Country ExplorerSaudi Arabia

Easily manage employment in Saudi Arabia

Make employment in Saudi Arabia easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Saudi Arabia, all in one easy-to-use platform.

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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.

Saudi citizens have a minimum wage set at 4,000 SAR per month. There is no legally specified minimum wage for foreign workers; the market typically determines their wages or set by the terms of their individual employment contracts.

Competitive benefits package in Saudi Arabia

Health Insurance

Dental Insurance

Vision Insurance

Mental health support

Pension or 401(K)

Life and Disability Insurance

Facts & Stats

Saudi Arabia fits the image of an oil-rich desert nation complete with skyscrapers, exotic cars, flowing robes, and middle eastern cuisine.

Apart from holding the 2nd largest oil reserves in the world, Saudi Arabia has recorded rapid growth thanks to strong government welfare nets, economic liberalization measures, and a huge expat population of over 13 million contributing to the nation’s intellectual capital.

Capital

Riyadh

Official language

Arabic

Currency

Saudi riyal

Population

34218169

Cost of living index

2021

GDP real growth rate

0.30%

Payroll frequency

Monthly

VAT rate

5%

Ease of doing business

Easy

Grow your team in Saudi Arabia with Remote

Want to employ workers in Saudi Arabia? Companies hiring in Saudi Arabia are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.

Remote can employ team members in Saudi Arabia and keep you compliant. Remote can hire, onboard, and pay your Saudi Arabia team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Saudi Arabia. Sign up now to get started or talk to an expert for more details.

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.

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Taxes in Saudi Arabia

Employment taxes and statutory fees affect both your payroll and your employees' paychecks in Saudi Arabia. Note that your employees may be liable for additional local taxes.

Employer

0%

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

0%

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

Employee

0%

Social Insurance Tax for Non-Saudi Expats

Types of leave in Saudi Arabia

Paid time off

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.

Public holidays

There are 9 public holidays that employees can take off work.

Sick leave

Employees are entitled to 120 days of sick leave with full pay for the first 30 days, a third of their normal wages for the next 60 days, and no benefits for the remaining 30 days of illness.

Maternity leave

Female employees are entitled to 10 weeks of paid maternity leave, starting four weeks before delivery. Employees who’ve served for at least a year are entitled to maternity benefits equivalent to 50% of their normal wages while workers who have served for up to three years are entitled to their full pay.

Paternity/parental leave

Fathers get 3 days of paternity leave following childbirth.

Other leave

- Bereavement leave: employees are entitled to two days of leave in the event of the death of an immediate family member. - Marriage leave: couples who’re tying the knot are entitled to three days of paid leave. - Pilgrimage leave: Workers who have been employed for two consecutive years can request up to 15 days off for their first Hajj pilgrimage.

Employment Termination in Saudi Arabia

Termination process

Unless the contract includes specific compensation for the termination by either party for an invalid reason, the party affected by termination shall be entitled to compensation as follows: 1. For indefinite-term contracts: an amount equivalent to fifteen-day wage for each year of the worker’s employment. 2. For fixed-term contracts: the wage for the remainder of the contract term. The compensation referred to in paragraphs (1) and (2) above shall not be less than the worker’s wage for two months. Additionally, upon the end of the employment relation, the employer shall pay the worker an end-of-service award equivalent to the amount of half-month wage for each of the first five years and a one-month wage for each of the years worked thereafter.

Notice period

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

Severance pay

Unless the contract includes specific compensation for the termination by either party for an invalid reason, the party affected by termination shall be entitled to compensation as follows: 1. For indefinite-term contracts: an amount equivalent to fifteen-day wage for each year of the worker’s employment. 2. For fixed-term contracts: the wage for the remainder of the contract term.

The compensation referred to in paragraphs (1) and (2) above shall not be less than the worker’s wage for two months. Additionally, upon the end of the employment relation, the employer shall pay the worker an end-of-service award equivalent to the amount of half-month wage for each of the first five years and a one-month wage for each of the years worked thereafter.

Probation periods

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

Remote Benefits Plans

At Remote, we provide tailored benefits to ensure that all Remote employees receive comprehensive coverage from top providers. Our plans offer competitive rates designed for larger groups - even if the team is still growing!

Upon onboarding, Remote will enroll team members in their benefits and provide detailed information about their coverage. Remote manages all administrative tasks, allowing you to focus on scaling your global team.

To ensure benefit equality, any benefits offered will apply to all team members in the country, providing consistent coverage and support across the team.

Mental Health

Offering mental health benefits is not mandatory in this country, but providing the benefit can significantly enhance the emotional well-being and overall productivity of employees. Remote offers a comprehensive employee mental wellbeing platform in partnership with one of the top-rated employee mental wellbeing providers. This platform is available on desktop and mobile apps and includes 1-to-1 therapy with a curated pool of top-quality therapists in over 35 languages. The advanced matching service finds each employee the right therapist within 48 hours, boasting a 98% success rate. Employees receive a personal wellbeing profile with tailored recommendations and information to track progress. The platform also offers a curated self-guided content library with audio mindfulness and meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers. Additionally, there are 24/7 mental health helplines for immediate support when an employee is struggling. Mental health program benefits may be offered to the employees from among 5 different plans. Offering mental health benefits is optional, but it can greatly enhance employee well-being and productivity. It is essential to be aware that in certain countries, mental health benefits may be categorized as ‘Benefits in Kind’ (BIK). This categorization means that the monthly premiums paid for the benefit might be counted as part of the employee’s taxable income according to the local tax laws. When mental health benefits are offered, they must be provided equally to all employees in the respective country.

Basic

Platform Access

Access to the wellbeing platform and app, which includes:

  • Personalized wellbeing assessment

  • Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers

  • Access to manager-specific learnings and resources

  • Precision matching for 1:1 coaching and therapy in 35+ languages

  • Professional coaching

  • Text-based chat with dedicated practitioner

  • 24/7 global support in all languages

  • Add up to 3 friends and family to the platform

Therapy and Coaching Sessions

  • Not included in the Basic plan

  • Team members can pay for therapy sessions themselves, if needed.

Standard

Platform Access

Access to the wellbeing platform and app, which includes:

  • Personalized wellbeing assessment

  • Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers

  • Access to manager-specific learnings and resources

  • Precision matching for 1:1 coaching and therapy in 35+ languages

  • Professional coaching

  • Text-based chat with dedicated practitioner

  • 24/7 global support in all languages

  • Add up to 3 friends and family to the platform

Therapy and Coaching Sessions

  • Includes one pre-paid Therapy/Coaching session per policy year

  • Team members can pay for extra therapy sessions themselves, if needed.

Plus

Platform Access

Access to the wellbeing platform and app, which includes:

  • Personalized wellbeing assessment

  • Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers

  • Access to manager-specific learnings and resources

  • Precision matching for 1:1 coaching and therapy in 35+ languages

  • Professional coaching

  • Text-based chat with dedicated practitioner

  • 24/7 global support in all languages

  • Add up to 3 friends and family to the platform

Therapy and Coaching Sessions

  • Includes three pre-paid Therapy/Coaching sessions per policy year

  • Team members can pay for extra therapy sessions themselves, if needed.

Premium

Platform Access

Access to the wellbeing platform and app, which includes:

  • Personalized wellbeing assessment

  • Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers

  • Access to manager-specific learnings and resources

  • Precision matching for 1:1 coaching and therapy in 35+ languages

  • Professional coaching

  • Text-based chat with dedicated practitioner

  • 24/7 global support in all languages

  • Add up to 3 friends and family to the platform

Therapy and Coaching Sessions

  • Includes six pre-paid Therapy/Coaching sessions per policy year

  • Team members can pay for extra therapy sessions themselves, if needed.

Platinum

Platform Access

Access to the wellbeing platform and app, which includes:

  • Personalized wellbeing assessment

  • Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers

  • Access to manager-specific learnings and resources

  • Precision matching for 1:1 coaching and therapy in 35+ languages

  • Professional coaching

  • Text-based chat with dedicated practitioner

  • 24/7 global support in all languages

  • Add up to 3 friends and family to the platform

Therapy and Coaching Sessions

  • Includes twelve pre-paid Therapy/Coaching sessions per policy year

  • Team members can pay for extra therapy sessions themselves, if needed.

Business Travel Insurance

Remote’s Global Business Travel Insurance program is crafted to address the unique needs of your team, whether they are embarking on short business trips or traveling extensively throughout the year. With five comprehensive plan options—Basic, Standard, Premium, Premium Plus, and Standard Plus—this program ensures that your team members have the right level of coverage to protect their health, safety, and well-being while traveling for business.

Available in over 90 countries, the program provides extensive global coverage at competitive rates, offering peace of mind no matter where their work takes them. This optional benefit is designed to be flexible, allowing you to offer tailored coverage that meets the diverse needs of your workforce. By providing business travel insurance, you are taking proactive steps to safeguard your team from unforeseen events such as medical emergencies, trip disruptions, or loss of business equipment while they are on the road.

Basic

Coverages (values in USD):

  • Emergency & Accidental Medical: $1,000,000

  • Repatriation for Medical Treatment: 100% per trip

  • Emergency Medical Evacuation: $100,000

  • Repatriation of Mortal Remains: $25,000 per trip

  • Pre-existing Medical Conditions: For stable pre-existing medical conditions up to $50,000

  • Business Equipment: Up to $1,500

  • Computer Equipment (single item limit): $500

  • Business Money: $100 per day up to $500

  • Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.

Standard

Coverages (values in USD):

  • Excludes Medical & Evacuation

  • Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips

  • Personal Liability: $100,000 per trip

  • Accidental Death & Permanent Total Disability: $100,000 per trip

  • Loss of Passport: $250 per trip

  • Legal Expenses: $10,000 per trip

  • Hijacking: $1,000 per trip

  • Business Equipment: Up to $1,500

  • Computer Equipment (single item limit): $500

  • Business Money: $100 per day up to $500

  • Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.

Standard Plus

Coverages (values in USD):

  • Emergency & Accidental Medical: $1,000,000

  • Repatriation for Medical Treatment: 100% per trip

  • Emergency Medical Evacuation: $100,000

  • Repatriation of Mortal Remains: $25,000 per trip

  • Pre-existing Medical Conditions: For stable pre-existing medical conditions up to $50,000

  • Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips

  • Personal Liability: $100,000 per trip

  • Accidental Death & Permanent Total Disability: $100,000 per trip

  • Loss of Passport: $250 per trip

  • Legal Expenses: $10,000 per trip

  • Hijacking: $1,000 per trip

  • Business Equipment: Up to $1,500

  • Computer Equipment (single item limit): $500

  • Business Money: $100 per day up to $500

  • Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.

Premium Plus

Coverages (values in USD):

  • Emergency & Accidental Medical: $1,000,000

  • Repatriation for Medical Treatment: 100% per trip

  • Emergency Medical Evacuation: $100,000

  • Repatriation of Mortal Remains: $25,000 per trip

  • Pre-existing Medical Conditions: For stable pre-existing medical conditions up to $50,000

  • Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips

  • Personal Liability: $100,000 per trip

  • Accidental Death & Permanent Total Disability: $100,000 per trip

  • Loss of Passport: $250 per trip

  • Legal Expenses: $10,000 per trip

  • Hijacking: $1,000 per trip

  • Cancellation & Curtailment: $2,000 per trip; subject to $100 deductible per Trip *Benefit not available to residents of the USA

  • Business Equipment: Up to $1,500

  • Computer Equipment (single item limit): $500

  • Business Money: $100 per day up to $500

  • Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.

Premium

Coverages (values in USD):

  • Excludes Medical & Evacuation

  • Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips

  • Personal Liability: $100,000 per trip

  • Accidental Death & Permanent Total Disability: $100,000 per trip

  • Loss of Passport: $250 per trip

  • Legal Expenses: $10,000 per trip

  • Hijacking: $1,000 per trip

  • Cancellation & Curtailment: $2,000 per trip; subject to $100 deductible per Trip *Benefit not available to residents of the USA

  • Business Equipment: Up to $1,500

  • Computer Equipment (single item limit): $500

  • Business Money: $100 per day up to $500

  • Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.

Health Benefits

Offering health insurance in this country is mandatory for

both employees and their dependents

in accordance with the regulations of the Saudi Cooperative Councile of Health Insurance (CCHI). This health benefit enables access to a wide range of providers and specialists. Learn more about Remote’s health insurance offering below. If you would like more insight into fair equity and benefits best practices, you can download our Global Benefits Guide

here

!

Local

In-Patient Benefits

  • Maximum Benefit Limit: 500,000 SAR

  • Hospitalisation: Covered

  • Accommodation within network: Up to 1,500 SAR/night

  • Pregnancy and Childbirth: 25,000 SAR

  • Complication at Childbirth: Covered

  • Dialysis: Up to 180,000 SAR

  • Psychiatric Treatment: Up to 50,000 SAR

  • Rehabilitation: Covered

  • Disability Cost: Up to 100,000 SAR

  • Kidney Transplant: Up to 250,000 SAR

Out-Patient Benefits

  • Out-Patient Treatments: Co-pay 20% (up to 100 SAR)

  • Drugs and Medication: Co-pay 20% (up to 30 SAR)

  • Pre-existing and Chronic Conditions: Covered

  • Vaccination: Covered

  • Physiotherapy (when medically necessary): Covered

  • Physician Fees within Network:

    • Practitioner: 100-150 SAR

    • Specialist: 200-300 SAR

    • Cardiologist, Neuro, Vascular Surgery: 400 SAR

  • Family Planning: 1,500 SAR

  • Sexually Transmitted Disease Treatment: Covered

  • Preventive Screening: Covered based on National Guidelines

Dental Benefits

  • Essential and Preventive Treatment: 1,800 SAR

  • Root Canal and Emergencies: 1,200 SAR

Vision Benefits

  • Vision Coverage: Up to 1,000 SAR

  • Frame Limit: 400 SAR

Other Benefits

  • Obesity Treatment: Up to 15,000 SAR with 20% co-pay (up to 1,000 SAR)

  • Alzheimer’s Treatment: Up to 15,000 SAR

  • Autism Treatment: Up to 50,000 SAR

  • Transportation of Deceased Beneficiary to Home Country: Up to 10,000 SAR

  • Local Ambulance: Covered under approved service providers

  • Emergency Treatment Outside Saudi Arabia: Covered

Health Benefits

Offering health insurance in this country is mandatory for both employees and their dependents in accordance with the regulations of the Saudi Cooperative Councile of Health Insurance (CCHI). This health benefit enables access to a wide range of providers and specialists. Learn more about Remote’s health insurance offering below. If you would like more insight into fair equity and benefits best practices, you can download our Global Benefits Guide

here

!

Local

In-Patient Benefits

  • Maximum Benefit Limit: 1,000,000 SAR

  • Hospitalisation: Covered

  • Accommodation within network: Up to 1,500 SAR/night

  • Pregnancy and Childbirth: 25,000 SAR

  • Complication at Childbirth: Covered

  • Dialysis: Up to 180,000 SAR

  • Psychiatric Treatment: Up to 50,000 SAR

  • Rehabilitation: Covered

  • Disability Cost: Up to 100,000 SAR

  • Kidney Transplant: Up to 250,000 SAR

Out-Patient Benefits

  • Out-Patient Treatments: Co-pay 20% (up to 100 SAR)

  • Drugs and Medication: Co-pay 20% (up to 30 SAR)

  • Pre-existing and Chronic Conditions: Covered

  • Vaccination: Covered

  • Physiotherapy (when medically necessary): Covered

  • Physician Fees within Network:

  • Family Planning: 1,500 SAR

  • Sexually Transmitted Disease Treatment: Covered

  • Preventive Screening: Covered based on National Guidelines

Dental Benefits

  • Essential and Preventive Treatment: 1,800 SAR

  • Root Canal and Emergencies: 1,200 SAR

Vision Benefits

  • Vision Coverage: Up to 1,000 SAR

  • Frame Limit: 400 SAR

Other Benefits

  • Obesity Treatment: Up to 15,000 SAR with 20% co-pay (up to 1,000 SAR)

  • Alzheimer’s Treatment: Up to 15,000 SAR

  • Autism Treatment: Up to 50,000 SAR

  • Transportation of Deceased Beneficiary to Home Country: Up to 10,000 SAR

  • Local Ambulance: Covered under approved service providers

  • Emergency Treatment Outside Saudi Arabia: Covered

  • Practitioner: 100-150 SAR

  • Specialist: 200-300 SAR

  • Cardiologist, Neuro, Vascular Surgery: 400 SAR

Contractor management in Saudi Arabia

Hiring contractors in Saudi Arabia can be a strategic and cost-effective way for businesses to complete projects without the obligations of hiring full-time employees. Whether you are engaging independent contractors for specialized services or bringing in subcontractors for various tasks, understanding Saudi Arabia’s laws and regulations is essential.

Staying compliant with Remote’s contractor management

Remote helps businesses stay compliant when hiring contractors globally with these key features:

  • Global compliance support: Ensures adherence to labor laws in 200+ countries with localized contracts and proper documentation.

  • Misclassification protection: Includes built-in compliance checks and seamless contractor-to-employee conversion.

  • Centralized documentation: Maintains essential records for audits and automates tax filings.

  • Legal expertise: Provides guidance on complex local labor laws, simplifying international hiring.

Remote’s streamlined approach minimizes compliance risks and simplifies contractor management for businesses.

Seamless contractor payments with Remote

Remote simplifies contractor payments with:

  • Automated processing: One-click approvals, bulk payments, recurring invoices, and real-time tracking.

  • Global coverage: Payments in 200+ countries, multiple payment methods, and currency flexibility.

  • Cost and compliance: Fair price guarantee (pay only for active contractors), built-in compliance with regional regulations, and localized contracts.

Learn more about how Remote simplifies contractor management in Saudi Arabia — get started for free today.

Employer of record in Saudi Arabia

Our employer of record (EOR) service enables you to hire, manage, and pay top talent in Saudi Arabia with speed and simplicity.

What is an EOR — and how does it work?

Remote’s EOR allows your company to legally hire employees in Saudi Arabia without having to set up a local legal entity. On paper, Remote is the official employer, and we handle compliance, payroll, benefits (including equity), and other HR processes — but you maintain full control over the hire’s day-to-day management and work responsibilities.

Who should consider using an EOR in Saudi Arabia?

An EOR may be ideal if your company:

  • Needs to hire employees in Saudi Arabia but doesn’t want to establish a legal entity

  • Is testing local markets before committing to a full business expansion

  • Wants to ensure full compliance with local employment laws and tax requirements

  • Needs a fast, cost-effective way to onboard employees in Saudi Arabia

  • Needs a temporary hiring solution before establishing a legal entity

Why use Remote’s EOR in Saudi Arabia?

If your company wants to hire talent in Saudi Arabia but doesn't have a legal entity there, our EOR provides a fully compliant and efficient solution. Saudi Arabia has strict employment and payroll tax laws, and our EOR service ensures you meet these legal obligations while enabling you to grow quickly.

Key benefits of hiring through our EOR in Saudi Arabia include:

  • Faster market entry. You can hire talent quickly, without having to wait months to establish a local entity.

  • Full compliance with local employment laws. Avoid the legal risks associated with non-compliance and misclassification.

  • Simplified payroll management. We automate payroll tax calculations and ensure you are fully compliant with all withholding obligations, even when laws change.

  • Lower costs. Setting up a legal entity in Saudi Arabia can be costly and time-consuming. An EOR eliminates the need for entity registration, reducing overhead expenses.

  • Fewer resources required. With HR, payroll, and compliance managed by the EOR, your company can concentrate on scaling operations and assigning your resources elsewhere.

It’s also crucial to note that, at Remote, we own our own legal entity in Saudi Arabia. As a result, we don’t need to rely on third parties, which can incur delays and extra costs, and result in a negative employee experience. All our EOR services — including the dedicated support of our local specialists — are provided in-house.

To learn more — and to see our EOR platform in action — book a demo with one of our friendly experts today.

Transparent Pricing in Saudi Arabia

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Employer of Record

$699

per employee/month

  • Hire without opening a local entity in 90+ countries

  • Onboarding with a dedicated specialist

  • Local payroll paid on time, every time

  • Compliance protections built-in

  • Competitive, flexible and localized benefits

  • Dedicated in-house experts for local support

  • Includes HR Essentials as standard

Payroll

$29

per employee/month

  • Powerful, transparent international payroll

  • Simple self-service platform

  • Personalized support from dedicated specialists

  • Adhere to local payroll regulations in every country

  • Integrated benefits management

  • Includes HR Core as standard

Contractor Management

$29

per contractor/month

  • Only pay for contractors you actively work with

  • Work with international contractors

  • Create, edit, and sign tailored, localized contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

  • Includes HR Core as standard