🇸🇦 Saudi Arabia · Employment & Labor
Hiring rules, employment contracts, payroll, social insurance, and EOR options.
Quick answer
Saudi employment under the Labour Law (regulated by MHRSD) has no employee income tax and no general minimum wage for expatriates, but gives paid annual leave (21 days, rising to 30 after five years), an end-of-service benefit on leaving, GOSI social insurance, and wage protection via the WPS. Disputes go to the Labour Courts.
Employment is governed by the Saudi Labor Law, administered by the Ministry of Human Resources and Social Development (HRSD); social insurance is handled by GOSI.
- Written contracts are required and registered through HRSD systems.
- End-of-service benefits are payable to employees on termination.
- Saudization (Nitaqat) sets targets for employing Saudi nationals.
Step-by-step
- 1
Get a written contract
You should have a written contract; for expatriates it is tied to your work permit and sponsorship/Qiwa registration.
- 2
Know your pay and hours rights
There is no general minimum wage for expatriates; standard hours are 8/day (reduced in Ramadan for Muslims), with overtime at 150%.
- 3
Understand leave
You get 21 days' paid annual leave, rising to 30 after five years, plus public holidays and sick leave.
- 4
Register for GOSI and WPS
You are enrolled in GOSI social insurance (occupational hazards for expats), and wages must be paid through the Wage Protection System.
- 5
Know the end-of-service benefit
On leaving you receive an end-of-service benefit based on your final wage and years of service.
- 6
Resolve disputes
Raise issues via Qiwa/amicable settlement and, if unresolved, the Labour Courts.
Checklist
- Written contract + Qiwa/permit (expats)
- No employee income tax
- Standard hours (8/day) + overtime 150%
- 21 days' leave (30 after 5 years) + sick leave
- GOSI social insurance
- Wage Protection System (WPS) payment
- End-of-service benefit
- Dispute route (Qiwa / Labour Courts)
Official authorities
- Ministry of Human Resources and Social Development (HRSD)
Labour law and standards.
Frequently asked questions
Is there income tax on salaries?
No — Saudi Arabia does not levy personal income tax on employment wages.
What is the end-of-service benefit?
A lump sum on termination based on final wage and length of service, broadly half a month per year for the first five years and a month per year after.
Is there a minimum wage?
There is no general statutory minimum wage for expatriates; a minimum applies to Saudi nationals for Saudization (Nitaqat) counting.
Official-information aggregation, not legal advice. Always verify on the authority's own site.
Government portals
- Saudi National Portal (my.gov.sa) — Saudi government services portal
- Absher (Ministry of Interior) — Residency (Iqama), visas, and entry/exit services
- Zakat, Tax and Customs Authority (ZATCA) — VAT, zakat, and customs
- Ministry of Investment (MISA) — Foreign-investment licensing (formerly SAGIA)