Saudi Arabia offers a fast-growing Gulf market and low direct employer taxes for expatriate staff, with an end-of-service award in place of a pension. All-in employer cost runs around 1.12x the gross salary. Here is what to know before your first Saudi hire.
Employment runs under the Labour Law, with salaries paid through the Wage Protection System and Saudization (Nitaqat) quotas shaping hiring. Nationals are on GOSI social insurance; expatriates accrue an end-of-service award.
There is no minimum wage for expatriate workers; a minimum applies to Saudi nationals for Saudization counting*.
Monthly, paid through the Wage Protection System. There is no statutory 13th salary.
Around four official holidays (the two Eids and National Day), with additional days by employer.
Written contracts are required. Probation is 90 days, extendable to 180 by agreement.
For expatriate staff the direct employer contribution is small (occupational hazards), plus the accruing end-of-service award; Saudi nationals require full GOSI contributions.
Expatriate staff accrue half a month's pay per year for the first five years and a full month a year thereafter, paid on departure.
There is no personal income tax in Saudi Arabia. Payroll compliance centres on WPS, GOSI for nationals, and Saudization, which under EOR is ours.
21 paid days a year, rising to 30 after five years of service.
10 weeks of maternity leave, paid by the employer per length of service.
Up to 30 days at full pay, 60 at three-quarters, and 30 unpaid within a year.
Paid leave is provided for marriage, bereavement, and the birth of a child.
Notice is 30 to 60 days, and termination of an indefinite contract needs a valid ground to avoid compensation.
On exit, staff receive the accrued end-of-service award, reduced in some resignation cases.
90 days, extendable to 180 by written agreement.
Work requires the proper visa and sponsorship structure; engaging staff outside it creates compliance exposure.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Saudi contract, WPS payroll, GOSI or end-of-service award, and benefits, handled. One invoice, flat $699 per month.