🇸🇦Employer of Record — KSA
Employer of Record
in Saudi Arabia
Deploy workforce across Saudi Arabia through our fully licensed, MHRSD-registered entity. No setup. Full compliance from day one.
Overview
Country Snapshot
Population
~35.3 million
Capital
Riyadh
Currency
SAR
Language
Arabic (English widely used)
Expatriates: ~44%
Saudi Nationals: ~56%
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
Direct Employment. Full In-Country Control.
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
Non-compliance with sponsorship and labor laws may result in fines, bans, or deportation
Licensed by
MHRSD — KSA
Why Use an EOR in Saudi Arabia?
- Companies without a legal entity in Saudi Arabia
- Businesses facing limitations with visa quota availability
- Organizations that prefer to outsource local hiring, payroll, and compliance management
- Companies seeking 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.
Not sure about visa pathways or timelines?
A 30-minute call can save you months. Speak to a UAE deployment specialist — free.
Saudization Support
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
01
Employing eligible Saudi candidates on our EOR platform
02
Full MHRSD/GOSI registration and pension compliance
03
Local talent sourcing and quota tracking support
Employment Contracts
Contract Structure
| Language | English & Arabic (dual language) |
| Currency | SAR |
| Contract Type | Fixed-term (2 years, renewable) |
| Must Define | Title, scope, salary, benefits, hours, probation, termination |
Job titles are 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.
Working Hours & Public Holidays
Work Schedule
Standard Hours
8 hrs/day · 48 hrs/week
Sunday to Thursday
Ramadan
2-hour daily reduction
For Muslim employees
Overtime
150% hourly wage
Mandatory overtime rate
Paid Public Holidays
Eid Al Fitr
Eid Al Adha
Saudi National Day
Saudi Foundation Day
Time Off
Leave Entitlements
| Leave Type | Entitlement |
|---|---|
| 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. |
Employment Lifecycle
Probation & Termination
Probation Period
Duration
3 months
Extension
Up to 3 more months (written consent)
Termination
Either party, no notice required
Post-Probation
Per contract terms
End of Service Gratuity
Eligibility
After completion of service
Calculation
Per Saudi labor law
Post-Probation Notice
As per contract
Need help with payroll structure or compliance?
Every deployment is different. Book a free consultation to get tailored advice on costs, timelines, and the best route for your team.
Payroll Compliance
Payroll Structure
| Currency | SAR only |
| WPS | Mandatory for all salaries |
| Payslips | Issued monthly |
| Frequency | Monthly salary cycle |
| Income Tax | None |
| Repatriation | Final air ticket to home country required (unless local transfer) |
Health Insurance
Insurance Requirements
Health insurance is mandatory under KSA law for all employees. MasdarEOR ensures compliant coverage is provided as part of every employment engagement.
All employees are enrolled in compliant health insurance plans meeting CCHI (Council of Cooperative Health Insurance) standards.
Why Masdar
Not a Reseller. Not an Aggregator.
Direct Infrastructure.
MHRSD-licensed entity with authority to sponsor expatriate and national workers
In-house visa, PRO, HR, legal, and payroll operations
End-to-end onboarding, documentation, and offboarding
Emiratization quota management via direct EOR employment
No hidden third-party costs