SAUDI ARABIA PEO & EOR
Hire in Saudi Arabia without a local entity today
DID YOU KNOW
- Saudi Arabia is home to the world’s largest continuous sand desert, the Rub’ al Khali (Empty Quarter), spanning over 650,000 square kilometers.
- Riyadh’s Kingdom Centre Tower has one of the world’s highest sky bridges, offering panoramic views of the capital.
- Saudi Arabia is the birthplace of Islam, with Mecca and Medina being the two holiest cities visited by millions of pilgrims annually.
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SAUDI ARABIA EOR Services
A Gateway to the Gulf’s Strategic Business Arena
Saudi Arabia offers strategic access to the broader Middle East and strong alignment with Vision 2030’s economic reforms, making it a compelling destination for international businesses. With an emerging diversification plan and large-scale infrastructure investment, it presents significant potential for global expansion.
However, local employment customs, the Saudization requirements, and legal complexities can pose compliance challenges. By working with Gibson Watts Global as your EOR in Saudi Arabia, you benefit from full-service payroll, compliance, visa assistance, and HR functions—ensuring your operations remain fully compliant with local labor law.
Working in Saudi Arabia
Financial Year Dates
Saudi Arabia’s financial year follows the calendar year (January 1 to December 31).
Minimum Wage
The minimum wage for Saudi nationals in the private sector is set at 4,000 SAR per month in 2025. There is no statutory minimum wage for expatriates, whose compensation is negotiated individually.
Standard working hours
In Saudi Arabia, the standard working hours are generally 8 hours per day and 48 hours per week. However, during the holy month of Ramadan, Muslim employees have reduced working hours, typically limited to 6 hours per day or 36 hours per week.
Overtime
Overtime work is permitted but must be compensated at a premium rate (150% of the regular hourly wage).
Holiday Allowance
In Saudi Arabia, employees are entitled to a minimum of 21 days of paid annual leave per year if their service with the same employer is less than 5 years. This increases to 30 days after 5 years of continuous service.
Sick Leave
An employee whose illness is validified by a doctor shall be eligible for a paid sick leave for the first (30) days, three quarters of the wage for the next (60) days.
Maternity & Paternity Leave
In Saudi Arabia, maternity leave is 12 weeks. Paternity leave is 3 days, to be taken within the first seven days of the child’s birth.
Public Holidays
Saudi public holidays include both religious and national observances:
- Foundation Day
- Flag Day
- Eid al-Fitr
- Arafat/Eid al-Adha
- National Day
Social Contributions
In Saudi Arabia, social insurance is managed by the General Organisation for Social Insurance (GOSI). GOSI contributions are based on the basic salary, including housing allowance (in cash or kind). The limits are:
- Minimum salary for contribution: SAR 1,500/month.
- Maximum salary for contribution: SAR 45,000/month.
Income Tax
Saudi Arabia imposes no personal income tax on salaries for residents or non-residents.
Health Care
Saudi Arabia’s healthcare system is a mix of public and private providers, with the Ministry of Health (MOH) playing a central role in regulating and delivering services.
Visas
Foreign workers require employer-sponsored permits under the kafala system, though reforms under Vision 2030 are introducing more flexible labor controls. Employers must also comply with Saudization (Nitaqat) quotas, hiring a minimum percentage of Saudi nationals relative to company size and industry.
13th salary?
In Saudi Arabia, a 13th-month salary is not mandatory by law. However, some employers choose to offer it as a performance-based bonus or an end-of-year incentive. It’s often associated with the Eid al-Fitr holiday, marking the end of Ramadan.
Cultural Information
Saudi Arabia places a strong emphasis on hospitality and family—it is culturally common to invite colleagues home for meals or share coffee and dates during business introductions. Islamic heritage shapes daily life, with prayer breaks, Ramadan rhythms, and modest dress influencing workplace schedules and etiquette.