Hire in Saudi Arabia

The Kingdom of Saudi Arabia (KSA) extends over 2,149,690 square kms across most of the northern and central Arabian Peninsula. It is the world’s largest producer and exporter of oil. Petroleum is an integral part of the country’s economy, although in recent decades it has increasingly diversified its economy to produce and export a variety of industrial goods. Expatriates are estimated to account for 75% of Saudi Arabia’s workforce.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Saudi Arabia.

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EOR

Easily onboard your remote talent in Saudi Arabia through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Saudi Arabia

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Cost of living index

$$$ (53 of 139 nations)

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Currency

Saudi Riyal (SR, SAR, ر.س ,﷼)

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Payroll frequency

Monthly

Basic facts

The Kingdom of Saudi Arabia (KSA) extends over 2,149,690 square kms across most of the northern and central Arabian Peninsula. It is the world’s largest producer and exporter of oil. Petroleum is an integral part of the country’s economy, although in recent decades it has increasingly diversified its economy to produce and export a variety of industrial goods. Expatriates are estimated to account for 75% of Saudi Arabia’s workforce.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Saudi Arabia.

Capital

Riyadh

Official language/s

Arabic

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Population

36.94 million (2023 est.)

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VAT - standard rate

15%

If a public holiday falls on a weekend, a day in lieu is granted either on a day preceding or following the weekend.

The national holidays mentioned below are valid for the year 2025.

 

*These holidays are determined according to local sightings of various phases of the moon, so the dates given above are only approximations. The exact dates are to be determined by the government and specified as it gets closer to the holiday.

February 22Founding Day
March 11Flag Day
March 30 - April 2*Eid al-FitrMovable - 4 days effective from the day after the 29th Ramadan per Um al-Qura calendar
June 5 - 8*Eid al-AdhaMovable - 4 days effective from the day of Arafat
September 23National DayThe day of the unification of the Kingdom

The approximate time for sharing the contract with an employee in Saudi Arabia is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • Trade unions and labor associations are not permitted in KSA.
  • The weekdays in Saudi Arabia are from Saturday to Thursday.
  • All employers must “authenticate” or digitize the employment contracts of new hires.
  • The Saudization policy requires employers in the private sector to employ a minimum number of Saudi nationals.
  • Onboarding is currently restricted to only Saudi citizens due to limited service scope.

The social security system in Saudi Arabia includes social insurance, occupational hazard, and unemployment insurance.

Employers contribute a total of 12% to Saudi nationals’ social security and 2% to non-Saudi nationals’ social security. The breakdown of the total contributions is as follows:

Employee Citizenship

Benefits

Employer Rates

Employee Rates

Saudi nationals Social Insurance 9% 9%
Occupational Hazard 2%
Unemployment insurance 1% 1%
Total 12% 10%
non-Saudi nationals Occupational Hazard 2%
Total 2%

Working Hours

Working hours cannot exceed eight hours per day or 48 hours per week. The worker cannot work for more than five consecutive hours without a period of rest, prayer, and food for at least half an hour, and the worker must not remain in the workplace for more than 12 hours per day.

 

Overtime

The actual working hours must not exceed 10 hours per day or 60 hours per week. Work on holidays is paid at 150% of the employees’ normal wages.

Probation Period

The probation period cannot exceed 90 days and may be extended for a maximum of 180 days with the written consent of the worker.

 

Termination Notice Period

The fixed-term contract of employment must terminate at the end of its term. If the contract is indefinite,  either party must notify the other party by a written notice of at least 60 days if the worker’s wage is paid monthly, or 30 days for all other cases. A party that terminates a contract without giving due notice is liable to pay cash in lieu of notice.

Working Hours

Working hours cannot exceed eight hours per day or 48 hours per week. The worker cannot work for more than five consecutive hours without a period of rest, prayer, and food for at least half an hour, and the worker must not remain in the workplace for more than 12 hours per day.

 

Overtime

The actual working hours must not exceed 10 hours per day or 60 hours per week. Work on holidays is paid at 150% of the employees’ normal wages.

Probation Period

The probation period cannot exceed 90 days and may be extended for a maximum of 180 days with the written consent of the worker.

 

Termination Notice Period

The fixed-term contract of employment must terminate at the end of its term. If the contract is indefinite,  either party must notify the other party by a written notice of at least 60 days if the worker’s wage is paid monthly, or 30 days for all other cases. A party that terminates a contract without giving due notice is liable to pay cash in lieu of notice.

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The social security system in Saudi Arabia includes social insurance, occupational hazard, and unemployment insurance.

Employers contribute a total of 12% to Saudi nationals’ social security and 2% to non-Saudi nationals’ social security. The breakdown of the total contributions is as follows:

Employee Citizenship

Benefits

Employer Rates

Employee Rates

Saudi nationals Social Insurance 9% 9%
Occupational Hazard 2%
Unemployment insurance 1% 1%
Total 12% 10%
non-Saudi nationals Occupational Hazard 2%
Total 2%