Talent Wiki - Saudi Arabia
Your quick guide on talent and labor compliance norms in Saudi Arabia
Capital
Riyadh
Currency
Saudi Riyal
Languages
Arabic, English
Payroll Frequency
Monthly or weekly
GDP per Capita
$27,008.76
Employer Tax
22% - 24%
Talent Overview
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:
Data Analyst, Digital Marketer, Social Media Marketer, Software Developer
Local Universities
The top local universities in Saudi Arabia with ranks are mentioned below:
King Saud University
RANKING
Local: 1
World : 148
King AbdulAziz University
RANKING
Local: 2
World : 1019
King Abdullah University of Science and Technology
RANKING
Local: 1
World : 1232
King Fahd University of Petroleum and Minerals
RANKING
Local: 4
World : 1519
Umm Al-Qura University
RANKING
Local: 5
World : 1601
Salary Data
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 |
Talent Sourcing Tips
Top Local Job Boards:
Number of LinkedIn users:
7,120,000
Top Recruitment Agencies:
TASC Outsourcing, Ajeets Management and Manpower Consultancy
Employing in Saudi Arabia
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.
Employee Contract
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.
Probation Period
The probation period in Saudi Arabia is a maximum of 90 days.
Public and Provincial Holidays 2023
| Date | Name | Type |
| 22 Feb | Founding Day | National holiday |
| 22 Apr | Eid al-Fitr (Tentative Date) | National holiday |
| 23 Apr | Eid al-Fitr Holiday (Tentative Date) | National holiday |
| 24 Apr | Eid al-Fitr Holiday (Tentative Date) | National holiday |
| 25 Apr | Eid al-Fitr Holiday (Tentative Date) | National holiday |
| 27 Jun | Arafat Day (Tentative Date) | National holiday |
| 28 Jun | Eid al-Adha (Tentative Date) | National holiday |
| 29 Jun | Eid al-Adha Holiday (Tentative Date) | National holiday |
| 30 Jun | Eid al-Adha Holiday (Tentative Date) | National holiday |
| 23 Sep | Saudi National Day | National holiday |
| 24 Sep | Day off for Saudi National Day | National holiday |
Employee Leaves
| 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 |
Payroll
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.
Bonus
13th Month Pay
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.
Employee Benefits
- Social insurance
- Unemployment insurance
- Paid leaves
- Maternity leaves
- Retirement benefits
Taxes
Employer Payroll Tax
| Employee type | Contribution | Tax rate |
| Saudi employees | Occupational hazard | 12% |
| Social insurance | 9% | |
| Unemployment insurance | 1% | |
| Non-Saudi employees | Occupational hazard | 2% |
Employee Payroll Tax
| Employee type | Contribution | Tax rate |
| Saudi employees | Social insurance | 9% |
| Unemployment insurance | 1% | |
| Non-Saudi employees | Occupational hazard | 2% |
Employee Income Tax
Saudi Arabia does not impose any income tax on wealth earned only via employment.
VAT
The standard rate of Value-Added Tax in Saudi Arabia is 5%.
Offboarding & Termination
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 |
Visa and Immigration
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.
