* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Saudi Riyal ($)


AST (GMT +3)

Employment Cost

2% - 12%

Annual Leave

21 days

In-demand Specialties*
Engineering, It, Healthcare & Medicine

The Ultimate Guide to Hiring Employees in Saudi Arabia

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-Saudi Arabia-guide

Key Considerations Before Hiring In Saudi Arabia

Employing in Saudi Arabia requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Saudi Arabia with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Saudi Arabia quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Saudi Arabia consistently ranks among the top 20 global economies, contributing a significant 25% to the total GDP of Arab nations. With a quarter of the world's oil reserves, it holds a crucial position in the Organization of the Petroleum Exporting Countries (OPEC).

The estimated 263 billion barrels of oil reserves in Saudi Arabia ensure its status as a major oil supplier for the next century. Additionally, the country is emerging as a prominent global producer of both precious and industrial metals.

The Saudi Arabian Vision 2030 initiative aims to enhance economic diversification by investing in public health, education, infrastructure, and tourism.

Saudi Arabia's education system strategically equips the youth for international business by teaching English as a second language, aligning with the prevalent use of English in the country's business sector.


Fundamental Aspects of Employment in Saudi Arabia

In Saudi Arabia, it is mandatory to have a formally signed employment agreement between the employer and employee. These contracts must include basic employment details, such as:

  • Duration and potential renewal terms of contract
  • Probationary period (if applicable)
  • Workdays and working hours
  • Basic salary and potential bonuses
  • Annual leave entitlements
  • Medical insurance and contributions to social security
  • Coverage of recruitment and residency permit costs (for non-Saudi employees)
  • Employer policies and guidelines
  • Inclusion of a termination clause
  • End-of-service benefits

Probationary Period in Saudi Arabia

The duration of probationary periods in Saudi Arabia is based on the terms specified in the employment contract. Typically lasting for 90 days, these periods can be extended through written consent from both the employer and the employee, with the extension not surpassing 180 days.

Working hours in Saudi Arabia

In Saudi Arabia, a standard workweek consists of 8 hours per day over 5 days, totaling not more than 48 hours weekly. However, during the Ramadan period, daily working hours may be reduced to 6 hours.

Overtime in Saudi Arabia

The Saudi Labour Law (Article 148) prohibits employees from working more than 11 hours per day. Overtime, compensated at 150% of the regular salary, is applicable for work beyond standard hours, including on weekly rest days, holidays, and national holidays (Article 51).

Navigating Key Aspects of Payroll in Saudi Arabia

Saudi Arabia has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Saudi Arabia

1 January - 31 December is the 12-month accounting period that businesses in Saudi Arabia use for financial and tax reporting purposes.

Payroll Cycle in Saudi Arabia

The payroll cycle in Saudi Arabia is usually monthly, with employees being paid by the 10th day of the following month.
20.83 SAR p/h

Minimum Wage in Saudi Arabia

The minimum wage for employees in Saudi Arabia is typically 20.83 SAR per hour, amounting to ~4,000 SAR per month for a typical 48 hour work week.

Minimum wages and salaries in Saudi Arabia

The monthly minimum wage of public sector employees in Saudi Arabia is 4,000 SAR. There is no specified minimum wage for the private sector.

Bonus Payments in Saudi Arabia

13-month payments in Saudi Arabia are not obligatory, but employers have the choice to issue performance-based bonuses as they see fit.

Comprehensive Overview of Employment Taxes in Saudi Arabia

Understanding the tax obligations for both employers and employees is crucial when operating in Saudi Arabia's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Saudi Arabia.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 2% - 12% on top of the employee salary in Saudi Arabia.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Saudi Arabia, the typical estimation for employee payroll contributions cost is around 10%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Saudi Arabia does not impose any income tax.

Tax Rate Income Bracket

Pension in Saudi Arabia

To qualify for Saudi Arabia's old-age retirement pension, individuals must be at least 58 years old and have contributed for a minimum of 120 months to the General Organization for Social Insurance (GOSI). Those with 300 months of contributions are eligible for retirement at any age, and the minimum monthly old-age state pension is 1,984 SAR.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Saudi Arabia tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Saudi Arabia

When it comes to terminating employment in Saudi Arabia, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Saudi Arabia, the termination procedure must be clearly outlined in writing, aligning with the terms of the employment agreement, and is based on the contract type and the reason for termination. This may potentially include the termination of visa sponsorship. Acceptable circumstances for termination include:

  • Voluntary resignation by the employee
  • Mutual agreement between both parties
  • Unilateral termination by the employer (based on the probation period, specific grounds, disciplinary dismissal, or inadequate performance for the job)
  • Expiration of the employment contract

Notice Period

The notice period in Saudi Arabia varies based on the following types of employment contract:

  • During the probation period – 1-day notice
  • Termination or resignation of an indefinite contract (open-ended and paid monthly) – 60 days' notice
  • Fixed-term contracts – 30 days' notice

Severance Pay

End of Service Gratuity (EOSG) is granted upon termination. For employer terminations, the calculation involves adding half a month's salary for the first 5 years and 1 month's wage for each subsequent year of service. Fractional years are compensated based on the last salary. In case of employee resignation, the entitlement is as follows:

  • 2-5 years of service – 1/3 of the award
  • 5-10 years of service – 2/3 of the award
  • More than 10 years of service – full award

Annual Leave Entitlements and Company Policies in Saudi Arabia

The annual leave entitlement in Saudi Arabia is 21 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Saudi Arabia

Saudi Arabia acknowledges four public holidays each calendar year, which are separate from the regular annual leave. The following are the national public holidays in Saudi Arabia:

Holiday Date

Paid Time Off in Saudi Arabia

Maternity Leave in Saudi Arabia

Paternity Leave in Saudi Arabia

Sick Leave in Saudi Arabia

Bereavement Leave

Marriage Leave

Parental Leave In Saudi Arabia

Saudi Arabia's Benefits Built Into Playroll

Competitive benefits package in Saudi Arabia

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Saudi Arabia's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Saudi Arabia

Make your benefits package in Saudi Arabia a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible β€” all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

Statutory benefits for employment in Saudi Arabia

Playroll allows you to provide localized benefits for employees in Saudi Arabia within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Saudi Arabia create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Saudi Arabia

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Saudi Arabia.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!