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Discover global hiring strategies from leading recruitment platforms
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Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.
Explore Multiplier EOR
Your guide to the employment landscape, working customs and local labor laws in Saudi Arabia.
Capital
Riyadh
Currency
Saudi Riyal
Languages
Arabic, English
GDP per Capita
$21,069
Employer Tax
22% - 24%
Payroll Frequency
Monthly or weekly
Saudi Arabia relies primarily on its oil reserves while the private sector is receiving support from the government for a diverse economy. The country owns almost 16% of the world’s petroleum establishing its status as the largest petroleum exporter. Saudi Arabia has a GDP of USD 833.54 billion and ranks 63 in World Bank’s Ease of Doing Business Index.
Major economic hubs:
Riyadh, Jeddah, Medina, Mecca
Skills in demand:
Local: 1
World : 148
Local: 2
World : 1019
Local: 1
World : 1232
Local: 4
World : 1519
Local: 5
World : 1601
7,120,000
TASC Outsourcing, Ajeets Management and Manpower Consultancy
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
The table below mention some common jobs with average monthly salary in Saudi Arabia:
| Job Title | Average Monthly Salary (in SAR) | Average Monthly Salary (in USD) |
| Financial Manager | 31,100 SAR | 8,279.47 USD |
| General Manager | 26,800 SAR | 7,134.72 USD |
| Business Development Manager | 25,300 SAR | 6,735.39 USD |
| Financial Analyst | 21,000 SAR | 5,590.64 USD |
| Business Analyst | 19,200 SAR | 5,111.44 USD |
| Project Manager | 18,200 SAR | 4,845.22 USD |
The Labour Laws of Saudi Arabia regulate all employer-employee relationships in the Kingdom. Both parties should be aware of the regulations outlined by the Law to ensure compliance and legality. The sections below cover the major aspects of the Law to help both parties understand their duties and rights.
The Labour Laws in Saudi Arabia recognize both written and verbal contracts. The written contract must be published in Arabic, and both parties should have a copy of the document.
The probation period in Saudi Arabia is a maximum of 90 days.
| Date | Name | Type |
| 22 Feb | Founding Day | National holiday |
| 10 Apr | Eid al-Fitr (Tentative Date) | National holiday |
| 11 Apr | Eid al-Fitr Holiday (Tentative Date) | National holiday |
| 12 Apr | Eid al-Fitr Holiday (Tentative Date) | National holiday |
| 13 Apr | Eid al-Fitr Holiday (Tentative Date) | National holiday |
| 15 Jun | Arafat Day (Tentative Date) | National holiday |
| 16 Jun | Eid al-Adha (Tentative Date) | National holiday |
| 17 Jun | Eid al-Adha Holiday (Tentative Date) | National holiday |
| 18 Jun | Eid al-Adha Holiday (Tentative Date) | National holiday |
| 23 Sep | Saudi National Day | National holiday |
| Type of Leave | Time Period | Mandatory |
| Annual leaves | 21 days, increased to 30 days after 5 years of service | Yes |
| Sick leaves | 120 days (First 30 days with full pay, next 60 days with 75% of the pay and last 30 days with no pay) | Yes |
| Maternity leaves | 10 weeks (4 weeks before birth of the child and 6 weeks after the birth) | Yes |
Leave Compliance
Payroll cycle
Employees in Saudi Arabia are paid in monthly or weekly cycles.
Minimum wage
The minimum wage in Saudi Arabia is SAR 4,000 for Saudi citizens working in the private sector.
Overtime pay
The standard working hours in Saudi Arabia are 8 hours a day and 48 hours a week, which can be increased to 9 or 7 hours a day for certain industries where the employee does not work continuously. The working hours for Muslim employees are reduced to 6 hours a day and 36 hours a week during the month of Ramadan.
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| Employee type | Contribution | Tax rate |
| Saudi employees | Occupational hazard | 12% |
| Social insurance | 9% | |
| Unemployment insurance | 1% | |
| Non-Saudi employees | Occupational hazard | 2% |
| Employee type | Contribution | Tax rate |
| Saudi employees | Social insurance | 9% |
| Unemployment insurance | 1% | |
| Non-Saudi employees | Occupational hazard | 2% |
Saudi Arabia does not impose any income tax on wealth earned only via employment.
The standard rate of Value-Added Tax in Saudi Arabia is 5%.
13th-month pay is not mandatory, although both parties can choose to include this on a collective agreement. But the employees get a bonus every year.
Indefinite contracts can be terminated due to valid reasons, with a written notice in advance served to either party. Contracts can also be terminated due to mutual agreement, violations of terms in the agreement, the retirement of the employee, or force majeure.
The notice period, in case of indefinite contracts, is 30 to 60 days.
The End of Service Benefit (ESB) is given to employees after completing 2 consecutive years with the same employer. The rate of ESB pay is half a month’s wage for each of the first 5 years of service, and one month’s wage for each subsequent year after more than 5 years of service.
If the employee resigns from their job, the ESB is paid at the following rate:
| Length of service | ESB pay |
| 2 – 5 years | 1/3rd of the entitled pay |
| 5 – 10 years | 2/3rd of the entitled pay |
| More than 10 years | Full entitled pay |
Saudi Arabia allows visa-free stay to citizens of Bahrain, Kuwait, Oman, and the United Arab Emirates. Professionals of other countries must get residence and work permits before their first date of employment in Saudi Arabia.
Foreigners who fulfil the eVisa requirements can enter Saudi Arabia with their digital permit. Others can visit the Embassy or Consulate of Saudi Arabia and apply via the traditional method. The individual must present a letter addressed to the Embassy/Consulate stating the reason for the visit, a letter of invitation from the Saudi employer, and the company registration documents.
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Overtime Pay
Minimum Wage
Overtime Pay
The standard working hours in Saudi Arabia are 8 hours a day and 48 hours a week, which can be increased to 9 or 7 hours a day for certain industries where the employee does not work continuously. The working hours for Muslim employees are reduced to 6 hours a day and 36 hours a week during the month of Ramadan.
If an employee commits additional hours to work, they are liable to overtime pay at the rate of 150% of their regular wage. In any case, the maximum working hours must never exceed 10 hours a day or 60 hours a week. All duties performed on public holidays and Eids are considered overtime.
Visa and Immigration
By use case
By team
By company size