EWS helps you to hire an international workforce quickly and compliantly, without setting up a legal entity locally. If you’d like to get in touch about our employer of record solution in Saudi Arabia, click here
Introduction – Kingdom of Saudi Arabia
Capital – Riyadh
Currency – Saudi Arabian Riyal (SAR)
Population – 34.81 Million
GDP – $700.1 Billion
Language – Arabic
Major Religions – Islam
The Kingdom of Saudi Arabia is located in the Middle East. Saudi Arabia is a young country that is heir to a rich history. In its western highlands, along the Red Sea, lies the Hejaz, which is the cradle of Islam and the site of that religion’s holiest cities, Mecca and Medina. In the country’s geographic heartland is a region known as Najd (“Highland”), a vast arid zone. To the east, along the Persian Gulf, are the country’s abundant oil fields that, since the 1960s, have made Saudi Arabia synonymous with petroleum wealth.
Saudi Arabia is the most dominant economy in the Middle East, 80% of the working population is made up of foreigners. 45% of the local population is under 25 years of age. The government are on a drive to increase employment of locals (Saudisation) in line with their vision 2030 where the government also wants to reduce the countries dependency on oil. Saudi Arabia is considered one of the richest countries in the world.
Contract of Employment
Employment contracts in Saudi Arabia must be issued in Arabic and in-line with the ministry of labour. The employment contract must set out the terms of employment and has to define the notice period, salary breakdown in SAR along with the probation period. Employment contracts for expatriates should be fixed term and for local nationals can fixed or unlimited duration.
Probation Period
90 days by default and up to a maximum of 180 days only after mutual consent.
Termination
The termination period must be specified in the employment contract and mutually agreed.
2 month is the generally accepted notice period, however by law this can be up to a maximum of 3 months if the employment contract has a longer notice period.
1 week notice during probation period in order to terminate the employment.
Working Hours
40-48 hours per week. The working week is Sunday to Thursday.
Overtime
Overtime should be set out in the employment contract. Daily working hours should not exceed 11 hours. Overtime is paid at 1.5x the employee’s salary rate.
Annual Leave
1 – 5 years of continuous employment 21 days of leave
5+ years of continuous employment 30 days of leave
Annual leave can be carried over with written consent from the employer. Any unused annual leaves have to be paid as cash to the employee based on the basic salary rate.
Sick leave
First 30 days of medical/sick leave is paid in full by the employer.
Day 31 to day 90 are paid at 1/3 of the salary rate.
An employee must have a valid medical/sick leave certificate issued from a medical professional to cover the sick leave period.
Maternity Leave
Female employees who are expected to give birth are entitled to 10 weeks of maternity leave. Maternity leave starts 4 weeks before the expected due date. Maternity leave is paid at 50% of the salary for employees who have 1-3 years of service and full pay for employees who have more than 3 years of service. If a female employee also takes annual leave during the same year she will be entitled to 50% of annual leave pay or no annual leave pay if she is getting 100% maternity pay.
A father is only entitled to 1 day of for the birth of the child.
VAT / ZAKAT:
VAT in Saudi Arabia is managed by the General Authority of Zakat and Tax.
| Items | VAT 15% |
| Business expense payments | No |
| Commission/bonus payments | No |
| Dependent levy fees | No |
| Employment/employers costs | Yes |
| End of service benefit payments | No |
| Exit re-entry visa | No |
| Family visas | No |
| Flight / air tickets | Yes |
| GOSI Contribution | No |
| Iqama new | No |
| Iqama renewal | No |
| Iqama transfer | No |
| Medical insurance payments | Yes |
| Monthly salary | No |
| Saudisation (nitaqat) | Yes |
Saudi VAT and ZAKAT Information
Income Tax
There is no direct income tax in Saudi Arabia.
GOSI
Saudi Nationals (private & public sector) – 22% of the maximum monthly applicable earnings (9% each for the employee and employer for annuity (pension). 1% each for unemployment contribution and 2% for occupational hazard, both of which the employer pays).
GCC Nationals (excluding Saudis) – between 17-22% in total depending on the nationality – always a 9% annuity contribution from the employer, 2% unemployment contribution from employer and the balance from the employee.
Expatriates – just 2% unemployment contribution paid by the employer.
Public Holidays
9 days of public leave.
Eid al Fitr – End of Ramadan (4-5 days)
Eid al Adha – Hajj Pilgrimage (4-5 days)
National Day – 23 September
Severance Pay
Severance pay is also called End of Service Benefit (EOSB). Article 84 of the Labour Law defines the payments for End of Service. An employee is entitled to 50% of their monthly salary for every year worked. EOSB is only payable after an employee has completed 2 years of service. EOSB payment is dependent on whether the employee is resigning or being terminated. The calculation for EOSB can now be performed online on the government portal.
Saudi EOSB Information and Calculator
Work and Residence Permits (Expatriates)
EWS can support expatriate employment in Saudi Arabia. We need basic employee information and a few forms to be filled. The templates can be shared upon request.
Business travellers can apply for a Business Visit Visa at a Saudi consulate once they receive a government-approved letter of invitation from a sponsor in Saudi Arabia. Business Visit Visas are usually valid for three months (single-entry) or 12 months (multiple entry).
All foreign employees must have a valid Iqama (work visa) for Saudi Arabia. The iqama is applied for by the employer in Saudi Arabia who is registered with the ministry of interior. An Iqama must be renewed every year for all foreign nationals.
Residence Permits (Expatriates Family Members)
Option 1:
Online through Absher Account (depending on eligibility). The employee will log in to the personal Absher Account and select the below services:
– E-services > my services > services
– Expatriate affairs
– Family visa service
– New family visa application
– Apply for a new family visa application
– The system will check employee eligibility either they can apply online
– In case if the employee is eligible, they will fill up own and dependents details online
– Once submitted, they will get the printout from the system and share it with EWS to attest it via online COC portal and wait for the final government confirmation through text message
Option 2:
In case the employee is unable to obtain visa through the online system, a manual application should be processed. The following documents are required during the manual process:
– A current and valid contract of employment
– The consulate name where the employee’s family will be filing the visa application
– National address (in Saudi) details
– Employee iqama and passport copy
– Dependent’s passport copies
– Dependent’s passport size photos (two each member)
– Attestation educational qualification & certificate copy
– Course specialisation
– Course duration
– Date of certificate issuance
– University name
– The period since employee is in Saudi
– Isteqdam payment (family visa payment)
– PRO assistance required for Isteqdam
Housing rentals in Saudi Arabia
Some of the country’s best-known and reliable property listing sites are mentioned below. These will have either the agent’s or the landlord’s contacts, and we can set up a meeting after taking a virtual tour. Agents typically charge around the equivalent of 2.5% of the annual value of the rental.
1. https://www.bayut.sa/en/
2. https://www.propertyfinder.sa/en/
In Saudi Arabia, the year’s rent is paid in advance through post-dated cheques. The landlord can ask for two cheques or for quarterly cheques. This, however, is negotiable, and not always watertight. There are cases – especially in compounds – where the tenant may be allowed to even do a monthly payment. Registering a tenancy agreement on Ejar is a must for tenants.
Obtaining a Driving License (Car)
– The applicants minimum age must be 18.
– Fill-in the specified form completely (available at driving license centre)
– Provide four photos, size (4X6) cm.
– Provide the original foreign license along with an attested Arabic translation.
– Provide a copy of Civil Affairs ID (Saudis.)
– Provide a copy of Resident Permit (Iqama) and passport (Non-Saudis.)
– Provide an no objection letter from the sponsor (Non-Saudis.)
– Provide a valid medical check-up report (eye test and blood type)
– Pay the required fees.
– Provide a file to save documents.
If a Saudi or Non-Saudi does not have a driving license already (from a foreign country) then they will have to attend a driving school. Every applicant must pass the final road test to obtain a Saudi driving license.
Car rentals are quite easy in Saudi Arabia. To explore some options click here
The $100K Visa Shock: Why Global Hiring Just Replaced the H-1B
How to Set Up Payroll For Hpc And Ai Teams
Contracting Machine Learning Talent Abroad
Everything on Hiring Foreign Phds In German Tech Labs
Cross-Border Ip Protection In R&D Teams
How To Classify Freelancers In Tech Innovation
How Eor Helps Tech Firms Legally Hire In Germany
Dual Contract Structure For International Researchers
Data Protection Obligations For Remote Tech Staff
Germany Research Visa Vs Skilled Worker Visa
Everything on Nis2 Directive Compliance For Eu Tech Workers
Global Mobility For Deep Tech Startups In Germany
Payroll For EU Embedded Systems Developers
Relocation Support For Semiconductor Experts on EU
The Absolute Way to Hire Ai Engineers In Germany
How to Manage Benefits For German Tech Hires
Germany’S Blue Card Process For Engineers
Everything on Germany R&D Employment Compliance
Remote Hiring Of Cybersecurity Analysts In Eu
Visa Pathways For Quantum Computing Researchers
Onboarding Robotics Specialists Across EU Borders
Workforce Planning In Ai-Driven Logistics And Infrastructure
Visa Processing For High-Tech Infrastructure Staff
Managing Global Mobility In Sustainable City Projects
Cross-Border Team Management In Saudi Data Centers
Hiring Skilled Labor For Green Hydrogen Facilities
Digital Twin Technology Hiring Trends In Saudi Construction
Employer Obligations In Public-Private Energy Initiatives
Navigating Local Labor Laws For Solar Energy Teams
Talent Acquisition In The Saudi Mining Sector
Eor Solutions For Ai Engineers In Mega Projects
Regulatory Challenges In Hiring For Giga Construction Projects
Contractor Compliance In Smart City Developments
Classification Of Engineering Consultants In Vision 2030 Projects
How To Manage Workforce For Neom-Based Tech Projects
Eor For Multinational Mining Firms Operating In Saudi Arabia
Employer Of Record For Wind Energy Projects In The Gulf
Relocation Logistics For International Clean Energy Experts
Hiring Strategies For Large-Scale Construction Projects In Ksa
How To Onboard Digital Infrastructure Experts In Saudi Arabia
Payroll Setup For Renewable Energy Workers In Ksa
Strategic Relocation To Riyadh Or Doha: A Guide for Global Employers
Work Visa Processing In Qatar And Saudi Arabia
Qatar Nationalization Policy And Foreign Firms
Cost Of Setting Up A Business In Qatar: A Guide for Global Employers
Saudi Labor Court And Dispute Handling for Global Employers
Cross-Border Payroll For Ksa And Qatar Teams
End Of Service Benefits Saudi Arabia: A Guide for Global Employers
How To Manage Expat Benefits In Qatar for Global Employers
Expanding Into New Markets: Vendor Risks You Should Flag
A Guide to Cross-Border Equity Vesting for Tech Startups
Employer Branding for Multinational Teams: What Works Now
What Global C-Level Leaders Miss About Digital Nomad Visas
Succession Planning for Distributed Teams: A Practical Guide
Relocation Budgeting For Global Tech Firms
Latam Hiring Strategy: What Global Companies Should Know
Risk Of Permanent Establishment Explained
Managing Intellectual Property In Remote Work
Benefits Benchmarking Globally for Global Companies
How to Benchmark Compensation Across 100+ Countries in 2025
Checklist: Preparing HRIS for Fast International Scalability
Biometric Data in Global Payroll: Legal Boundaries Explained
8 Regulatory Updates Impacting Global HR in 2025
What are Hidden Costs of In-House Payroll?
Why Companies are Thinking Differently About Relocation
Is Your Global Mobility Program Outgrowing Spreadsheets?
Remote Work Visas: A Growing Trend in Global Mobility
Hiring in Europe Post-Brexit: What You Need to Know
Tips for Managing Multi-Time Zone Teams Successfully
Relocation Packages: What Top Talent Expects in 2025
Banking and Payroll Challenges in Saudi Arabia Markets
The Legal Risks of Misclassifying Global Workers
Why Scalability Should Drive Your Global HR Strategy
How EWS Streamlines Global Mobility for Tech Talent
Lithuania – Employer of Record
Kosovo – Employer of Record
Finland – Employer of Record
Namibia – Employer of Record
Nepal – Employer of Record
Spain – Employer of Record
Latvia – Employer of Record
Ireland – Employer of Record
Cyprus – Employer of Record
Czech Republic – Employer of Record
Italy – Employer of Record
Indonesia – Employer of Record
South Africa – Employer of Record
Tunisia – Employer of Record
Bosnia – Employer of Record
Moldova – Employer of Record
Five Tips For Improving Employee Engagement
Netherlands – Employer of Record
Germany – Employer of Record
France – Employer of Record
Portugal – Employer of Record
Bulgaria – Employer of Record
Austria – Employer of Record
Hungary – Employer of Record
Slovenia – Employer of Record
INCLUSIVITY IN THE TEAM MAKES EVERYONE WIN
Thailand – Employer of Record
Sri Lanka – Employer of Record
The Significance of an Employer of Record
Greece – Employer of Record
Mexico – Employer of Record
4 Reasons to Outsource Your Payroll
Five Recruitment Trends 2023
Malaysia – Employer of Record
Skill-Based Hiring and Benefits
Malta – Employer of Record
How To Practice Inclusive Recruitment
Israel – Employer of Record
Macedonia – Employer of Record
Jordan – Employer of Record
Macau – Employer of Record
Peru – Employer of Record
The Importance of Employer Branding
Bahrain – Employer of Record
South Korea – Employer of Record
Recruiting during a recession
Philippines – Employer of Record
USA – Employer of Record
Japan – Employer of Record
How To Setup A Business in 2023
Norway – Employer of Record
Managing Overseas Projects In 2023
Reason Of Expanding Your Workforce Globally
Croatia – Employer of Record
Colombia – Employer of Record
5 Ways To Speed Up Your Hiring Process
Egypt – Employer of Record
3 Ways To Streamline An Interview Process
Russia – Employer of Record
Saudi Arabia – Employer of Record
Hong Kong – Employer of Record
An Effective Hybrid Work Model
Turkey – Employer of Record
UAE – Employer of Record
Pakistan – Employer of Record
7 Things to Consider Before Accepting a Job
Kazakhstan – Employer of Record
3 Reasons to Encourage Employees to Generate Employer Brand Content
Denmark – Employer of Record
Sweden – Employer of Record
Bangladesh – Employer of Record
Kuwait – Employer of Record
How To Hire In The Age Of Hybrid Working
Australia – Employer of Record
Oman – Employer of Record
Qatar – Employer of Record
Ukraine – Employer of Record
Diversity – A Vital Hiring Strategy
Owning Every Moment of Your Hiring Experience
Serbia – Employer of Record
Maldives – Employer of Record
India – Employer of Record
Argentina – Employer of Record
Uzbekistan – Employer of Record
Belarus – Employer of Record
Brazil – Employer of Record
Chile – Employer of Record
Armenia – Employer of Record
3 Steps To Company Formation In The UK & Abroad
Romania – Employer of Record
Canada – Employer of Record
Morocco – Employer of Record