Hiring in Saudi Arabia: Complete Guide 2027
Everything you need to know about hiring and managing employees in Saudi Arabia
Overview
Saudi Arabia levies no income tax on salaries. Employer GOSI is 11.75% for Saudi nationals on the legacy schedule and 12.75% for those who joined after 3 July 2024 (from July 2026, rising until 2028); for an expatriate the employer pays 2% occupational hazards and nothing else. On top sit the SAR 800 monthly expatriate levy, work permit and iqama fees, and the end-of-service award of half a month per year. Every contract is registered on Qiwa, and the Nitaqat band of the employing entity decides whether it can bring in one more expatriate. That entity, not the EOR's brand, is what you buy.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Saudi Arabia
Payroll is monthly, in riyals, and every wage file goes through the Wage Protection System on Mudad; a late file blocks the establishment's Qiwa services. The employer needs a Commercial Registration, a GOSI subscription and a Qiwa profile. GOSI is calculated on basic salary plus housing allowance, capped at SAR 45,000 a month: a Saudi national registered before 3 July 2024 costs the employer 11.75% (9% annuities, 2% occupational hazards, 0.75% SANED) and pays 9.75%; later joiners are on the schedule that rises 0.5 point each July, 12.75% employer and 10.75% employee from 1 July 2026, until 2028. For an expatriate the employer pays 2%, the employee nothing. No income tax is withheld. The employer also carries the SAR 800 monthly expatriate levy, the work permit (about SAR 9,700 a year) and the iqama fee, which an EOR passes through at cost or with a margin: ask. CCHI health insurance is mandatory; no minimum wage applies to expatriates.
Key Labor Laws &
Requirements
Employment Contracts
- Registered on Qiwa, bilingual, Arabic prevails
- Expatriates on fixed-term contracts
- Probation up to 180 days
Leave & Time Off
- 21 days annual leave, 30 after 5 years
- Sick leave: 30 days full pay, then 60 at 75%
- Maternity 12 weeks since 2025
Termination Rules
- Notice 60 days from the employer, 30 from the employee
- End-of-service award: half a month per year, one month after 5
- Award cut to a third or two thirds on resignation before 10 years
COMPLIANCE
Qiwa Contracts, Nitaqat and End-of-Service Compliance in Saudi Arabia
Every employment contract must be registered and authenticated on Qiwa; an unregistered contract is the first red flag. Since the 2025 Labor Law amendments probation can run 180 days, maternity leave is 12 weeks, and on an indefinite contract the employer gives 60 days' notice, the employee 30. Expatriates must be on fixed-term contracts. The end-of-service award (article 84) is half a month's wage per year for the first five years and a full month per year after, on the final wage, cut to a third or two thirds if the employee resigns before ten years. Nitaqat quotas apply to the establishment that holds the contract, so an EOR's own band decides whether your expatriate gets a work visa. Ask for the band before the quote.
Key Challenges
- Nitaqat Saudization bands cap the expatriates an employing entity can carry
- SAR 800 a month expatriate levy, plus work permit and iqama fees
- End-of-service award: half a month per year, a full month after five years
- Two GOSI schedules run side by side since July 2024
- Arabic prevails in the bilingual contract registered on Qiwa
Country Highlights
Advantages
- No personal income tax on salaries
- Employer GOSI of 11.75–12.75% for Saudi nationals, 2% for expatriates
- Vision 2030 spending in energy, construction and technology
- Monthly pay through WPS leaves a verifiable payroll trail
- Riyadh works between European and Asian hours
Popular Industries & Roles
Technology
Avg. Salary: SAR 180k-SAR 360k
Riyadh's software, cloud and cybersecurity roles are funded by Vision 2030 programmes and the regional-headquarters rule for government contracts.
Energy & Petrochemicals
Avg. Salary: SAR 240k-SAR 480k
Aramco, SABIC and their contractors anchor the deepest engineering and process talent in the Gulf, from Dhahran to Jubail.
Construction & Giga-projects
Avg. Salary: SAR 200k-SAR 400k
NEOM, the Red Sea and Diriyah projects keep project managers, quantity surveyors and civil engineers in demand, mostly on fixed-term expatriate contracts.
Top 3 Providers in Saudi Arabia
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Auxilium
- GCC EOR across 6 Gulf markets
- UAE, Saudi, Qatar, Oman, Bahrain, Kuwait
- EOR cost calculator available
- Regional compliance and work permits
RemotePass
- MENA and Africa EOR specialist
- EOR from $349/month; no setup fees
- G2 4.8/5 (542 reviews); Trustpilot 3.8/5
- Visa sponsorship from $549/month
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
Frequently asked questions
Hiring in Saudi Arabia through an EOR, in short.
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How much does an employer pay on top of salary in Saudi Arabia?
Employer contributions in Saudi Arabia come to 11.75–12.75%; the largest mandatory line is GOSI pension 9–10%. With the other statutory benefits and a typical EOR fee, budget ~25–40% on top of gross salary.
What does an EOR charge per employee in Saudi Arabia?
Published EOR fees in Saudi Arabia run $500–900/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Saudi Arabia pay in tax and contributions?
Income tax is 0% on salaries and employee social contributions are 9.75–10.75% (9–10% pension), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Saudi Arabia?
3-7 Days (Saudi), 2-4 Weeks (expat) once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Saudi Arabia?
Auxilium, RemotePass and Deel hold the first three places in our ranking for hiring in Saudi Arabia. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Saudi Arabia.
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