Current Region & Language
Current Region & Language
Current Region & Language
Currency
Saudi Riyal (SAR)
Employer Taxes
Approximately 9% for Saudi employees
Payroll Frequency
Monthly
Language
Arabic
Date Format
DD/MM/YYYY
Saudi Arabia By The Numbers
34 million
Population
SAR 1.1 trillion
GDP
3
National Holidays
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Weekly Working Hours
National Holidays
Leave
Employees are entitled to various types of leave, including holiday and sick leave, as well as specific leave for personal events. These include five days of leave upon marriage, three days for the birth of a child, and five days in the event of the death of the employee’s wife, an ancestor, or a descendant. In cases where a Muslim wife’s husband passes away, she is entitled to five months and ten days of leave, with the possibility to extend this leave without pay if she is pregnant until she gives birth. However, she may not enjoy the remainder of the bereavement leave granted after giving birth to her child. Non-Muslim female employees are entitled to fifteen days of leave in the event of the death of their husband.
Employment Contracts
Employers are required to provide written employment contracts and policies that outline the terms and conditions of employment, including job responsibilities, compensation, benefits, and workplace expectations, in compliance with applicable labor laws. In some cases, employers may be required to submit a government leasing contract.
Types of Employment
Employees are the only recognized type of employment.
Employment Costs
There are no specific requirements regarding employment costs.
IC Class Factors
In Saudi Arabia, there are no specific Independent Contractor (IC) class factors that directly apply, as the classification of workers is generally determined based on the nature of their work and contractual agreements rather than specific regulatory criteria.
Labor Leasing
The placement of contingent or temporary workers at third party sites requires a labor leasing license.
Minimum Wage Requirements
The minimum wage for those employed in the private sector is SAR 4,000 Saudi riyals, subsidized by the Human Resources Development Fund (Hadaf). The minimum wage for public sector workers is SAR 3,000 Saudi riyals. There is no established minimum wage for expats working in the private sector in Saudi Arabia at this time.
Medical Benefits
Employees are entitled to 120 calendar days of sick leave within any 12-month period. The first 30 days of sick leave are paid at full pay, the next 60 days are paid at three-quarters of the regular pay (1/3 pay), and the remaining 30 days are unpaid.
Probationary Periods
A probation period shall be expressly stated and clearly indicated in the work contract, provided that such probation period shall not exceed 90 days, exclusive of Eid Al-Fitr and Eid Al-Adha holidays and sick leaves. The probation period may be extended by written agreement between the worker and the employer, provided that it shall not exceed 180 days. Each party shall have the right to terminate the contract during this period, unless the contract contains a provision giving the right to terminate the contract to only one of them.
Termination Notice
There is a minimum termination notice period of 60 days.
Severance
End of Service Benefits are calculated as 15 days of gross salary for each year of service up to 5 years. After 5 years of service, the benefit increases to 30 days of gross salary per year.
Pre-hire Checks
Government screening and security checks, along with home country medical examinations, in-country medical checks, and police clearance certificates, are required as part of the pre-employment process to ensure compliance with local regulations and to verify the candidate’s suitability for employment.
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