Saudi Arabia

Saudi Arabia, a key economic player in the Middle East, offers a dynamic business environment characterized by its Vision 2030 initiative, aiming to diversify the economy and enhance the private sector's role. The Kingdom's labor market is undergoing significant reforms to modernize employment practices and improve worker rights.
Contractor Management
EOR
Payroll
Contractor of Record
Currency
Saudi Riyal (SAR)
Payroll Frequency
Monthly
Employer Taxes
12 to 14%

Overview

Population
~ 35 million
Language
Arabic
Capital
Riyadh
Currency
Saudi Riyal (SAR)
Country code
+966
Min wage
5,800 SAR / month
Working hours
8 hours/day, 6 days/week
Weekdays
Sunday to Thursday
Work hours per week
48 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary

Not mandatory; subject to employer discretion

Avg employer tax

12% to 14%

Tax Breakdown

Personal Income Tax (PIT):

Saudi nationals contribute 10% to the General Organization for Social Insurance (GOSI), while employers contribute 12% for pensions and 2% for unemployment insurance. Expatriates are not subject to GOSI contributions.

Corporate Income Tax (CIT):

Standard Rate
20% on net adjusted profits
Zakat
2.5% on the company's Zakat base (net worth)
Special Rates
Income from oil and hydrocarbon production is taxed at rates ranging from 50% to 85%

Social Security Contributions:

Saudi nationals contribute 10% to the General Organization for Social Insurance (GOSI), while employers contribute 12% for pensions and 2% for unemployment insurance. Expatriates are not subject to GOSI contributions.

VAT

VAT

15%

Tax Calculation for Saudi Arabia
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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
How it works

Onboarding Process

Onboarding in Saudi Arabia typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing; include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Ministry of Human Resources and Social Development (MHRSD) and GOSI

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Saudi Arabia
When drafting an employment contract for employees in Saudi Arabia, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Paid by employer for the first 30 days; thereafter, by GOSI
Maternity leave
  • 12 weeks (6 weeks postnatal)
Paternity leave
  •  3 days to be taken within 7 days of childbirth

Bereavement Leave:

  • 3 days for the death of a sibling

Hajj Leave:

  • 10 to 15 days of paid leave for employees performing the pilgrimage for the first time

Annual Leave
  • 21 days for employees with 1–5 years of service; 30 days for employees with more than 5 years
10 Public holidays in Saudi Arabia

Note: Islamic holidays are based on the lunar calendar and may vary annually.

22nd
Founding Day
1st
Ramadan Begins (Tentative)
11th
Flag Day
30th
Eid al-Fitr
31st
Eid al-Fitr Holiday
1st
Eid al-Fitr Holiday
5th
Arafat Day (Tentative)
6th
Eid al-Adha (Tentative)
7th
Eid al-Adha
23th
National Day
  • 22 February (Friday): Saudi Founding Day
  • 9–13 April (Tuesday–Sunday): Eid al-Fitr
  • 15 June (Saturday): Arafat Day
  • 16–19 June (Sunday–Wednesday): Eid al-Adha
  • 23 September (Monday): Saudi National Day

Note: these are estimated dates and are yet to be confirmed.

Termination Process

Notice Period

  • Employee-Initiated: 30 days
  • Employer-Initiated: 60 days

Severance Pay

Not mandatory; subject to employment agreements

Termination During Probation

Either party can terminate with 30 days' notice

Probation Period

  • Maximum Duration: 180 days
  • Extension: No additional agreement required to extend beyond initial 90 days
  • Termination During Probation: Either party can terminate with 30 days' notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Saudi Arabia is experiencing a significant rise in remote work, transforming its traditional office culture. This growth is driven by a combination of factors:

  • Tech Surge: Reliable internet connectivity and video conferencing tools are fueling a seamless remote work environment. The $15 billion investment in information and communication technology (ICT) infrastructure since 2017 exemplifies the government's commitment to this digital transformation. This robust infrastructure is crucial for the tertiary sectors that enable remote work to function smoothly.
  • Employer Benefits: Companies are recognizing the advantages of remote work, including cost savings, access to a wider talent pool, and a more satisfied workforce. A prime example is Saudi Telecom Company (STC), a leading employer embracing remote work as a long-term strategy. 
  • Government Push: The Saudi government actively promotes remote work through initiatives like infrastructure upgrades, telecommuting policy development, and flexible work arrangement incentives. For instance, in 2022, The Saudi Arabian Ministry of Human Resources and Social Development (MHRSD) approved the implementation of work-from-home policies in the public sector

Projected Growth: The Gulf Cooperation Council countries, which include Saudi Arabia, are projected to have a remote workforce exceeding 52%, with a growth rate of 35%. This trend holds promise for both businesses and employees, shaping the future of work in the kingdom.

Challenges of Remote Hiring in _

Despite the surge in remote work, hiring remote employees in Saudi Arabia presents unique challenges. Here are some key complexities to consider:

  • Work Permits and Visas: Saudi Arabia has a strict sponsorship system for foreign workers. To hire a remote worker who isn't a citizen, you'll need to sponsor their Iqama and navigate the application process. This can be time-consuming, involve significant paperwork, and come with additional costs.
  • Legal and Regulatory Considerations: Labor laws and regulations might differ when employing someone remotely. Understanding employment contracts, payroll taxes, and data privacy laws that apply to remote workers in a different location can be intricate.
  • Cultural Nuances: Effective communication and collaboration are essential for any remote team. However, cultural differences in Saudi Arabia, such as communication styles and work expectations, can add complexity to managing remote employees. Building trust and rapport virtually requires extra effort.

Data Security and Compliance: Ensuring data security is paramount, especially when employees access company information remotely. Implementing robust cybersecurity measures and data encryption protocols is crucial. Additionally, you'll need to comply with any relevant data privacy regulations in Saudi Arabia.

Simplifying Remote Hiring in _ with RemotePass 

Building a remote team in Saudi Arabia offers exciting possibilities, but navigating the complexities of hiring can be daunting. RemotePass Employer of Record (EOR) services streamline the process, allowing you to focus on finding top talent. Here's how:

  • Compliance Made Easy: RemotePass handles the entire process, ensuring your foreign hires have the necessary documentation to work legally. We also ensure adherence to KSA's comprehensive labor laws, minimizing risks of non-compliance.
  • Reduced HR Burden: RemotePass takes care of everything, from salary calculations to social security contributions, freeing your team to focus on core business activities.
  • Access to Top KSA Talent: Our extensive network within the Kingdom grants access to a wider pool of qualified candidates, ensuring you attract the best fit for your needs.
  • Cost-Effectiveness: RemotePass leverages our existing infrastructure, offering economies of scale that translate to cost savings for you. Additionally, our expertise minimizes the risk of non-compliance penalties.
  • Scalability and Flexibility: Our solutions adapt to your evolving needs. Whether you're starting with a single hire or require a larger remote team, RemotePass provides the flexibility to scale your workforce seamlessly.

Book a demo to simplify hiring in KSA.

Grow Your Team in Saudi Arabia
with RemotePass

Saudi Arabia offers a strategic location and a growing economy for businesses seeking to expand in the Middle East.RemotePass simplifies the process of hiring and managing employees in Saudi Arabia, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Saudi Arabia.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Saudi Arabia

Saudi Arabia, a key economic player in the Middle East, offers a dynamic business environment characterized by its Vision 2030 initiative, aiming to diversify the economy and enhance the private sector's role. The Kingdom's labor market is undergoing significant reforms to modernize employment practices and improve worker rights.
Contractor Management
EOR
Payroll
Contractor of Record
العملة
Saudi Riyal (SAR)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
12 to 14%

نظرة عامة

التركيبة السكانية
~ 35 million
اللغة
Arabic
العاصمة
Riyadh
العملة
Saudi Riyal (SAR)
رمز الاتصال الدولي
+966
الحد الأدنى للأجور
5,800 SAR / month
ساعات العمل
8 hours/day, 6 days/week
أيام الأسبوع
Sunday to Thursday
ساعات العمل اسبوعيا
48 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary

Not mandatory; subject to employer discretion

متوسط ​​ضريبة صاحب العمل

12% to 14%

تحصيل الضرائب

Personal Income Tax (PIT):

Saudi nationals contribute 10% to the General Organization for Social Insurance (GOSI), while employers contribute 12% for pensions and 2% for unemployment insurance. Expatriates are not subject to GOSI contributions.

Corporate Income Tax (CIT):

Standard Rate
20% on net adjusted profits
Zakat
2.5% on the company's Zakat base (net worth)
Special Rates
Income from oil and hydrocarbon production is taxed at rates ranging from 50% to 85%

Social Security Contributions:

Saudi nationals contribute 10% to the General Organization for Social Insurance (GOSI), while employers contribute 12% for pensions and 2% for unemployment insurance. Expatriates are not subject to GOSI contributions.

ضريبة القيمة المضافة

ضريبة القيمة المضافة

15%

حساب الضريبة في Saudi Arabia
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Top Countries
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Saudi Arabia عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Must be in writing; include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Ministry of Human Resources and Social Development (MHRSD) and GOSI

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Saudi Arabia
عند إعداد عقد عمل للموظفين في Saudi Arabia يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Paid by employer for the first 30 days; thereafter, by GOSI
إجازة الأمومة
  • 12 weeks (6 weeks postnatal)
إجازة الأبوة
  •  3 days to be taken within 7 days of childbirth

Bereavement Leave:

  • 3 days for the death of a sibling

Hajj Leave:

  • 10 to 15 days of paid leave for employees performing the pilgrimage for the first time

الإجازة السنوية
  • 21 days for employees with 1–5 years of service; 30 days for employees with more than 5 years
10 عطلات رسمية في Saudi Arabia

Note: Islamic holidays are based on the lunar calendar and may vary annually.

22nd
Founding Day
1st
Ramadan Begins (Tentative)
11th
Flag Day
30th
Eid al-Fitr
31st
Eid al-Fitr Holiday
1st
Eid al-Fitr Holiday
5th
Arafat Day (Tentative)
6th
Eid al-Adha (Tentative)
7th
Eid al-Adha
23th
National Day
  • 22 February (Friday): Saudi Founding Day
  • 9–13 April (Tuesday–Sunday): Eid al-Fitr
  • 15 June (Saturday): Arafat Day
  • 16–19 June (Sunday–Wednesday): Eid al-Adha
  • 23 September (Monday): Saudi National Day

Note: these are estimated dates and are yet to be confirmed.

عملية إنهاء العقود

Notice Period

  • Employee-Initiated: 30 days
  • Employer-Initiated: 60 days

Severance Pay

Not mandatory; subject to employment agreements

Termination During Probation

Either party can terminate with 30 days' notice

Probation Period

  • Maximum Duration: 180 days
  • Extension: No additional agreement required to extend beyond initial 90 days
  • Termination During Probation: Either party can terminate with 30 days' notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Saudi Arabia is experiencing a significant rise in remote work, transforming its traditional office culture. This growth is driven by a combination of factors:

  • Tech Surge: Reliable internet connectivity and video conferencing tools are fueling a seamless remote work environment. The $15 billion investment in information and communication technology (ICT) infrastructure since 2017 exemplifies the government's commitment to this digital transformation. This robust infrastructure is crucial for the tertiary sectors that enable remote work to function smoothly.
  • Employer Benefits: Companies are recognizing the advantages of remote work, including cost savings, access to a wider talent pool, and a more satisfied workforce. A prime example is Saudi Telecom Company (STC), a leading employer embracing remote work as a long-term strategy. 
  • Government Push: The Saudi government actively promotes remote work through initiatives like infrastructure upgrades, telecommuting policy development, and flexible work arrangement incentives. For instance, in 2022, The Saudi Arabian Ministry of Human Resources and Social Development (MHRSD) approved the implementation of work-from-home policies in the public sector

Projected Growth: The Gulf Cooperation Council countries, which include Saudi Arabia, are projected to have a remote workforce exceeding 52%, with a growth rate of 35%. This trend holds promise for both businesses and employees, shaping the future of work in the kingdom.

Challenges of Remote Hiring in _

Despite the surge in remote work, hiring remote employees in Saudi Arabia presents unique challenges. Here are some key complexities to consider:

  • Work Permits and Visas: Saudi Arabia has a strict sponsorship system for foreign workers. To hire a remote worker who isn't a citizen, you'll need to sponsor their Iqama and navigate the application process. This can be time-consuming, involve significant paperwork, and come with additional costs.
  • Legal and Regulatory Considerations: Labor laws and regulations might differ when employing someone remotely. Understanding employment contracts, payroll taxes, and data privacy laws that apply to remote workers in a different location can be intricate.
  • Cultural Nuances: Effective communication and collaboration are essential for any remote team. However, cultural differences in Saudi Arabia, such as communication styles and work expectations, can add complexity to managing remote employees. Building trust and rapport virtually requires extra effort.

Data Security and Compliance: Ensuring data security is paramount, especially when employees access company information remotely. Implementing robust cybersecurity measures and data encryption protocols is crucial. Additionally, you'll need to comply with any relevant data privacy regulations in Saudi Arabia.

Simplifying Remote Hiring in _ with RemotePass 

Building a remote team in Saudi Arabia offers exciting possibilities, but navigating the complexities of hiring can be daunting. RemotePass Employer of Record (EOR) services streamline the process, allowing you to focus on finding top talent. Here's how:

  • Compliance Made Easy: RemotePass handles the entire process, ensuring your foreign hires have the necessary documentation to work legally. We also ensure adherence to KSA's comprehensive labor laws, minimizing risks of non-compliance.
  • Reduced HR Burden: RemotePass takes care of everything, from salary calculations to social security contributions, freeing your team to focus on core business activities.
  • Access to Top KSA Talent: Our extensive network within the Kingdom grants access to a wider pool of qualified candidates, ensuring you attract the best fit for your needs.
  • Cost-Effectiveness: RemotePass leverages our existing infrastructure, offering economies of scale that translate to cost savings for you. Additionally, our expertise minimizes the risk of non-compliance penalties.
  • Scalability and Flexibility: Our solutions adapt to your evolving needs. Whether you're starting with a single hire or require a larger remote team, RemotePass provides the flexibility to scale your workforce seamlessly.

Book a demo to simplify hiring in KSA.

نمِّ فريقك في Saudi Arabia
مع ريموت باس

Saudi Arabia offers a strategic location and a growing economy for businesses seeking to expand in the Middle East.RemotePass simplifies the process of hiring and managing employees in Saudi Arabia, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Saudi Arabia.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

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