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.
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.
*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.