Saudi Arabia

Currency
Saudi riyal (SAR)
Payroll Frequency
Weekly or monthly
Employer Taxes
12 to 14%

About 

Saudi Arabia

Saudi Arabia is a largely desert, oil-rich country that occupies most of the Arabian Peninsula and is home to the two holiest sites of Islam.

Overview

Population
34,218,169
Language
Arabic
Capital
Riyadh
Currency
Saudi riyal (SAR)
Country code
+966
Min wage
4,000 SAR per month
Working hours
8 hours per day
Weekdays
Saturday to Thursday
Work hours per week
48 hours per week

Payroll

Cycle

Weekly or monthly

Avg employer tax

12% to 14%

Taxation

Tax breakdown - Employer
  • Social insurance tax for non-Saudi employees: 2%
  • Social insurance tax for Saudi employees: 12%


VAT

15%

Holidays / PTO

Public holidays
  • 1 May to 4 May: Eid al-Fitr Holiday
  • 8 Jul to 12 Jul: Eid al-Adha Holiday
  • 23 Sep: National Day

NB – these are estimated dates and are yet to be confirmed.

Sick days

Employees can take 120 days of sick leave each year, but the percentage of their salary that they receive during that time is determined by the number of days that they take off sick:

  • First 30 days: 100% of salary
  • Days 31 to 90: 33% of salary
  • Days 91 to 120: 0% of salary

The sick leave laws only apply to organizations with over 20 members of staff. All employees who take sick leave must provide medical certificates as proof.

Maternity leave

Paid maternity leave is ten weeks, starting four weeks prior to the day on which the baby is due. Employees with at least one year’s service receive 50% of their salary. Employees with at least three years’ service receive 100% of their salary.

Paternity leave

Paternity leave is for one day after the birth of the child.

Termination

Termination Process

The termination process is dependent on the type of contract, the reason for ending employment, the employment agreement, and/or any relevant collective agreements. If the employer cannot offer a valid reason for termination, they must pay compensation.

Notice Period

Notice periods are 30 days for monthly contracts or 15 days for any other type of contract.

Severance Pay

Severance pay is set in law as half a month’s of the employee’s final salary for each of the first five years and one month’s salary for each subsequent year of service. Under certain conditions related to misconduct or absence, the severance payment is not mandatory.

Probation Period

Typical probationary periods are 90 days.

Tax Calculation

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SA
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Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

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Saudi Arabia

Currency
Saudi riyal (SAR)
Payroll Frequency
Weekly or monthly
Employer Taxes
12 to 14%

About 

Saudi Arabia

Saudi Arabia is a largely desert, oil-rich country that occupies most of the Arabian Peninsula and is home to the two holiest sites of Islam.

Overview

Population
34,218,169
Language
Arabic
Capital
Riyadh
Currency
Saudi riyal (SAR)
Country code
+966
Min wage
4,000 SAR per month
Working hours
8 hours per day
Weekdays
Saturday to Thursday
Work hours per week
48 hours per week

Payroll

Cycle

Weekly or monthly

Avg employer tax

12% to 14%

Taxation

Tax breakdown - Employer
  • Social insurance tax for non-Saudi employees: 2%
  • Social insurance tax for Saudi employees: 12%


VAT

15%

Holidays / PTO

Public holidays
  • 1 May to 4 May: Eid al-Fitr Holiday
  • 8 Jul to 12 Jul: Eid al-Adha Holiday
  • 23 Sep: National Day

NB – these are estimated dates and are yet to be confirmed.

Sick days

Employees can take 120 days of sick leave each year, but the percentage of their salary that they receive during that time is determined by the number of days that they take off sick:

  • First 30 days: 100% of salary
  • Days 31 to 90: 33% of salary
  • Days 91 to 120: 0% of salary

The sick leave laws only apply to organizations with over 20 members of staff. All employees who take sick leave must provide medical certificates as proof.

Maternity leave

Paid maternity leave is ten weeks, starting four weeks prior to the day on which the baby is due. Employees with at least one year’s service receive 50% of their salary. Employees with at least three years’ service receive 100% of their salary.

Paternity leave

Paternity leave is for one day after the birth of the child.

Termination

Termination Process

The termination process is dependent on the type of contract, the reason for ending employment, the employment agreement, and/or any relevant collective agreements. If the employer cannot offer a valid reason for termination, they must pay compensation.

Notice Period

Notice periods are 30 days for monthly contracts or 15 days for any other type of contract.

Severance Pay

Severance pay is set in law as half a month’s of the employee’s final salary for each of the first five years and one month’s salary for each subsequent year of service. Under certain conditions related to misconduct or absence, the severance payment is not mandatory.

Probation Period

Typical probationary periods are 90 days.

Tax Calculation

*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
SA
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation