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Hire in Saudi Arabia,
compliantly,
without the complexity.

We become the legal employer for your international workforce in Saudi Arabia. You keep full control of your team — we handle payroll, taxes, benefits, and local compliance.

Official NameKingdom of Saudi Arabia (Al-Mamlakah al-Arabīyah as-Su‘ūdīyah)
CapitalRiyadh (NEOM Giga-Project, King Abdullah Financial District - KAFD & Red Sea Global)
CurrencySaudi Riyal (SAR / ر.س, pegged to USD at 3.75)
Official LanguageArabic (English is widely used in tech, energy, and corporate business)
Population~36 million (Largest Economy in the Middle East & G20 Member, ~$1.1T USD GDP)
Time ZoneArabia Standard Time (AST, UTC+3, no DST)
General Organization for Social Insurance (GOSI - Saudis)11.75% Employer / 9.75% Employee (21.5% Total)
Occupational Hazards (GOSI - Expatriates)2.0% Employer contribution (Workplace injury insurance)
Personal Income Tax0.0% (Zero personal income tax on employment earnings)
Mandatory End of Service Award (EOSA)0.5 months' pay/yr (first 5 yrs) + 1 full month's pay/yr thereafter
Nitaqat Saudization Workforce QuotasMandatory tier-based quotas for employing Saudi citizens (Qiwa portal)
Regional Headquarters (RHQ) ProgramRequirement for multinationals to establish MENA HQs in Riyadh
Annual Vacation (Saudi Labor Law)21 calendar days (tenure < 5 yrs) scaling to 30 calendar days (5+ yrs)
Standard Workweek40 to 48 hours/week (8 hours/day over 5 or 6 days under Labor Law)

The Kingdom of Saudi Arabia is the largest economy in the Middle East, a G20 member (~$1.1+ trillion USD GDP), and the financial and industrial anchor of the Arab world. Under the transformative **Saudi Vision 2030** led by the Public Investment Fund (PIF managing over $900+ billion), Saudi Arabia is undergoing the largest economic diversification and mega-infrastructure buildout in modern history, highlighted by NEOM (the $500B futuristic cognitive region), the King Abdullah Financial District (KAFD) in Riyadh, the **Regional Headquarters (RHQ) Program** (incentivizing Fortune 500 multinationals to base their MENA headquarters in Riyadh), renewable clean hydrogen, entertainment/gaming (Savvy Games Group), and global energy leadership through Saudi Aramco. Hiring employees in Saudi Arabia requires compliance with the Saudi Labor Law (*Royal Decree No. M/51 as amended*), the **Qiwa platform** for electronic employment contracts, the **Mudad Wage Protection System (WPS)** for salary transfers, mandatory contributions to the General Organization for Social Insurance (**GOSI** at 11.75% employer for Saudi citizens, and 2.0% for expatriates), the mandatory **End of Service Award (*EOSA*)**, and compliance with **Nitaqat Saudization quotas**. Setting up a local LLC requires a Ministry of Investment (MISA) foreign investment license, commercial registration (CR), and bank setup taking 4 to 8+ weeks. A Global Employer of Record (EOR) enables international technology, consulting, and engineering companies to hire talent in Saudi Arabia legally, quickly, and in full compliance with Nitaqat and Qiwa regulations without establishing a local company. The EOR acts as the legal employer, managing Qiwa electronic contracts, GOSI social security, Mudad WPS payroll disbursements, and compliant SAR payroll.

Economic Overview, Vision 2030 Mega-Projects & Riyadh RHQ Program

Saudi Arabia is the Middle East's economic superpower, driving Vision 2030 giga-projects (NEOM) and the Riyadh Regional Headquarters Program.

Key Economic Clusters

  • Vision 2030 Giga-Projects & Smart Cities: NEOM (The Line, Oxagon, Trojena), Red Sea Global, and Qiddiya entertainment megacity.
  • Riyadh RHQ & Financial Center (KAFD): Regional headquarters hub for global tech, consulting, and banking giants.
  • Energy, Petrochemicals & Green Hydrogen: Saudi Aramco petroleum, SABIC chemicals, and NEOM green hydrogen export plants.

Employment Contracts, Qiwa Electronic Platform & Nitaqat Saudization

Regulated by the Saudi Labor Law (Royal Decree No. M/51).

  • Mandatory Qiwa Electronic Contracts: All employment contracts must be registered and authenticated electronically on the Ministry of Human Resources and Social Development (MHRSD) **Qiwa portal**.
  • Nitaqat Saudization Compliance: Employers must maintain mandatory quotas of Saudi national employees based on industry sector and company size to maintain Platinum or Green Nitaqat compliance tiers.
  • Probation Period: Standard statutory probation is 90 days (3 months), extendable up to 180 days (6 months) with written employee agreement.

Working Hours, Mudad Wage Protection System (WPS) & Ramadan

Working Hours & Ramadan Schedule

  • Standard Hours: 40 to 48 hours per week (8 hours/day over 5 or 6 days). Reduced to **30 hours per week (6 hours/day)** during the holy month of Ramadan for Muslim employees.
  • Overtime Surcharges: Minimum 150% (1.5× hourly wage) of basic wage plus allowances for all overtime hours.
  • Mandatory Mudad WPS: All wages must be disbursed through the Ministry's **Mudad Wage Protection System** via authorized Saudi bank accounts.

Annual Vacation (21 to 30 Days), Public Holidays & Maternity

  • Annual Paid Vacation: Minimum 21 calendar days per year (for tenure < 5 years); increases to 30 calendar days per year after completing 5 years of continuous service.
  • Public Holidays: ~10 to 14 official public holidays (including Founding Day on 22 Feb, National Day on 23 Sept, Eid al-Fitr, and Eid al-Adha).
  • Maternity Leave: 12 weeks (84 calendar days) fully paid maternity leave provided by the employer (and GOSI). Paternity leave is 3 paid days.

Social Insurance (GOSI), End of Service Award (EOSA) & 0% Tax

Mandatory End of Service Award (*EOSA / Gratuity*)

Under Article 84 of the Saudi Labor Law, employees are legally entitled to statutory gratuity upon termination of employment:

  • First 5 Years of Service: 0.5 months' (15 days) basic salary for each completed year.
  • Subsequent Years (Year 6+): 1 full month's basic salary for each completed year of service.

Social Security (GOSI) Breakdown

Employee Category Employer Share (GOSI) Employee Share (GOSI) Coverage
Saudi Citizens 11.75% 9.75% Annuities pension (18%), unemployment SANED (1.5%) & occupational hazard (2%)
Expatriate Workers 2.00% 0.00% Occupational hazard and workplace injury insurance

Personal Income Tax: 0.0% (Zero Tax) on employment and salary income.

Termination, Article 77 Severance & Non-Renewal Rules

  • Notice Periods: Minimum 60 days written notice for indefinite contracts (30 days for fixed-term contracts).
  • Article 77 Compensation (Unjustified Termination): 15 days' salary per year of service for indefinite contracts (or remainder of contract for fixed-term contracts, minimum 2 months' salary).

Why Use an Employer of Record (EOR) in Saudi Arabia

  • Immediate Market Entry in Riyadh: Onboard senior executives, project managers, and engineers in KSA in days.
  • Qiwa, Mudad WPS & GOSI Automated Compliance: Seamless electronic registration of contracts on Qiwa and monthly payroll processing via Mudad WPS.
  • Iqama Work Visa Sponsorship: EOR manages Ministry of Foreign Affairs (MOFA) and Ministry of Human Resources work visa block allocations and Iqama cards.

Hiring in Saudi Arabia? Key Resources

Whether you are evaluating entity setup vs. using an Employer of Record, or looking for the best international payroll solution, our guides give you transparent benchmarks:

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