Payroll and Benefits Guide Saudi Arabia
Last updated: Mar 03, 2026
Contribution
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Employer Payroll Contributions
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9.00%
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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.
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1.00%
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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.
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2.00%
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Occupational Hazard
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2% to 12.00%
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Total Employment Cost
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Employee Payroll Contributions
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9.00%
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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.
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1.00%
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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.
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10%
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Total Employee Cost
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Employee Income Tax
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0.00%
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There is no individual income tax regime in Saudi Arabia, earnings from employment are not subject to income tax.
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Employer taxes
Employee taxes
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)
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.
PAID MATERNITY LEAVE (DAYS)
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
Probation period has been updated.
Payroll contributions and personal income tax rates have been updated.
Questions & Answers
See how Papaya can help you automate your global payroll or EoR whilst staying 100% compliant with local labor laws
Payroll and Benefits Guide
in Saudi Arabia
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| 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 |
If I am hiring in Saudi Arabia, are there laws about hiring local Saudi residents?
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.
I’m 14yrs.now in my company how to compute my severance?
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)
however company send me back in my country without paiying benefit service , what i do to get my benefit ?
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.
Any retirement benefits?
Hi Anna, thank you for your question. Are you an ex-pat or a Saudi national?
Hi, is there any incentive of 10K riyals if you completed 10 years in the company?
Hi Aaron, this would depend on the company and the contract agreement.
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?
Hi Muhammad, this depends on the agreement between you and your employer.
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!
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.
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?
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.
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
Hi Tayyab, Employers are supposed to provide their employees with salary details on their payslips.
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
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.
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?
Hi Aziz, thank you for your question. This is correct, this does not count towards the time you were employed.
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
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?
Is it possible to transfer salaries to Non-Sponsored expat workers?
What’s the best solution?
What are the Pros & Corns?
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.
Does weekend consider in annual leave
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.
Hi Emily, do you know where you can find this rule regarding weekends in the labor law?
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.
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
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.
Is there a legal requirement to provide flights to non-Saudi nationals as part of their package?
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.
HOW MANY DEDUCTION IF I WILL SUBMITTE MY RESIGN BEFORE MY IQAMA EXIPRE.
Hi Latif, thank you for your question. The deduction remains the same, regardless of when your Iqama expires.
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
As this is quite specific to this worker, we would advise the worker to contact a local lawyer and review the contract/agreement terms.
Hi. If you are absent for 1 day, is it right to deduct also from your housing allowance this one day?
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.
what if absent without valid reason, does other allowances like housing,transpo and food allowance will deduct also?
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.
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?
Yes, they can.
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?
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.
SIR AFTER 15 YEAR OF WORK IN A COMPANY HOW MUCH SETTLEMENT WE GET
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.
what is the ratio of overtime on weekly off and public holiday
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.
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?
Correct, here annual leave is usually discussed in terms of calendar days. To verify this, the worker should check their employment contract.
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?
Unfortunately, this is a legal question and we cannot advise. Please seek legal advice.
Is there any Penalty for the employer’s who’s not issuing payslip,.?
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.
Hi how to count annual leave and service benefits it will be count from basic salary or gross salary?
Annual leave is calculated on actual salary i.e. salary + allowances etc.
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?
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.
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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?
Expats are entitled to paid flights depending on different scenarios – Article 40 of the Labour Law is where flights are decreed.
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?
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/
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.
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.
If I am a Saudi citizen and nevern worked in my life, can I still any monthly payment from Saudi Government?
Hello, what payments specifically is being referred to and under what context?
Hi, Is it legal to deduct 3 days of 1 day absent in Saudi Arabia?
Hi, would you be able to provide some context?
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.
Hi, no, this is not possible.
According to Saudi labor law, how some one should calculated exit benefit after the contract period end?
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.
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.
Hello, please define the question further.
12 HRS WORK WITHOUT DAY OFF AND NO MORE ANY OVERTIME KINDLY NEED YOUR ADVISE ON THIS REGARD.
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.
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.
Hello,
Could you please clarify what the question is?
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
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.
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)
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.
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?
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.
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?
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.
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 ?
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.
Is it true that during probationary period an employee will not be able to receive a salary?
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.
Can employer make salary reduce de to financial problem ? Is this legal?
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.
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 )
Yes, this is possible.
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
Annual leave is calculated on actual/total salary i.e. salary + allowances (including transportation allowance).
Hi
Can you please suggest if the Saudi Arabia Labour Law applies to the employees on Temporary Work Visa (>90 working days) ?
Thanks
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.
Can anybody tell me, if an unpaid leave will be deducted from my gross salary or basic salary?
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.
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.
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.
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?
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.
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.
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.
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
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?