Employing Workers in Saudi Arabia (KSA)
Employing Workers in Saudi Arabia (KSA)
Country Snapshot
- Population: ~35.3 million (2024 est.)
- Expatriates: ~44%
- Saudi Nationals: ~56%
- Capital: Riyadh
- Other major cities: Jeddah, Mecca, Medina, Dammam, etc.
- Currency: Saudi Riyal (SAR)
- Official Language: Arabic (English widely used in business)
Saudi Arabia is the largest GCC country by area and plays a central role in the region. The Kingdom has both urban hubs (Riyadh, Jeddah) and sacred cities (Mecca, Medina), with licensing and immigration overseen by multiple bodies depending on region/type of business.
Hiring & Compliance: Overview
MasdarEOR is a fully licensed, in-country Employer of Record (EOR) provider in Saudi Arabia. We manage all employment obligations on behalf of clients—ensuring full compliance with local labor and immigration laws.
- A valid Saudi trade license is required to directly sponsor employees.
- Expatriates must be sponsored under a registered Saudi entity—either a client’s own license or an EOR platform such as Masdar.
- Non-compliance with sponsorship and labor laws may result in fines, bans, or deportation.
Why Use an EOR in Saudi Arabia?
MasdarEOR offers a strategic alternative for companies that:
- Do not have a legal entity in Saudi Arabia.
- Face limitations with visa quota availability.
- Prefer to outsource local hiring, payroll, and compliance management.
- Seek to meet Saudization obligations without direct headcount.
MasdarEOR can legally employ both expatriates and Saudi nationals on our license, giving clients immediate access to workforce deployment without establishing a local entity.
Saudization Quotas & Support
The Kingdom of Saudi Arabia mandates private sector companies to hire a minimum number of Saudi nationals under the national Saudization (Nitaqat) policy.
- Quota requirements vary by license type, industry, and employee headcount.
- Penalties apply to non-compliance, especially for entities with 50+ staff.
MasdarEOR can manage Saudization on the client’s behalf by:
- Employing eligible Saudi candidates on our EOR platform.
- Ensuring full MHRSD/GOSI registration and pension compliance.
- Providing local talent sourcing and quota tracking support.
Employment Contracts
- Dual language: English and Arabic
- Currency: Salary must be stated and paid in SAR
- Contract Type: Fixed-term only (2 years, renewable)
- Job Titles: Subject to availability in Saudi systems and tied to academic qualifications and Saudization policies. Not all titles are available and changes can occur without prior notice.
- Must define: title, scope, salary, benefits, working hours, probation, and termination
Working Hours & Public Holidays
- Standard: 8 hours/day, 48 hours/week
- Workweek: Sunday to Thursday
- Ramadan: 2-hour daily reduction for Muslim employees
- Overtime: Overtime must be paid at 150% of the hourly wage
Paid public holidays include:
- Eid Al Fitr
- Eid Al Adha
- Saudi National Day
- Saudi Foundation Day
Leave Entitlements
Annual Leave
21 calendar days (after 1 year), pro-rated in first year
Sick Leave
First 30 days: full pay
Next 60 days: 75% pay
Next 30 days: unpaid
Maternity Leave
12 weeks (6 weeks mandatory after delivery, 6 weeks flexible before/after); full pay if employed for 1 year, half pay if employed for less than one year.
Parental Leave
3 days with full salary
Hajj Leave
10–15 days paid Hajj leave, for employees with ≥2 years service, once per employment.
Probation & Termination
3 months, extendable to another 3 months with written consent
Either party may terminate without notice, unless the contract specifies otherwise
Post-Probation Notice
30 to 60 days (as per contract)
End of Service (EOS) Gratuity
Resignation:
- <2 years: No gratuity
- 2–5 years: 1/3 gratuity
- 5–10 years: 2/3 gratuity
- >10 years: Full gratuity
Termination:
- <1 year: No gratuity
- 1–5 years: 0.5 month salary/year
- >5 years: Full gratuity
Payroll Compliance
- Salary Payment: SAR only
- WPS (Wage Protection System): Mandatory for all salaries
- Payslips: Issued monthly
- Frequency: Monthly salary cycle
- No income tax in the KSA
- Repatriation: Final air ticket to home country must be provided at the end of the contract unless employee transfers locally
Health Insurance
- Mandatory under the KSA law
Why Choose MasdarEOR?
We are not a reseller or aggregator. MasdarEOR delivers direct, on-ground service with full compliance.
- MoHRE-licensed entity with authority to sponsor expatriate and national workers
- In-house visa, PRO, HR, legal and payroll infrastructure across Saudi jurisdictions
- End-to-end onboarding, documentation, payroll, and offboarding
- Saudization quota solutions via direct EOR employment of nationals
- No hidden third-party costs — all services managed by Masdar directly
