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Payroll and Benefits Guide Saudi Arabia

Last updated: Mar 03, 2026

Currency
Saudi Riyal (SAR)
Employer Taxes
2% to 12.00%
Payroll Frequency
Monthly
Employee Costs
10%
Capital
Riyadh
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Payroll Contributions
9.00%
Social Insurance Tax for Saudi employees, includes pension applied on income between 1,500 and 45,000 SAR monthly. Foreign workers are exempt from contributions to social insurance.
1.00%
Unemployment Insurance Tax for Saudi employees, applied on income between 1,500 and 45,000 SAR monthly. Foreign workers are exempt from contributions to unemployment insurance.
2.00%
Occupational Hazard
2% to 12.00%
Total Employment Cost

 

Employee Payroll Contributions
9.00%
Social Insurance Tax for Saudi employees, includes pension, applied on income between 1,500 SAR-45,000 SAR. Foreign workers are exempt from contributions to social insurance.
1.00%
Unemployment Insurance Tax for Saudi employees, applied on income between 1,500 SAR-45,000 SAR. Foreign workers are exempt from contributions to unemployment insurance.
10%
Total Employee Cost
Employee Income Tax
0.00%
There is no individual income tax regime in Saudi Arabia, earnings from employment are not subject to income tax.

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

For Saudization (Nitaqat) purposes, a Saudi worker must earn at least SAR 4,000 per month to be counted as a full Saudi employee. There is currently no universal statutory minimum wage covering all workers, and pay levels are otherwise determined by contract and market practice.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

In Saudi Arabia, the payroll frequency is weekly or monthly. The employer must make the payment for weekly employees once a week and make payments for monthly paid employees at least once a month.

13th Salary

13th-month payments are not mandatory. However, employers can pay performance-based bonuses at their discretion.

Working Hours

General

The working week in Saudi Arabia is typically 48 hours, 8 hours per day, 5 days per week. The working day may decrease to 6 hours a day during the period of Ramadan.

Overtime

  • Maximum Ordinary Hours: The standard work limit is 8 hours per day or 48 hours per week.3 Overtime is any hour worked in excess of these limits.
    • Ramadan Exception: For Muslim employees during the holy month of Ramadan, the maximum actual working hours are reduced to 6 hours per day or 36 hours per week.5 Any work beyond this is considered overtime
  • Daily Maximum: An employee cannot work more than 11 hours in a single day (including overtime).
  • Consent: Overtime work is generally considered voluntary unless stipulated otherwise in the employment contract or required under exceptional or urgent circumstances (e.g., to prevent accidents or imminent loss).
  • Exemptions: High-ranking managerial positions and certain employees whose nature of work makes hour tracking difficult (e.g., some sales roles) are generally exempt from the standard working hours and overtime provisions (Article 108).

Mandatory Overtime Pay Rates (Article 107)

Saudi Labour Law mandates a minimum premium rate of 150% (Time and a half) for all overtime.9 The law also includes the concept of the wage being the Actual Wage (basic salary plus allowances) for calculation purposes.10

Day/Condition Minimum Compensation Rate (Statutory) Total Pay Rate Notes
Normal Overtime (Working Days) Hourly wage plus 50% of the hourly wage. 150% Applies to hours exceeding 8/day or 48/week (or 6/day or 36/week during Ramadan for Muslims).
Weekly Rest Days & Public Holidays Hourly wage plus 50% of the hourly wage. 150% All hours worked on the weekly rest day (typically Friday) or on an official holiday are considered overtime. This rate is paid in addition to the employee’s regular wage for the day, which effectively results in double pay for the hours worked on that day.

Compensation Method: The employer can, with the consent of the worker, compensate overtime hours with equivalent paid compensatory leave instead of monetary payment.11

Leave

Annual Leave (vacation)

In Saudi Arabia (Article 109 of the Labor Law), the annual leave entitlement is dependent on the employee’s seniority as follows:

  • 21 days of annual leave for employees with one to five years of service
  • 30 days of annual leave for employees with more than five years of service

Employees may request ten additional days of unpaid leave per year, subject to the employer’s approval.

PTO carryover

In Saudi Arabia, statutory annual leave can be carried over by agreement, but it is not meant to accumulate indefinitely.

Note:

  • For Zapeo, automatic forfeiture is NOT allowed under law.

Public Holidays

The local government decides each year if holidays falling on the weekend are lost or moved to a working day in lieu.

Religious holidays are determined by the lunar cycle and will show as tentative until they are confirmed nearer the date of the holiday.

Date Day Holiday Holiday Notes
February 22, 2026 Sunday Founding Day
February 23, 2026 Monday Founding Day (Observed)
March 20, 2026 Friday Eid al-Fitr
March 21, 2026 Saturday Eid al-Fitr
March 22, 2026 Sunday Eid al-Fitr
May 26, 2026 Tuesday Arafat Day
May 27, 2026 Wednesday Eid al-Adha
May 28, 2026 Thursday Eid al-Adha
May 29, 2026 Friday Eid al-Adha
May 30, 2026 Saturday Eid al-Adha
September 23, 2026 Wednesday Saudi National Day

Sick Days

Employees are entitled to up to 120 days of sick leave per year (continuous or intermittent):
– First 30 days: full pay
– Next 60 days: 75% pay
– Final 30 days: unpaid
Sick leave is paid by the employer, and employees must provide a medical certificate.

Maternity Leave

Female employees are entitled to 12 weeks of maternity leave with full pay, in accordance with Article 151 of the Labour Law. At least six weeks of this leave must be taken after childbirth, and the employee is prohibited from working during the six weeks immediately following the birth.

Additional maternity-related benefits may be available under the social insurance system, but these are separate from the employer’s statutory obligation to provide 12 weeks of fully paid leave.

Paternity Leave

The father/partner is entitled to 3 days of paid paternity leave after the child’s birth (Article 113 of the Labour Law).

Parental Leave

There are no provisions in the law regarding parental leave.

Other Leave

Depending on the collective agreement/employment contract terms, an employee may be allowed additional leave types, once approved between the employer and employee, for the following:

  • Bereavement leave: In the event of the death of an immediate member, an employee is entitled to 2 days of bereavement leave.
  • Marriage leave: An employee is entitled to 3 days of leave in the event of their wedding.
  • Hajj leave/Pilgrimage leave: As per Article 114 of the Labor Law, an employee is entitled to 10 to 15 days (including the Eid Al-Adha holiday) to perform Hajj if the employee has completed at least 2 consecutive years of service with the employer. However, this entitlement arises only if the employee has not performed Haj previously.
Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

The termination process varies according to the employment set up and is  based on the type of employment contract and reason for termination.

The justifiable reasons for dismissal include misconduct, unauthorized absence, failure to perform job duties deemed essential, failure to comply with rules for health and safety, assaulting the employer, disclosure of industrial or trade secrets. When using fixed term contracts, justified dismissal can also be by non renewal of the contract at the end date, termination as specified in the contract’s terms, conversion of the contract to an indefinite term or expiration of the work permit (for expatriate employees).

Where the dismissal reason given is found to be illegitimate, the employee will be entitled to additional compensation: if the contract is for a fixed term, the employee will be entitled to his wages for the remaining period of his contract. If the contract was for an indefinite term, the employee will be entitled to 15 days wages for each year of service.  in both cases the minimum compensation may not be less than two months’ wages.

It is also possible to end employment via a Mutual Termination Agreement providing there is written consent from the employee.

It is not permitted to terminate workers whilst they are on maternity or medical leave.

Salary payment interval / date Final payment on termination Bank account/payment-method requirement
For monthly-paid employees: salaries must be paid by the 10th day of the following month under the national Wage Protection System. Upon termination the employer must settle all outstanding wages and end-of-service benefits. The law provides for the calculation of end-of-service gratuity (half a month’s wage per year for first 5 years, one month per year thereafter) under Art 84 of the Labour Law. The national Wage Protection System (WPS) mandates that wages be paid via approved electronic channels which typically means deposit into a bank or licensed financial institution account.

Notice Period

In Saudi Arabia, the notice period is dependent on the type of contract in place.

For termination or resignation of an indefinite term contract (open-ended and paid monthly), 60 days’ notice is required. For other workers, 30 days notice is required.

Probation Period

In Saudi Arabia, the probation periods may vary depending on the employment contract in place. However, the probation period is typically 90 days and may be extended subject to the employee’s written consent but cannot exceed 180 days.

Severance Pay

End of Service Benefits (EOSB) is payable only at the end of the employment relationship, not before. Both Saudi and Non-Saudi employees are entitled to EOSB.

If the employer ends the employment, the benefit is calculated by adding ½ a month’s wage for each of the first 5 years and 1 month’s wage for each subsequent year of service. For fractions of a year, the employee is entitled to proportionate EOSB. EOSB is calculated on the basis of the employee’s last salary.

If the employee resigns, they are entitled to 1/3 of the award after service of no less than 2 consecutive years and not more than 5 years of service. 2/3 if their service is in excess of 5 successive years, but less than 10 years; and to the full award if their service amounts to 10 or more years.

If an employee is called to military service or cannot work because of force majeure, they are entitled to EOSB. Female employees are entitled to EOSB if they resign within 6 months of marriage or within 3 months of childbirth.

Setting Up a Business

Setting up a legal entity

Login to the Ministry of Commerce online system used for registration here and follow the registration process:

  • Access the service.
  • Enter your username and password.
  • Select [My Commercial Registrations] and then select [Issue Commercial Registry].
  • Choose the activity level (First, Second or Third).
  • The commercial registration period between one to five years.
  • Record all data related to fiscal year, capital, facility address and contact information.
  • Confirm the request and select [send].
  • A payment bill will be issued, and you will receive a text message on your phone.
  • After-Submission: When the payment is completed, you can benefit from the service by simply printing the commercial registry without having to visit any of the branches of the Ministry.

Registration as an employer

Employers must register with the regional GOSI office within two weeks of initiating activities by filing Form 1. Employers must register all new workers by the 15th of the month following the month in which the new workers were hired.

New Employee Registration

Employees must be registered as soon as the employment contract has been signed. Expat employees are registered during the visa application process and must also be registered with GOSI. The GOSI registration process is completed through an online GOSI portal and each entity has a unique GOSI number. Saudi employees must be added as part of the onboarding process on the first working day.

Immigration

For an employee to acquire a work visa in Saudi Arabia, a third-party national must be sponsored by an employer. The employer must be registered with the Ministry of Interior and a file is opened with all the information on the employer’s foreign employees. Saudi Arabia’s quota system and nationalization program can make the process of employing a foreign national relatively complex and restrictive. Applicable procedures involve a home-country consular process followed by several post-arrival steps before final residency rights are granted.

Business travelers typically apply for a Business Visit Visa at a Saudi consular post once they receive a government-approved letter of invitation from a sponsor in Saudi Arabia. Business Visit Visas are usually valid for three months (single entry) or 12 months (multiple entry), or up to five years (multiple entry) for citizens of countries that signed bilateral visa agreements with Saudi Arabia. The maximum allowable duration of stay under a single-entry visa for three and six months is 30 days; for visas with other validities it is 90 days.

Saudi Arabia now offers a temporary work visa via the Qiwa platform for certain foreign nationals, allowing work for up to 90 days per issuance within a one-year period, subject to specific eligibility and Saudization/WPS compliance conditions.

For long-term work, foreign nationals can apply for a Work Permit and Resident ID Card, which is valid for up to one year with the possibility of extensions.
This does not apply to citizens from Bahrain, United Arab Emirates, Kuwait, and Oman. Citizens from these countries may enter with their ID.

Find the estimation here and the guide for issuing a WP for foreigners here.

 

VAT

General

The standard of VAT in Saudi Arabia is 15.00%.

Stay up to date on payroll & employment law changes

Version History

March 21, 2022
The father/partner is now entitled to 3 days of paid Paternity leave after the child’s birth (Article 113 of the Labour Law).
Probation period has been updated.
Payroll contributions and personal income tax rates have been updated.
April 18, 2021
The monthly minimum wage has increased from 3,000 to 4,000 SAR.
More

Questions & Answers

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Peter
Peter
5 years ago

If I am hiring in Saudi Arabia, are there laws about hiring local Saudi residents?

Alex Margolin
Alex Margolin
5 years ago
Reply to  Peter

Under the Nitaqat program implemented by the Ministry of Labor, a certain percentage of the workforce must be composed of Saudi citizens. The number vary from industry to industry.

In general, companies receive a rating as premium, green, yellow or red based on how many Saudi citizens they employ. Those that have higher ratings have better latitude in recruiting. Those with low ratings face the possibility of fines.

Pciong Gutierrez
Pciong Gutierrez
5 years ago
Reply to  Alex Margolin

I’m 14yrs.now in my company how to compute my severance?

Erez Greenberg
Erez Greenberg
5 years ago

Hi, this depends on the type of contract you have and the reason for ending your employment. However, it’s common that once the employment contract ends, the employee is entitled to severance payment that is equal to half of one month’s average wages for each of the first five years of employment, and equal to a full month’s wages for each year of work after the fifth year. (Individual cases vary based on employee contract and cause for terminations so please check regarding your specifics)

Sunil Rai
Sunil Rai
4 years ago

however company send me back in my country without paiying benefit service , what i do to get my benefit ?

Erez Greenberg
Erez Greenberg
4 years ago
Reply to  Sunil Rai

Hi Sunil, we cannot answer this for you since this requires specific legal assistance. If you have any general labor law questions, we’d be happy to help.

Anna
Anna
4 years ago

Any retirement benefits?

Emily Kuhnert
Emily Kuhnert
4 years ago
Reply to  Anna

Hi Anna, thank you for your question. Are you an ex-pat or a Saudi national?

Aaron
Aaron
4 years ago

Hi, is there any incentive of 10K riyals if you completed 10 years in the company?

Alex Margolin
Alex Margolin
4 years ago
Reply to  Aaron

Hi Aaron, this would depend on the company and the contract agreement.

Muhammad Farhan Arshad
Muhammad Farhan Arshad
4 years ago

If I am going on unpaid leaves for 2 months then what laws says about leave balance count. Does my leave balance will accumulate for these 2 months or not?

Erez Greenberg
Erez Greenberg
4 years ago

Hi Muhammad, this depends on the agreement between you and your employer.

Jakhongir Tolipov
Jakhongir Tolipov
4 years ago

hi, I have 2 years contract with my company, Now im married 3000 sar is not enough for my family, I have been working in current company almost 1 year. I want to finish my contract and transfer to another employer! But my employer and HR are saying me that i Need to pay for remaining 12 months of contract (36000 sar) is it legal or not? Thanks!

Last edited 4 years ago by Jakhongir Tolipov
Emily Kuhnert
Emily Kuhnert
4 years ago

Hi, thank you for your question. We recommend that you speak with a labor or immigration lawyer to help you understand what your options are.

IssaC Robert
IssaC Robert
4 years ago

Hi, if the company has informed of non-renewal of the contract before 2 months remaining of contract and is accepted by the staff, is the staff entitled to additional off in the week to look for another job?

Erez Greenberg
Erez Greenberg
4 years ago
Reply to  IssaC Robert

Hi Issac, when a work contract is terminated (and non-renewal of a contract is considered termination), the employee is entitled to either 8 hours off per week or an entire day off per week to search for another job.

Tayyab Mehmood
Tayyab Mehmood
4 years ago

Hi
I want to know our company didn’t show up /give us our salary details and overtime (salary slip) in saudi law have any rule for this can you update me please.
Thanks

Erez Greenberg
Erez Greenberg
4 years ago
Reply to  Tayyab Mehmood

Hi Tayyab, Employers are supposed to provide their employees with salary details on their payslips.

Muhammed jimada hussain
Muhammed jimada hussain
4 years ago

When you sign a contract with a company in ksa while you are still in your country, when are you suppose to start to be recieving salary, is it from the date you sign the contract or after joining the company

Emily Kuhnert
Emily Kuhnert
4 years ago

Hi Muhammed, thank you for your question. You begin to receive wages from the day you start to work, not from the day you sign your contract (unless the dates are the same). Usually, the start date is agreed upon and outlined in the employment agreement.

Aziz Muhammed
Aziz Muhammed
4 years ago

Hi, I was on unpaid leave for more than 6 months. Company is saying this was my decision and is not including this term in my end of service? Are they right?

Emily Kuhnert
Emily Kuhnert
4 years ago
Reply to  Aziz Muhammed

Hi Aziz, thank you for your question. This is correct, this does not count towards the time you were employed.

Nagona Isaac
Nagona Isaac
4 years ago

Am 2 morths now in Saudi Arabia ,but am not paid but my Employer tells me that I have to first state work then be paid . Is it true or? And how can I be paid

Emily Kuhnert
Emily Kuhnert
4 years ago
Reply to  Nagona Isaac

Hi, thank you for your question, can you please clarify what you mean by “I have to first state work?” Do you have a proper work visa?

Shakeel
Shakeel
4 years ago

Is it possible to transfer salaries to Non-Sponsored expat workers?
What’s the best solution?
What are the Pros & Corns?

Last edited 4 years ago by Shakeel
Emily Kuhnert
Emily Kuhnert
4 years ago
Reply to  Shakeel

Hi Shakeel, does the worker have a valid long-term work permit? If so, you can pay them like you would pay any other employee. If they do not have a valid visa or permit to be able to live and work in Saudi Arabia, it is not legally possible to employ said person.

Jack
Jack
4 years ago

Does weekend consider in annual leave

Emily Kuhnert
Emily Kuhnert
4 years ago
Reply to  Jack

Hi Jack, thank you for your question. No, weekends are not counted in annual leave, the law is actually quite strict. Employers are subject to fines if they include weekends in annual leave.

C McGregor
C McGregor
1 year ago
Reply to  Emily Kuhnert

Hi Emily, do you know where you can find this rule regarding weekends in the labor law?

Rotem Kraus
Rotem Kraus
1 year ago
Reply to  C McGregor

The relevant provisions can be found in Article 98 to 117 of the Saudi Labor Law, the rules regarding rest days and leave is outlined.

Vicky
Vicky
4 years ago

Am 2 morths now in Saudi Arabia ,but am not paid but my Employer tells me that I have to first start work then be paid . Is it true or? And how can I be paid

Erez Greenberg
Erez Greenberg
4 years ago
Reply to  Vicky

Once you begin working the employer must make the payment for weekly employees once a week and make payments for monthly paid employees at least once a month.

Kate Ineson
Kate Ineson
4 years ago

Is there a legal requirement to provide flights to non-Saudi nationals as part of their package?

Erez Greenberg
Erez Greenberg
4 years ago
Reply to  Kate Ineson

Employers are responsible for paying for the employee’s airfare from their home country to Saudi Arabia when they join the company and for their return after contract completion. When the contract is terminated during the probation period or if it was the worker’s fault, the employer does not need to pay for the return ticket.

LATIF BHISTI
LATIF BHISTI
4 years ago

HOW MANY DEDUCTION IF I WILL SUBMITTE MY RESIGN BEFORE MY IQAMA EXIPRE.

Emily Kuhnert
Emily Kuhnert
4 years ago
Reply to  LATIF BHISTI

Hi Latif, thank you for your question. The deduction remains the same, regardless of when your Iqama expires.

acc
acc
3 years ago

i resign is it okay that my employer did not give me my retro active salary. 1 resign after 6months after they increase my salary and they give retro after 6 months but i did not receive coz the reason is i resign is that ok

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  acc

As this is quite specific to this worker, we would advise the worker to contact a local lawyer and review the contract/agreement terms.

HHH
HHH
3 years ago

Hi. If you are absent for 1 day, is it right to deduct also from your housing allowance this one day?

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  HHH

Are you referring to absence due to illness? In Saudi Arabia workers are entitled to full pay during the first 30 days of illness followed by a period of reduced pay.

Noel
Noel
1 year ago
Reply to  Erez Greenberg

what if absent without valid reason, does other allowances like housing,transpo and food allowance will deduct also?

Rotem Kraus
Rotem Kraus
1 year ago
Reply to  Noel

In some cases, allowances like housing, transportation, and food may be prorated based on attendance or actual workdays. For specific guidance, it’s best to check your employment agreement or consult with your HR department.

MMS
MMS
3 years ago

Hello Team,

I took unpaid leave of 10 days and the company deducted my housing as well for these 10 days. Can company deduct housing for 10 days unpaid leave?

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  MMS

Yes, they can.

ALDRICH OMANDAP
ALDRICH OMANDAP
3 years ago
Reply to  Erez Greenberg

Hello Mr. Erez,

Supposed I am absent from work from November 1 to 7 and every week I have 2 weekend paid which is Friday and Saturday, Am I entitled for Paid absents for Friday and Saturday if I am absent for 1 week without valid reason?

Erez Greenberg
Erez Greenberg
3 years ago

Leave should always be with a valid reason and approved by the manager in advance. For medical leave without warning, the manager should be informed as soon as possible.

MOHAMMED ABDUL SAJEED
MOHAMMED ABDUL SAJEED
3 years ago

SIR AFTER 15 YEAR OF WORK IN A COMPANY HOW MUCH SETTLEMENT WE GET

Erez Greenberg
Erez Greenberg
3 years ago

You are entitled to an end-of-service wage of a half-month wage for each of the first five years, and a one-month wage for each of the following years of employment. 

asad
asad
3 years ago

what is the ratio of overtime on weekly off and public holiday

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  asad

All overtime hours in excess of 48 hours a week are paid at an overtime compensation rate; this rate is typically 150.00% of the employee’s average salary rate. Daily hours cannot exceed 11 hours.

Debra Fay
Debra Fay
3 years ago

Hello, How is vacation pay calculated. I earned 22 days vacation and my HR is calculating the rate of as Monthly Salary/30 days which implies that I am paid for and need to take vacation pay for weekends. Is that correct?

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  Debra Fay

Correct, here annual leave is usually discussed in terms of calendar days. To verify this, the worker should check their employment contract.

Alcen
Alcen
3 years ago

Hi. My contract will end on dec 13, 2022. I submitted my resignation last week Nov 2, 2022, I have only given them a 42 days notice.
Now it is stated in my contract “that if I did not give a 60 days notice, my contract will renew automatically and have to pay 8,500sr”
I called the hr representative and he said that i needed to pay 28,000sr. I was shock because it is not what is written in the contract.
When I asked why it is 28,000sr, he said it is because he already paid for the renewal of iqama. But when I checked my iqama online, it is still not renewed.
What should I do?

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  Alcen

Unfortunately, this is a legal question and we cannot advise. Please seek legal advice.

Ruben
Ruben
3 years ago

Is there any Penalty for the employer’s who’s not issuing payslip,.?

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  Ruben

Under Papaya all workers will be given payslips. We don’t have information on penalties for companies in general who do not provide pay slips.

Mohammad amir
Mohammad amir
3 years ago

Hi how to count annual leave and service benefits it will be count from basic salary or gross salary?

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  Mohammad amir

Annual leave is calculated on actual salary i.e. salary + allowances etc.

Catherine
Catherine
3 years ago

on termination of a limited term contract, does the company need to compensate for the remaining months of the contract? This is on top of the gratuity payment?

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  Catherine

There are a few justified reasons for ending a definite contract early. If justified, it is likely that the remaining months would be paid out or some other compensation agreed upon.

Junior Couture LLC
Junior Couture LLC
3 years ago
Reply to  Erez Greenberg

I really like this post.
Thank you for sharing a informative information with us.
Visit my links to find best designer clothing retailers in Saudi arabia.

Shin
Shin
3 years ago

Does an employer have to pay for annual ticket fare if the service exceeds up to 5 years and more ? Where can I find such laws here in Saudi?

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  Shin

Expats are entitled to paid flights depending on different scenarios – Article 40 of the Labour Law is where flights are decreed.

Abdul Muqsit Abbasi
Abdul Muqsit Abbasi
3 years ago

How does nitaqat apply to a company with less than 5 employees?

Also, how do you pay salaries when your company has less than 5 employees? What proof needs to be submitted? How to submit to GOSI?

Erez Greenberg
Erez Greenberg
3 years ago

Employers must register with the regional GOSI office within two weeks of initiating activities. I recommend the client reviews the payroll page of the Knowledgebase https://www.kb.papayaglobal.com/countries/saudi-arabia/saudi-arabia-payroll/

mod fahad
mod fahad
3 years ago

i took a 14 days unpaid leave to stay and perform umra with my parents. These 14 days includes 2 fridays and 2 saturdays. I usually have 2 days weekly off. Now they are saying like i will be having a 14 days salary cut..i thought i they will count 10 days as they remaining 4 days are usual off days. But they are saying like u only get 2 days weekly off if u are present on that week, u can’t take it as a off days in long leave. Is it true? anybody plz explain about this ..as I’m a beginner here in Saudi, I’m not much aware of the laws.

Last edited 3 years ago by mod fahad
Enny Shmurin
Enny Shmurin
2 years ago
Reply to  mod fahad

Hello, this question is lacking context. Unpaid leave can be granted under Article 116 of the Labour Code, with the approval of the Employer – I don’t see in the Labour Code that it determines how weekends are treated so it could be implied that the full period is unpaid. We recommend communicating with your manager/HR/Legal team to discuss this and ask to see more clearly how this is treated in law; if they do not provide this then you should seek guidance from a local legal advisor.

Sam Lee
Sam Lee
3 years ago

If I am a Saudi citizen and nevern worked in my life, can I still any monthly payment from Saudi Government?

Enny Shmurin
Enny Shmurin
2 years ago
Reply to  Sam Lee

Hello, what payments specifically is being referred to and under what context?

Dnny
Dnny
3 years ago

Hi, Is it legal to deduct 3 days of 1 day absent in Saudi Arabia?

Enny Shmurin
Enny Shmurin
3 years ago
Reply to  Dnny

Hi, would you be able to provide some context?

Ann
Ann
3 years ago

Hi! I’ve been working in the kingdom for almost seven years now. I am working as a nurse and with my recent employer, since 2018 up to now, I haven’t used up my sickleave. Is there a chance or law that the unused sickleave can be converted into cash? Just wondering. Thanks in advance.

Enny Shmurin
Enny Shmurin
3 years ago
Reply to  Ann

Hi, no, this is not possible.

Madhav Kumar nepal
Madhav Kumar nepal
3 years ago

According to Saudi labor law, how some one should calculated exit benefit after the contract period end?

Enny Shmurin
Enny Shmurin
3 years ago

The final payout should be calculated based on the last monthly salary of the worker; workers should be paid out any remaining wages/payments owed to them.

Chris
Chris
3 years ago

For first timers., If you stay in company or agency and haven’t been deployed yet, are they compensated you for the days that you stay in the accommodation because you haven’t deployed or not working yet.

Enny Shmurin
Enny Shmurin
3 years ago
Reply to  Chris

Hello, please define the question further.

FALEEL
FALEEL
3 years ago

12 HRS WORK WITHOUT DAY OFF AND NO MORE ANY OVERTIME KINDLY NEED YOUR ADVISE ON THIS REGARD.

Enny Shmurin
Enny Shmurin
3 years ago
Reply to  FALEEL

In Saudi Arabia, from the 8th hour the worker must be paid at a rate of 150% salary. Unfortunately, there is not enough context regarding your specific case but I would recommend seeking local legal advice.

Ali Muhaammad
Ali Muhaammad
3 years ago

Saudi labor laws requires that employers provide a written employment contract with their employees. The contract should include details such as job title, salary, working hours, leave entitlements, and other terms and conditions of employment.

Enny Shmurin
Enny Shmurin
3 years ago
Reply to  Ali Muhaammad

Hello,
Could you please clarify what the question is?

Wika
Wika
3 years ago

Hy, I want to ask about the employee loan from company. Because I am the new employee from Indonesia. Hiring in Saudi 4 days ago.
how much I will get the loan from Company, as an advance salary ?
did this regulation wrote in Saudi’s labor law ?
I have to find the room and pay it,.
thank you very much

Enny Shmurin
Enny Shmurin
2 years ago
Reply to  Wika

Hello,

It is not a requirement for companies to give loans or advance payments; this is something some employers might offer as an additional benefit. The worker should discuss the terms of their loan with their manager or HR.

Ju Ba
Ju Ba
2 years ago

Are there specific stipulations in Saudi Labor Law regarding housing/accommodation and transport allowance? Is it mandatory to offer these to Saudi nationals? If yes, is the quantum defined by law? If not, what’s the general practice (as a % of monthly basic pay)

Enny Shmurin
Enny Shmurin
2 years ago
Reply to  Ju Ba

It is common to divide the annual salary into 50% Basic Salary + 25% Housing Allowance + 25% Travel Allowance. However, it is possible to divide the % differently or to remove some of the breakdown of allowances.

Mathy
Mathy
2 years ago

my employer(manpower supplier) was not paid my First-51 days salary and allowance because work not assigned for me. Need advise how can i get my salary on those 51 days or any legal moves?

Enny Shmurin
Enny Shmurin
2 years ago
Reply to  Mathy

Unfortunately, we can’t advise on this specific legal case, we recommend reaching out to a local legal expert for specific advice on this scenario.

saji
saji
2 years ago

Is it end-of-service benefits calculated based on my basic salary or my actual salary, which I am receiving in my bank account? What does all include and not?

Enny Shmurin
Enny Shmurin
2 years ago
Reply to  saji

We advise carefully reviewing the employment contract to understand the wage structure. The end-of-service award in Saudi Arabia is usually calculated based on the worker’s last wage, and the award is granted for the portion of the year in proportion to the time worked.

Nebeel
Nebeel
2 years ago

I have worked for past 1 and a half years 7 days a week plus national and eid holiday , I have a compensatory leave of 166 days so far , should this be payed at the end of of the fixed contract according to the law ?

Enny Shmurin
Enny Shmurin
2 years ago
Reply to  Nebeel

End of Employment: Typically, at the time of termination, an employee is entitled to any unused leave. If a worker is required to work on a public holiday, they should receive overtime pay according to the terms outlined in their employment contract. Without the context its difficult to provide further information.

Corazon Delgado
Corazon Delgado
2 years ago

Is it true that during probationary period an employee will not be able to receive a salary?

Enny Shmurin
Enny Shmurin
2 years ago

Probation Period: In general, the probation period in terms of pay shouldn’t differ from a regular employment contract. However, without the specific context of the question, we cannot provide detailed advice.

JumR E Salvatierra
JumR E Salvatierra
2 years ago

Can employer make salary reduce de to financial problem ? Is this legal?

Enny Shmurin
Enny Shmurin
2 years ago

Generally salaries can only be reduced when it relates to reclaiming loans and debts from the worker. There are times when the government might decree a salary reduction is permitted e.g. during corona. Before any salary is cut the employer should consult with legal counsel to advise on the specific case and reason for reduction.

Jayaram
Jayaram
2 years ago

what is the salary split formula in KSA
Can we do as follows
Basic (50% of Gross Salary)
HRA (25% of Basic)
Transportation (10% of Basic)
Other Allowance ( remaining balance of gross salary )

Enny Shmurin
Enny Shmurin
2 years ago
Reply to  Jayaram

Yes, this is possible.

HR_P
HR_P
2 years ago
Reply to  Enny Shmurin

Hi Enny,

For all mandatory calculation like annual leave payment, is it base on base salary or total gross salary that including HRA/Transport/other? thanks

Enny Shmurin
Enny Shmurin
2 years ago
Reply to  HR_P

Annual leave is calculated on actual/total salary i.e. salary + allowances (including transportation allowance).

Raj
Raj
2 years ago

Hi
Can you please suggest if the Saudi Arabia Labour Law applies to the employees on Temporary Work Visa (>90 working days) ?
Thanks

Enny Shmurin
Enny Shmurin
2 years ago
Reply to  Raj

Hi, could you be more specific? What is your type of job? What specific labor law are you referring to? Generally, all workers should adhere to the labor law, but it is difficult to advise without knowing the full context.

Arif naved
Arif naved
2 years ago

Can anybody tell me, if an unpaid leave will be deducted from my gross salary or basic salary?

Enny Shmurin
Enny Shmurin
2 years ago
Reply to  Arif naved

Hello, please provide further context. If you are on unpaid leave, it might depend on your work set up and your salary structure according to the contract.

Syed Masood
Syed Masood
2 years ago

I recently joined a company with an automated payroll system on 28th October 2023. Despite working for 4 days in October, my salary was calculated for only 3 days according to the system. HR has explained that the automated payroll system considers the period from the 1st to the 30th of each month. I appreciate their clarification, but the discrepancy persists. My monthly salary is 9000 SAR, and I’m uncertain about the next steps. Any insights or guidance on addressing this matter would be greatly appreciated. Thank you in advance.

Enny Shmurin
Enny Shmurin
2 years ago
Reply to  Syed Masood

Hello, we cannot advise on specific payroll systems or the local employer payroll system, we recommend requesting from your employer to provide a clear guidance on how your salary is calculated in the local payroll system.

Vilma dela cruz
Vilma dela cruz
2 years ago

If i my contract is ongoing and my employer sells the company. Shall i still receive my EOSG based on the number of years i worked from my previous employer?

Enny Shmurin
Enny Shmurin
2 years ago

Under company transfers, the existing employment contract and service is usually deemed continuous. However, it is important to note that this must be reviewed case by case to align with each specific transfer type, contract type and worker set up.

Faisal
Faisal
2 years ago

After working for 14 years in a company in Saudi Arabia, I quit my job. My contract was renewed annually. But now they say I must pay them 8 months of salary because my contract is still valid for that long. Do employees who have worked for more than 10 years have to make such payment to company.

Enny Shmurin
Enny Shmurin
2 years ago
Reply to  Faisal

Depending on the nature of the termination, when using fixed term contracts there could be a requirement to pay out the remainder of the contract term if the termination was not mutually agreed. We recommend seeking local legal advice on this matter so that you can be guided on your specific contract type and legalities.

Suleman
Suleman
2 years ago

If employee have not taken his pay leave allowance past 5 years and he is going vacation after 5 years, how do you consider his allowance? as per law 21 days per year and every year he get salary increase for next 5 years. in this condition how do you calulate his pay leave allowance? example his started job with salary 1000 riyal and next 5 years it become 5000. help me to calculate his allowance

Enny Shmurin
Enny Shmurin
2 years ago
Reply to  Suleman

What is meant by paid leave allowance? Are you saying you have not taken any vacation days for 5 years or are you referring to some additional allowance/payment you are given as a company benefit/bonus?

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Payroll and Benefits Guide
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  • Employer/employee contributions
  • Minimum wage
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  • Visa requirements

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Public Holidays Calendar

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Date Day Holiday Holiday Notes
February 22, 2026 Sunday Founding Day
February 23, 2026 Monday Founding Day (Observed)
March 20, 2026 Friday Eid al-Fitr
March 21, 2026 Saturday Eid al-Fitr
March 22, 2026 Sunday Eid al-Fitr
May 26, 2026 Tuesday Arafat Day
May 27, 2026 Wednesday Eid al-Adha
May 28, 2026 Thursday Eid al-Adha
May 29, 2026 Friday Eid al-Adha
May 30, 2026 Saturday Eid al-Adha
September 23, 2026 Wednesday Saudi National Day