Fees

The recruitment process begins in Saudi Arabia with the digital acquisition of a visa quota and authorization.

Qiwa Visa Quota (Block Visas)

Through the Qiwa platform, employers must first secure the right to hire from abroad.

• Instant Work Visa Fee: Typically ranges from SAR 2,000 to SAR 7,000, depending on the company’s Nitaqat tier and the specific profession.

• Temporary Work Visas: For short-term projects (up to 90 days), fees are often lower, starting at approximately SAR 1,000 per visa.

MOFA Authorization

Once the block visa is approved, it must be authorized for a recruitment agency in Pakistan via the Ministry of Foreign Affairs (MOFA).

• Estimated Cost: SAR 300 – SAR 500 per visa.

Iqama and Work Permit (Post-Arrival)

The costs do not end when the worker lands. Within 90 days of arrival, the employer must issue a residency permit.

• Work Permit Fee: SAR 100 (base) + SAR 9,600 (annual financial levy/GOSI-related costs).

• Iqama Issuance Fee: SAR 650 per year.

2. Pakistan Side: Processing & Legal Clearance

The Pakistani recruitment phase involves several mandatory steps to ensure the worker is legally documented and fit for duty.

Wafid (formerly GAMCA) Medical Examination

Every worker must be medically cleared by a center approved by the Gulf Health Council.

• Registration Fee: $10 (approx. PKR 2,800).

• Medical Center Fee: Approximately PKR 7,500 – 12,000 (subject to clinic and city).

Protector of Emigrants Clearance

In 2026, this is the most vital step in Pakistan. No worker can legally fly without this clearance.

• Welfare Fund (OPF): PKR 4,000.

• Insurance Premium (State Life): PKR 2,500 (covers life and disability for 5 years).

• Registration/OEC Fees: PKR 2,700.

• Total Protector Package: Approximately PKR 9,200 – 10,000.

Agency Service Charges (Overseas Employment Promoters)

A licensed agency (OEP) handles the sourcing, trade testing, and interview logistics.

• Standard Fee: Government-capped at PKR 15,000 – 25,000 per worker, though premium agencies offering executive search or specialized technical testing may charge higher service fees to the employer.

3. Logistics and Onboarding Costs

To ensure a smooth transition, the employer must factor in the physical movement of the talent.

• Airfare: A one-way ticket from Pakistan (Lahore, Islamabad, or Karachi) to Saudi Arabia (Riyadh, Jeddah, or Dammam) typically costs between SAR 800 and SAR 1,500, depending on the season and lead time.

• Medical Insurance in KSA: Mandatory for visa issuance, costing SAR 150 – SAR 600 per worker annually.

Summary Table: Estimated Recruitment Cost Per Worker (2026)

Legal Compliance: Avoiding the “Hidden Costs” of Fines

In 2026, the Saudi MHRSD has increased its vigilance against “unethical recruitment.”

1. Fee Deductions: If an employer is found to be deducting the cost of hiring from a worker’s salary, they face fines starting at SAR 20,000 and a suspension of their Qiwa services.

2. Trade Testing Verification: For 2026, technical workers must have their skills verified via authorized centers. Neglecting this step can lead to project delays and costly rework on-site.

Strategies to Optimize Recruitment Spending

While the costs are fixed by government regulations, you can optimize your spending by:

• Bulk Hiring: Most agencies in Pakistan offer significant volume discounts for companies hiring 50+ workers at once.

• Digital Interviews: Using AI-video conferencing for initial rounds can save thousands in travel costs for your HR team.

• Retention Planning: The most expensive worker is the one who leaves. Providing a clear salary structure and housing allowance reduces the high cost of replacement.

Conclusion: A Sound Investment for 2026

Hiring from Pakistan remains one of the most cost-effective talent strategies for Saudi companies. While the initial investment per worker may seem significant, the return on investment—measured in productivity, reliability, and technical skill—far outweighs the upfront costs. By following this Cost of Hiring Pakistani Workers for Saudi Companies: Complete Recruitment Cost Guide, you can ensure your project is built on a foundation of legal compliance and financial foresight.