Saudi Arabian mosque
Remote’s guide to employing in

Saudi Arabia
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Remote makes employment in Saudi Arabia easy. With our localized contracts, easy invoice management, and best-in-class compliance, you can grow your global team with confidence. Note that we can currently employ contractors in Saudi Arabia but our employer of record services are not yet live.

  • Capital City


  • Currency

    Saudi riyal (﷼, SAR)

  • Languages


  • Population size


Services available in this country:
Contractor Management

Facts & Stats

Saudi Arabia Map Illustration
  • Capital City


  • Currency

    Saudi riyal (﷼, SAR)

  • Languages


  • Population size


  • Ease of doing business


  • Cost of living index

    49.95 (2021)

  • Payroll frequency


  • VAT - standard rate


  • GDP - real growth rate

    0.3% (2019)

Grow your team in Saudi Arabia with Remote

You can pay contractors now in Saudi Arabia with Remote in some currencies (talk to an expert now for full details).

Note that we are busy building our own entity in Saudi Arabia to provide you with the best possible employment solutions for your employees, but our employer of record service is not yet live in this country.

To employ in Saudi Arabia, companies must own a local legal entity in the country or work with a global employment solution. Developing the processes required to manage payroll, benefits, taxes, and onboarding in countries like Saudi Arabia can get complicated fast, especially without localized expertise.

If you're looking to start hiring in a country like this, partnering with a global employment solution like Remote makes it easy for your company to employ workers quickly, cost-effectively, and in full compliance with all local legislation.

In the countries where we do offer our EOR services, Remote takes on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks of misclassification

Saudi Arabia, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Saudi Arabia may lead to fines and penalties for the offending company.

Employing in Saudi Arabia

Provisions for employee protections and workers’ rights are spelled out in the Saudi Arabian Labor Law of 2006 and are enforced jointly by the Ministry of Labor and the Ministry of Human Resources and Social Development.

Employees in Saudi Arabia enjoy protection against discrimination based on age, religion, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Saudi Arabia.

Minimum wage

The monthly minimum wage in Saudi Arabia is fixed at 4,000 SAR or roughly $1,066.

Payroll cycle

Wages can either be paid on a weekly or monthly basis.

Competitive benefits package in Saudi Arabia

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity”, which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

We are still busy building our own entity in Saudi Arabia, but our benefits packages for all countries are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Taxes in Saudi Arabia

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Saudi Arabia.

  • 2%

    Social Insurance Tax for Non-Saudi Expats(effective on wages ranging from 1,500 SAR to 45,000 SAR)

  • 12%

    Social Insurance Tax for Saudi Nationals (effective on wages ranging from 1,500 SAR to 45,000 SAR)

Types of leave

Employees with up to five years of service are entitled to 21 days of annual vacation while workers with more than five years of employment can take up to 30 days off annually.

Employment termination

Termination process

Saudi Arabian labor law provides a lot of leeway for employers to let workers go, but compensation must be provided if a termination is unjustified.

Notice period

Notice periods range from 30 days for fixed-term contracts, to 60 days for indefinite-term contracts.

Severance pay

Employees who’re being let go without just cause are entitled to 15 days’ pay for each of the first five years of employment plus a month’s pay for each subsequent year.

Probation periods

Probation periods are typically limited to 90 days but can last for up to 180 days with the consent of both parties.