TheBestEOR

Best Employer of Record in Saudi Arabia

Written by Martynas PupkeviciusFact-checked by Michael Ennis
Picture of Martynas Pupkevicius
Martynas Pupkevicius

EOR Advisor and Remote Work Editor

Our top employer of record in Saudi Arabia for 2026 is RemotePeople, from USD 499 per employee a month, ahead of G-P and Deel.

We tested all 10 providers with paid client accounts, real quotes and a live hire run through payroll. Social-insurance costs in Saudi Arabia depend on the employee’s nationality, and employers owe a payment when employment ends.

Flag of Saudi Arabia

Hiring in Saudi Arabia at a glance

Currency
SAR
Saudi riyal
Pay cycle
Monthly
Workers paid by the day get wages at least weekly
Working hours
48 hours
Weekly, 36 in Ramadan for Muslim employees
Annual leave
21 days
Calendar days, 30 after 5 consecutive years
Extra pay
Per contract
Regular rewards can become part of wages
Employer costs
Social insurance
Varies by nationality, plus payment when employment ends
Before you hire:
Confirm nationality-based insurance costs and which entity will sponsor the work permit.

Country hiring overview · Saudi Arabia

Hiring in Saudi Arabia, at a glance.

Compare the employment scope and any immigration work.

For a Saudi hire, ask for the local employer, proposed contract and the employee-specific eligibility checks. Compare the payroll and employment services separately from any work-visa or residence process, then agree realistic milestones for each.

Choose a hiring solution

Need a local employer?

Compare an EOR arrangement for your role before opening your own entity.

Already have a local employer?

Compare payroll and HR support against adding an EOR.

EOR service fee

Fees vary by provider.

Your quote should state the currency, fee per employee, minimum charge and billing commitment.

Onboarding

Paperwork affects the start date.

The contract, right-to-work checks, registrations and payroll deadlines all affect when employment can begin.

Employment costs

Allow for end-of-service pay.

Ask for the GOSI contributions and insurance costs that apply to the employee. The budget should also show the amount set aside for end-of-service payments.

Annual leave

Longer service increases leave.

The annual minimum is 21 days. It rises to at least 30 days after five consecutive years of service with the same employer.

Check before choosing

Confirm the employing entity, Qiwa/WPS scope, worker-specific GOSI treatment, benefits and any visa/Iqama responsibilities.

What your quote should include

Employment costs and service fees

1
Gross salary and agreed pay schedule
2
Applicable GOSI, insurance and end-of-service accrual
3
EOR fee: currency, per-employee billing, minimums and commitment
4
Setup, foreign exchange, extras and exit costs

Deposits and payroll funding

1
Amount and payment deadline
2
Whether funds are refundable or credited to payroll
3
Release conditions and refund timing
Show these separately from recurring expenses.

Key takeaways for hiring in Saudi Arabia

Check GOSI contribution history

Price a Saudi national using their GOSI contribution history. A new contract with an EOR does not make them a new entrant under the post-July 2024 system.

Date the pension contribution

For covered new entrants, the pension contribution is 10% on each side from 1 July 2026. Keep the contribution date and cohort on the quote so a future annual increase is visible.

Separate exit liabilities

Separate notice pay, the end-of-service award and compensation for an unlawful early exit. They answer different questions and should appear as separate items in an exit estimate.

Complete the Iqama transfer

An existing Iqama does not remove the transfer process. The receiving employer must meet establishment conditions and submit an employment contract through the official service.

Agree the start-date milestone

Agree who will complete the employee transfer and which event makes the start date firm.

Quick verdict

What is the best EOR in Saudi Arabia?

My top three: RemotePeople, G-P and Deel.

For a hire in Saudi Arabia, I’d shortlist RemotePeople first. It offers recruitment and EOR through one provider, with a dedicated account manager on both EOR plans. Its EOR Global plan starts at USD 499 per employee per month, or USD 199 on EOR Select where the hire qualifies. G-P, from USD 599 per employee per month, fits a company that wants to hire abroad while keeping its existing HR system. Deel, from USD 599 plus a mandatory Employer Liability Cost, fits when Saudi Arabia is one part of a wider employee and contractor programme.

Two things decide a Saudi hire: which entity can sponsor the work visa and Iqama under an open Nitaqat band, and the fee.

Ask for the legal employer’s name and registration details.

1
Editorial pick
RemotePeople logo

4.9/5

RemotePeople

Hiring in new markets with local HR support

Starting fee
$499

per employee / month

Countries
150+
where you can hire

EOR Select from $199 for eligible hires.

Deposit
1 month

of gross salary

Deposit refund
Within 5 days

of the final payment

Why consider it

Recruitment and EOR services through one provider.

Dedicated account manager in both EOR plans.

Check the fit

Recruitment is separately priced.

Before signing: Confirm quote currency, billing commitment, deposits, funding deadlines and refund terms. EOR Select eligibility depends on the hiring country and employee salary.

Both EOR plans list local contracts, payroll and tax administration, and statutory benefits administration. Salary, employer contributions and benefit costs are separate.

Visit RemotePeople ↗

2
G-P logo

4.2/5

G-P

Hiring abroad while keeping your existing HR system

Starting fee
$599

per employee / month

Countries
180+
where you can hire

Volume pricing is quoted for larger teams.

Deposit
1–2.5 months

of gross salary plus employer costs

Deposit refund
Per contract

agree a return date before signing

Why consider it

One flat starting fee in every listed country, with volume pricing for larger teams.

Right-to-work checks and local contracts are built into onboarding.

Check the fit

Partner entities employ hires in some countries, alongside G-P’s 100+ owned entities.

Before signing: Refund timing is set per contract, so agree a deposit return date. The deposit depends on a credit check.

At $599 a month, the first year for one hire is $7,188 in service fees. Salary, employer costs and the refundable deposit come on top.

Visit G-P ↗

3
Deel logo

4.7/5

Deel

Paying employees and contractors on one platform

Starting fee
$599

per employee / month

Countries
130+
where you can hire

Plus a mandatory Employer Liability Cost.

Deposit
1–1.5 months

of gross salary

Deposit refund
Within 60 days

of offboarding

Why consider it

EOR, contractor management and payroll for your own entities.

Month-to-month EOR service pricing available.

Check the fit

The country-specific Employer Liability Cost is mandatory.

Before signing: Confirm the Employer Liability Cost amount, benefit costs and any additional products. Monthly service terms do not remove employment notice, severance or other exit obligations.

The EOR pricing page lists 130+ countries. Broader platform coverage figures may include other services.

Visit Deel ↗

No provider pays for a position on this page; some outbound links pay a referral fee. See the funding model and methodology.

Entity, Iqama, Nitaqat band

All 10 EOR providers for Saudi Arabia, side by side

Fees are June 2026 list prices per employee per month.

I’d start a Saudi shortlist with the sponsoring entity and its Nitaqat band; those are the distinctions behind this country’s order. For the order across all markets, see the ranking of the best employer of record services worldwide. For a wider shortlist, browse EOR providers for Saudi Arabia.

Provider

Best For

Starting feeDepositOnboarding
1 RemotePeople logo RemotePeople 4.9/5 Rating Hiring in new markets with local HR support Starting fee: $499 USD / monthDeposit: 1 monthOnboarding: 5–8 days

My take

For a hire that needs a named contact, I’d look at RemotePeople’s dedicated account manager.

The service includes local employment contracts, payroll and tax administration, and statutory-benefits administration. Recruitment is separate.

EOR Global starts at USD 499 per employee per month. EOR Select starts at USD 199 for eligible countries and employee salary ranges. Salary, employer contributions, benefit costs and agreed extras are additional. The country quote determines eligibility, the final fee, billing commitment and payroll funding.

Fit check for RemotePeople, G-P and Deel

For a foreign hire, I’d choose a provider only after its Saudi proposal identifies the receiving employer, the permitted assignment and the route from the candidate’s present status to the agreed start date. Compare another shortlisted provider if it can document a workable route for this person and a clearer allocation of permit costs.

Deposit

1 month

Entity model

Own entities in core markets

First year, one hire

$5,988 in service fees

Reviewed by Martynas PupkeviciusFact-checked by Michael Ennis

Starting fee

$499

EOR Global. EOR Select starts at $199 where the country and employee salary qualify.

Against the 10 starting fees

$199 lowest$699 highest
2 G-P logo G-P 4.2/5 Rating Hiring abroad while keeping your existing HR system Starting fee: $599 USD / monthDeposit: 1–2.5 monthsOnboarding: 5–10 days

My take

G-P is worth a closer look if your requirements extend to custom API integrations.

I’d assess those alongside its EOR employment administration, benefits and reporting. EOR starts at USD 599 per employee per month, with volume discounts by quote. Salary, employer costs, benefit premiums and additional services are separate.

There is no minimum contract length for EOR hires. The proposal still sets the commercial billing and cancellation terms, along with the cost of any integration or implementation work.

Deposit

1–2.5 months

Entity model

100+ own entities, plus partners

First year, one hire

$7,188 in service fees

Reviewed by Martynas PupkeviciusFact-checked by Michael Ennis

Starting fee

$599

Confirm the included services and billing terms in your country quote.

Against the 10 starting fees

$199 lowest$699 highest
3 Deel logo Deel 4.7/5 Rating Paying employees and contractors on one platform Starting fee: $599 USD / monthDeposit: 1–1.5 monthsOnboarding: 2–5 days

My take

Deel would be on my shortlist if you need EOR payroll and benefits administration alongside separate contractor and HR products.

EOR starts at USD 599 per employee per month, with month-to-month billing available. Mandatory Employer Liability Cost is an additional charge based on gross salary, with rates varying by country. Salary, statutory employer costs and benefit premiums are also separate.

Contractor management starts at USD 49 per active contract per month. It is a separate service from EOR employment; currency conversion, payment-method charges and any required deposit also affect the amount funded.

Deposit

1–1.5 months

Entity model

Own entities and partners

First year, one hire

$7,188 in service fees

Reviewed by Martynas PupkeviciusFact-checked by Michael Ennis

Starting fee

$599

Month-to-month billing. Mandatory Employer Liability Cost is charged separately.

Against the 10 starting fees

$199 lowest$699 highest
4 Rippling logo Rippling 4.5/5 Rating Setting up payroll, laptops and app access for new hires Starting fee: $499 USD / monthDeposit: Per quoteOnboarding: 2–5 days

My take

Rippling makes more sense to me when you also need its HR, IT or finance products: shared employee data connects the workflows and reporting.

Device management and app access are separate products within that wider system.

Rippling EOR starts at USD 499 per employee per month, and the required Rippling Platform adds from USD 8 per employee per month plus a monthly base fee. The quote needs to show any selected HR, IT or finance products and the billing commitment. Salary, employer costs, benefits, deposits and payroll funding are additional to the software and service fees.

Fit check for Rippling, Oyster, Papaya Global and Borderless AI

I’d ask these providers for the same two examples: one Saudi payroll illustration and one early-exit illustration for your proposed contract. Choose this provider if the responsibilities and figures are clear enough for your finance team to approve. Consider another option if the quote cannot explain the employee’s GOSI cohort or the cost of ending the agreed term.

Deposit

Per quote

Entity model

Own entities and local partners

First year, one hire

$5,988 in EOR fees

Reviewed by Martynas PupkeviciusFact-checked by Michael Ennis

Starting fee

$499

Plus the required Rippling Platform, from $8 per employee per month and a monthly base fee. Confirm the billing terms and selected products.

Against the 10 starting fees

$199 lowest$699 highest
5 Oyster logo Oyster 4.5/5 Rating Using one onboarding process for hires across countries Starting fee: $699 USD / monthDeposit: ~1 monthOnboarding: 10–14 days

My take

Oyster covers payroll, expenses, time off and reporting, with onboarding and offboarding support.

Optional benefits packages cost extra. At USD 699 per employee per month on monthly billing, I’d weigh that service against the annual commitment described below.

Annual seats are priced by headcount and location and are non-refundable, but can be reused for replacement hires. Annual prepayment gives the lowest fee; higher-priced quarterly or semiannual payment options are available. Salary, employer costs and benefit premiums are additional, and a refundable deposit is required. Optional People Partner project work costs USD 300 per hour.

Deposit

~1 month

Entity model

Own entities and vetted partners

First year, one hire

$8,388 in service fees

Reviewed by Martynas PupkeviciusFact-checked by Michael Ennis

Starting fee

$699

Monthly billing. Annual seats are quoted separately, prepaid and non-refundable.

Against the 10 starting fees

$199 lowest$699 highest
6 Multiplier logo Multiplier 4.1/5 Rating Managing payroll, leave and expenses in one place Starting fee: $459 USD / monthDeposit: 1+ monthsOnboarding: 7–10 days

My take

My starting point with Multiplier would be Core, which covers employment administration, payroll, leave and standard workforce reporting.

Core starts at $499 per employee per month on monthly billing or $459 per month billed annually. I’d consider Growth if you need the integrations, custom reports and open APIs it adds. The quote needs to identify the dollar currency and chosen plan.

Country variations and mandatory add-ons affect the total. Implementation fees may apply, although the FAQ says setup is free; the quote must resolve that charge. Salary, employer costs and benefit premiums are additional.

Fit check for Multiplier, Pebl and RemoFirst

I’d use this as a shortlist on fees only when the employment and transfer scope is the same. For an employee already in Saudi Arabia, ask for the transfer steps, receiving-establishment eligibility and government charges in the proposal. Consider a higher-priced alternative if its complete quote includes necessary work that this proposal leaves outside the fee.

Deposit

1+ months

Entity model

Own entities and partners

First year, one hire

$5,508 in service fees

Reviewed by Martynas PupkeviciusFact-checked by Michael Ennis

Starting fee

$459

Core plan billed annually, or $499 per month on monthly billing. Confirm the dollar currency.

Against the 10 starting fees

$199 lowest$699 highest
7 Papaya Global logo Papaya Global 4.1/5 Rating Comparing payroll costs across countries in one report Starting fee: $499 USD / monthDeposit: 1–2 monthsOnboarding: 7–10 days

My take

Papaya brings EOR employees, payroll for a company’s own entities and workforce payments into one platform, with consolidated reporting and payroll approval tools.

That payroll and payments connection is the part I’d focus on when comparing it with a standalone EOR service.

Papaya’s EOR service starts at USD 499 per employee per month. The country quote must identify the billing commitment and any additional services. Salary and employer costs are separate.

Deposit

1–2 months

Entity model

Partner model; confirm employer

First year, one hire

$5,988 in service fees

Reviewed by Martynas PupkeviciusFact-checked by Michael Ennis

Starting fee

$499

The country quote sets the billing terms. Payroll-only processing is priced separately.

Against the 10 starting fees

$199 lowest$699 highest
8 Pebl logo Pebl 4.2/5 Rating Hiring people who need visa or relocation support Starting fee: $399 USD / monthDeposit: Per quoteOnboarding: 7–10 days

My take

Pebl, formerly Velocity Global, combines hiring, payroll, employee changes, reporting and offboarding in one platform.

EOR starts at $399 per employee per month; the country quote must identify the dollar currency and billing commitment. Salary, employer costs, benefits and additional services are separate.

I’d check Pebl’s deposit and exit terms before committing. A deposit is required before onboarding; its amount can change with salary, seniority or payment history. It is returned after the final invoice and outstanding balances are paid. Early exit can make the remaining committed-term service fees payable, subject to the agreement’s termination exceptions. Any discounted offer needs an end date and renewal price.

Deposit

Per quote

Entity model

Affiliates and local partners

First year, one hire

$4,788 in service fees

Reviewed by Martynas PupkeviciusFact-checked by Michael Ennis

Starting fee

$399

Confirm the country price and billing commitment.

Against the 10 starting fees

$199 lowest$699 highest
9 Borderless AI logo Borderless AI 4.0/5 Rating Getting 24/7 help with overseas payroll and HR Starting fee: $579 USD / monthDeposit: 1.5–3 monthsOnboarding: 7–12 days

My take

I’d use Borderless AI’s standard EOR fee of USD 579 per employee per month when planning beyond the promotion.

Eligible companies headquartered outside Canada may qualify for USD 399 on fees billed through 31 December 2026. USD 579 applies from 1 January 2027, including promotional customers; country and employment-type exceptions apply. Salary, employer costs and benefits are additional.

A refundable deposit is required before the employee starts. The schedule is 1.5 months of gross salary plus employer costs, benefits and platform fees with ACH or three months by wire and other methods, with country variations. The base includes salary, employer contributions, benefits and platform fees. Late-payment issues can raise it to six months. Deposits are released after the relevant obligations are settled.

Deposit

1.5–3 months

Entity model

Own entities

First year, one hire

$6,948 in service fees

Reviewed by Martynas PupkeviciusFact-checked by Michael Ennis

Starting fee

$579

Eligible companies headquartered outside Canada can pay $399 on fees billed through 31 December 2026.

Against the 10 starting fees

$199 lowest$699 highest
10 RemoFirst logo RemoFirst ⚠ Trustpilot warning 0.5/5 Rating Making a first overseas hire on a tight budget Starting fee: $199 USD / monthDeposit: About 1 monthOnboarding: 5–9 days

My take

We moved RemoFirst to last place on 8 November 2026: Trustpilot has suspended its rating for a breach of its guidelines and removed fake reviews.

RemoFirst says it works exclusively with vetted in-country partners. Here, that means a local partner company, not RemoFirst, would normally employ your hire, and payroll changes, questions and exits pass through both companies, which can slow answers. US$199 is RemoFirst’s starting fee and varies by country, so get this country’s quote before you compare. The lack of a minimum contract term or headcount is what I like about RemoFirst’s offer. EOR employment starts at USD 199 per employee per month and includes a dedicated customer success manager. The fee can vary with country requirements. Salary, employer costs, benefits, deposits and optional services are separate.

Contractor management is free for onboarding, identity checks, contract storage and expenses. Contractor payments cost USD 25 per contractor in months when a payment is processed; payment-provider and transfer fees may also apply. These contractor services are separate from EOR employment.

Deposit

About 1 month

Entity model

Partners, not own entities

First year, one hire

$2,388 in service fees

Reviewed by Martynas PupkeviciusFact-checked by Michael Ennis

Starting fee

$199

RemoFirst advertises no minimum contract term or employee count. Confirm any country-specific charges.

Against the 10 starting fees

$199 lowest$699 highest

Pricing note (26 September 2026). Recalculate cost illustrations with your quote.

Which top pick · Saudi Arabia

I’d build the Saudi shortlist around the worker’s status, role, employment arrangement and full written quote. RemoFirst advertises EOR from $199 per employee/month. RemotePeople lists Global from $499 and Select from $199 where country and salary qualify.

For a wider multi-country program, compare Deel’s platform and Papaya’s payroll service against the same service scope. Confirm the proposed local legal employer, applicable registrations and any employee-specific immigration requirements. Agree the support commitments, documents and payroll cutoff.

Request an itemised quote for this hire, then enter its recurring costs in USD in the EOR cost calculator.

Local Saudi alternatives (researched, unranked): several Gulf-focused firms also provide EOR or local employment in the Kingdom. RemotePass offers Saudi EOR with Iqama sponsorship and Saudization compliance, advertised from $350 per month billed annually. None of these firms is scored above: they are Gulf and Saudi specialists, not multi-country platforms. An employer hiring only in the Kingdom may still find one a reasonable fit. Confirm the entity’s Nitaqat band and Qiwa visa allocation either way.

Get your EOR discount

Get up to 30% off eligible EOR service fees. Your quote confirms the discount and terms.

How the comparison works

How these providers compare for Saudi Arabia

Can the sponsor’s Nitaqat band support this hire?

One question decides the Saudi order: whose entity sponsors the Iqama, and under which Nitaqat band.

The Saudi order can differ from the overall provider order because local hiring requirements and service fit differ.

Compare the named Saudi employer, full quote, support commitments and any proposed immigration arrangement for your worker.

Employment framework

Employment and payroll in Saudi Arabia

Match the Qiwa contract to the wage and insurance files.

Qiwa records the employment contract, GOSI holds insurance registration and Mudad supports wage reporting. An expatriate’s Iqama status adds a separate approval path to the hiring schedule.

Saudi employment contract and entity

The EOR’s Saudi entity, or its local partner entity, becomes the legal employer on a contract governed by the Saudi Labor Law, including the reforms that took effect in 2025.

You direct the day-to-day work. The employing entity holds the Qiwa contract, GOSI record and Mudad wage file, with the statutory obligations attached to them.

Qiwa, GOSI and wage reporting

Qiwa contract record

The EOR documents the employment contract. Nitaqat requires this documentation for the worker to count toward Saudization.

GOSI registration

The EOR registers the employee with the General Organization for Social Insurance and handles the contribution payments.

Mudad and WPS

Private-sector salaries run through the Wage Protection System and are reconciled against the Qiwa contract and GOSI record.

Payroll deductions and allowances

There is no income tax to withhold. For a Saudi national, payroll deducts the employee’s GOSI share; for an expatriate, there is no employee GOSI deduction. The employer contribution, salary and contractual allowances form part of the payroll cycle.

Confirm the Iqama route

Confirm whether the hire is a Saudi national, an expatriate with a transferable Iqama or a foreign worker who needs a new permit. Identify the proposed local legal employer and the immigration support offered for this employee.

Coordinate contract, immigration and payroll

1

Agree and register employment terms

After you agree salary and the proposed start date, the EOR collects the candidate’s details, generates the bilingual contract, documents it on Qiwa and opens the GOSI record.

2

Complete new-permit stages where required

For a foreign hire requiring a new permit, the entity files the block visa with the Ministry of Human Resources. The worker enters on the work visa, completes the medical and receives the Iqama through Jawazat. Ask the provider for the expected date of each required approval.

3

Start the monthly payroll cycle

Ongoing payroll runs monthly through WPS with GOSI remittances. You approve relevant timesheets or expenses and manage the work; the employing entity keeps the government records aligned.

Employer cost

Statutory employer contributions in Saudi Arabia

GOSI rates differ for Saudi and expatriate hires.

There is one statutory employer contribution in Saudi Arabia, GOSI, and the rate depends on whether the hire is a Saudi national or an expatriate. All figures as of 2026. There is no income tax.

Fig. 2 · Where the ~12.75% goes: employer contributions as a share of gross, within the 2026 ceilings
Contribution Employer rate Cap / basis Agency
Contribution

GOSI, Saudi national (new system)

Employee also pays 10.75% from Jul 2026
Employer rate
12.75% from 1 Jul 2026
Cap / basis
Basic + housing, capped at SAR 45,000/mo
Agency
GOSI
Contribution

Pension (annuities)

Steps up 0.5% each July to 2028
Employer rate
10% from 1 Jul 2026
Cap / basis
Part of the 12.75% above
Agency
GOSI
Contribution
Occupational hazard
Employer rate
2%
Cap / basis
Part of the 12.75% above
Agency
GOSI
Contribution

SANED (unemployment)

Employee also pays 0.75%
Employer rate
0.75%
Cap / basis
Part of the 12.75% above
Agency
GOSI
Contribution

GOSI, expatriate

No employee deduction
Employer rate
2% (occupational hazard only)
Cap / basis
Basic + housing, capped at SAR 45,000/mo
Agency
GOSI

Fig. 3 · Mandatory employer contributions in Saudi Arabia, 2026 rates and monthly ceilings

The Saudi national rate shown is the new GOSI system that applies to anyone first enrolled after 3 July 2024, provided the employee has no earlier contribution periods covered by the previous civil pension or social insurance systems; under it the rates step up 0.5 percent each July for both sides, so the employer paid 12.25 percent from January to June 2026, pays 12.75 percent from 1 July 2026, and reaches 13.75 percent in July 2028. Employees who were already registered before that date stay on the legacy system at an 11.75 percent employer rate. For a Saudi national earning SAR 15,000, the employer GOSI from July 2026 is about SAR 1,913 a month, roughly 12.75 percent on top of gross. For an expatriate on the same salary the employer pays 2 percent, about SAR 300. The contribution base is basic salary plus housing, capped at SAR 45,000, and the EOR fee sits on top of all of this.

A new EOR contract does not reset GOSI history

Two Saudi employees with the same package can have different contribution costs. The deciding fact is their insurance history, not whether they are new to your business. GOSI limits the new system to entrants without earlier contribution periods under the previous civil pension or social insurance systems.

Ask the provider to identify the applicable cohort before approving the offer. For a covered new entrant, the pension element alone is 10% of the contribution wage for both employer and employee from 1 July 2026; the official schedule rises again in July 2027. Show the pension element, other applicable branches and the contribution wage separately. That makes the quote easier to compare and prevents a routine employer transfer from being priced as a first-ever entry into the system.

Working time & leave

Working hours, overtime and statutory leave

Ramadan changes working hours for Muslim employees.

The Saudi Labor Law sets a 48-hour week, reduced to 36 hours for Muslim employees during Ramadan, with overtime calculated as the hourly wage plus 50% of basic hourly pay and annual leave that rises with tenure.

Hours and pay

Standard week 48 hours
Standard day 8 hours
Ramadan (Muslim staff) 36 hours/wk
Overtime Hourly wage + 50% of basic hourly pay
Weekly rest Friday (min 24h)
Public holidays/yr ~4 events (Eids, National & Founding Day)

Fig. 4 · Hours and overtime in Saudi Arabia · 48-hour week, 36 hours for Muslim staff during Ramadan

Overtime is paid at the hourly wage plus 50% of basic hourly pay; agreed paid compensatory leave may replace overtime pay, for any hour beyond the standard schedule. The standard working week runs Sunday to Thursday with Friday the weekly rest day; many employers run a Friday and Saturday weekend. The gazetted public holidays cluster around Eid al-Fitr, Eid al-Adha, Saudi National Day on 23 September and Founding Day on 22 February, with the Eid breaks running several days each.

Statutory leave

Annual leave
by tenure
21 / 30 days
Sick leave (full pay) first 30 days
Sick leave (75% pay) next 60 days
Maternity 12 weeks
Paternity 3 days

Fig. 5 · Statutory leave in Saudi Arabia · 21 days rising to 30 after five years; maternity 12 weeks at full pay

Annual leave is 21 days a year, rising to 30 days after five years of continuous service. Paid sick leave runs in tiers in a single year: the first 30 days at full pay, the next 60 days at three-quarters pay, and a further 30 days unpaid, on a medical certificate. Maternity leave is 12 weeks at full pay for every employee regardless of length of service, under the February 2025 amendments that repealed the old service-based pay tiers, and six weeks after the birth are mandatory; paternity leave is 3 days. There is no statutory 13th-month salary in Saudi Arabia.

Ending employment

Probation, notice and the end-of-service award

Notice and the end-of-service award are separate costs.

Employer notice runs at least 60 days on a monthly paid indefinite contract, and on an employer-initiated exit the end-of-service award under Article 84 accrues from the first day of service, pro rata. Dismissal without a valid reason adds compensation, so the EOR documents the basis.

Stage / tenure Notice End-of-service award (Article 84)
Stage / tenure
Probation (up to 180 days)
Notice
None required either side
End-of-service award (Article 84)
None if ended during probation
Stage / tenure
Indefinite contract, employer ends
Notice
60 days written
End-of-service award (Article 84)
Accrues from day one, pro rata
Stage / tenure
Indefinite contract, employee ends
Notice
30 days written
End-of-service award (Article 84)
Resignation tiers apply
Stage / tenure
First 5 years of service
Notice
n/a
End-of-service award (Article 84)
½ month wage per year
Stage / tenure
Each year beyond 5
Notice
n/a
End-of-service award (Article 84)
1 month wage per year

Fig. 6 · Notice and the Article 84 end-of-service award · calculated on the last full wage, including fixed regular allowances

The end-of-service award is calculated on the last full wage, including fixed and regular allowances such as housing and transport, not just basic salary. On an employer-initiated exit the award accrues from the first day of service, pro rata for fractions of a year; the tenure floors apply only to resignation, where the worker receives one-third of the award after two to five years, two-thirds after five to ten years, the full award after ten years, and nothing under two. Saudi Arabia has no at-will employment: unless the contract specifies compensation, Article 77 provides fifteen days’ wage per service year for unlawful termination of an indefinite contract, with a two-month minimum; notice under Articles 75–76 remains separate, so the EOR builds the documented case before any exit.

Exit of a 3-year employee on SAR 15,000/month
Wage basis = SAR 15,000 (last full wage)

End-of-service award

3 years × ½ month (first-5-years rate) = 1.5 months × SAR 15,000
SAR 22,500

Notice, paid in lieu (employer ends)

60 days ≈ 2 months × SAR 15,000
SAR 30,000

Accrued unused leave

Assume 10 days outstanding × (SAR 15,000 / 30)
SAR 5,000

Indicative exit cost

Before any unlawful-dismissal compensation
SAR 57,500

Fig. 7 · Exit of a 3-year employee on SAR 15,000/month · indicative cost before any unlawful-dismissal compensation

The end-of-service award of SAR 22,500 assumes the full employer-initiated accrual; a resignation at the same tenure would pay one-third of it, about SAR 7,500. For an unlawful termination, Article 77 applies unless the contract sets specific compensation. On this indefinite-contract illustration, the statutory two-month minimum makes the additional compensation SAR 30,000, rather than SAR 22,500. Notice under Articles 75–76 is a separate item. The total excludes any negotiated settlement. For where a 1.5-month award on three years’ service sits internationally, the termination across jurisdictions guide holds the comparison.

Price the remaining contract term before you approve an exit

The 60-day employer notice rule for a monthly paid indefinite contract is not a universal exit price. For a fixed-term agreement, first look at its end date, renewal provisions and any agreed compensation clause. Under the statutory default for an unlawful termination, a fixed-term contract can produce compensation based on the remaining term, subject to the two-month minimum.

A useful EOR exit estimate therefore starts with the proposed legal route and the actual contract. Ask for separate figures for notice where applicable, the end-of-service award, unused leave and any additional compensation. Ending your commercial agreement with the provider does not answer what is owed to the employee. Confirm the legal grounds for termination and agree how to fund it before telling the employee that their job has ended.

Payroll & tax

Payroll cycle and income tax in Saudi Arabia

Saudi payroll runs in riyals and reports wages via Mudad.

Monthly payroll through WPS, no income tax, riyals throughout. Each month the EOR keeps the Mudad wage file, the GOSI remittance and the documented Qiwa contract aligned.

Saudi Arabia levies no personal income tax on employment income, for Saudi nationals or expatriates, so gross salary and take-home pay are effectively the same before voluntary deductions. The only mandatory payroll deduction is the employee GOSI share, and only for Saudi nationals: 10.75 percent from July 2026 under the new system, rising with each July step-up. Expatriates have no GOSI deduction at all. That makes Saudi payroll mechanically simpler than most markets, but the compliance layer sits elsewhere, in the systems that have to reconcile.

Payroll runs monthly and must be paid through the Wage Protection System (WPS). For the private sector, salaries route via Mudad, the payroll platform now tightly integrated with Qiwa, GOSI and the banks, so the wage paid has to match the documented Qiwa contract and the GOSI-registered salary or the payment flags. The currency is the Saudi riyal (SAR), pegged at SAR 3.75 to one US dollar, which removes the FX volatility you carry in a free-floating market. There is no statutory 13th-month salary or extra pay period; a year-end bonus is contractual. Wages for monthly-paid staff fall due at the end of the month.

Two payroll realities catch foreign employers.

First, the systems are interlocked: a hire is not fully compliant until the Qiwa contract, the GOSI registration and the WPS salary all agree, and Nitaqat now counts only Saudi employees whose contracts are documented on Qiwa. A national EOR handles that reconciliation as routine; a finance team running Saudi payroll from abroad often does not.

Second, allowances matter more than in many markets because housing forms part of both the GOSI contribution base and the end-of-service award calculation, so a large housing allowance raises both the monthly employer cost and the eventual exit liability. The EOR structures the package with that in view.

Saudization & the contract

Nitaqat, the employment contract and 13th-month norms

Check the Saudi hiring quota before setting a start date.

What Saudization means for an EOR hire, what the local contract must contain, the rules on fixed-term hires, and whether you owe a year-end bonus.

Nitaqat is the Saudization quota system that bands every employer on the share of Saudi nationals it employs, by sector and company size, and the band is the gate to almost everything: a green-band entity can sponsor work visas, renew Iqamas and bid for government contracts, while a non-compliant band has its visa allocation frozen. The 2026 to 2028 phase, effective 26 April 2026, raised sector quotas across healthcare, engineering, accounting, marketing and sales, retired the yellow tier so an entity now sits effectively green or red, and tied Saudization credit to contracts documented on Qiwa.

The employment contract must be in writing and bilingual, Arabic and the other working language, and in any dispute the Arabic version takes precedence, so the EOR supplies a properly translated contract rather than an English-only document. The contract states the wage, allowances, hours, leave and notice, and must be documented on Qiwa for the hire to count toward Saudization. Probation can be set at up to 180 days under the 2025 amendments, and during it either party may end the contract without notice, compensation or an end-of-service award.

Fixed-term contracts are common in Saudi Arabia, particularly for expatriates whose contract tracks the Iqama period, and a fixed term that runs its course ends without the indefinite-contract notice, though the end-of-service award still applies past one year. There is no statutory 13th-month salary. A year-end or performance bonus is customary in parts of the private sector and many candidates expect it, but it is not mandated; if you offer one, write it into the contract as guaranteed or performance-linked so the basis is unambiguous, and note that a fixed, regular allowance feeds the GOSI base and the end-of-service calculation. The EOR pays any bonus through WPS payroll like any other wage.

Division of responsibility

What the EOR handles, and what stays with you

Qiwa identifies the legal employer on the contract.

Qiwa identifies the employer on each contract. Confirm which establishment is responsible for GOSI, wage filings and the work permit.

Employer of record in Saudi Arabia diagram showing the service agreement, employment contract, and day-to-day collaboration between your company and the employee.
Employer of record in Saudi Arabia: how your company, the local employer and the employee work together. Select the image to enlarge.

The EOR handles

1
Standing as the legal employer, with the labour-court exposure that standing carries, on its Saudi or partner establishment
2
GOSI registration and monthly contribution remittance
3
Qiwa contract documentation, which Nitaqat now requires
4
WPS payroll through Mudad, reconciled to Qiwa and GOSI
5
The bilingual Arabic-and-English contract of employment
6
Statutory leave administration and the end-of-service accrual
7
Work visa, work permit and Iqama sponsorship where the entity’s Nitaqat band allows
8
Compliant offboarding, notice and the documented termination case

You keep

1
Direction of the day’s work: priorities, deliverables, reporting line
2
The package: salary, allowances, any bonus
3
The hire and fire decisions themselves
4
Performance management (a Saudi dismissal needs a documented, valid reason, and that record is yours to build)
5
What kit ships to the hire; device provisioning is a paid add-on at some EORs
6
The commercial contract with the EOR, including the IP terms it must write into the employment contract

Classification and work permission need separate reviews in Saudi Arabia. Engaging a worker as a contractor when they work fixed hours under your direction can lead the courts to treat them as an employee, exposing you to back GOSI and penalties; and an expatriate working without the correct work permit and Iqama exposes both sides to fines and deportation. An employment arrangement that meets local requirements can change how the worker is engaged from then on. It does not settle earlier classification liabilities, and the staffing model and any immigration route require their own assessment. The misclassification guide covers the tests the Saudi courts apply.

Work permits

Work visas, the Iqama and skill-based classification

Check the sponsor’s Nitaqat band and the role on Qiwa.

Saudi Arabia ties the work visa to the sponsoring entity’s Nitaqat band and, since mid-2025, to a skill-based classification on Qiwa.

Permit / status Who it is for Salary reality Notes
Permit / status
Work visa + Iqama
Who it is for
Foreign hire, full-time role
Salary reality
No fixed floor; market + skill class
Notes
Block visa via MHRSD, then Iqama via Jawazat
Permit / status
Skill-based class (since Jul 2025)
Who it is for
All expat work permits
Salary reality
High-skilled / Skilled / Basic
Notes
Classify or correct in Qiwa within 30 days
Permit / status
Transferable Iqama
Who it is for
Expat already in Kingdom
Salary reality
Existing package
Notes
Sponsorship transfer via Qiwa, no new entry visa
Permit / status
Saudi national (Nitaqat)
Who it is for
Citizen hire
Salary reality
SAR 4,000/mo min for quota credit
Notes
Higher floors by profession (engineering SAR 8,000)
Fig. 8 · Permit types and salary realities · no universal salary floor for an expat work visa; skill class and quota decide

A foreign hire enters on a block visa approved by the Ministry of Human Resources and Social Development, completes a medical, and receives an Iqama through Jawazat, a process of roughly four to eight weeks. Since July 2025 the role must be classified under the skill-based framework, High-Skilled, Skilled or Basic, with the classification set or corrected in Qiwa within 30 days. There is no universal salary floor for an expat work visa, unlike Malaysia’s Employment Pass tiers, but the position must fit the skill class and the sponsoring entity’s quota.

G-P and Multiplier say they would sponsor directly. Transferable-Iqama holders and Saudi nationals skip the question entirely.

Salary benchmarks

Indicative salary ranges

Compare base pay in riyals before adding allowances.

Monthly gross in riyals with a USD equivalent at the pegged SAR 3.75 to the dollar. Ranges are 2026 market data from SalaryExpert (ERI), PayScale and Glassdoor; use the midpoint as a starting offer, not a ceiling, and note that packages often add 20 to 40 percent in housing and transport allowances.

Check current pay data for the role and location before you make an offer.

Role Gross SAR/month USD/month (approx)
Role
Software engineer
Gross SAR/month
SAR 12,000–28,000
USD/month (approx)
$3,200–7,470
Role
Senior software engineer
Gross SAR/month
SAR 22,000–40,000
USD/month (approx)
$5,870–10,670
Role
Product manager
Gross SAR/month
SAR 16,000–32,000
USD/month (approx)
$4,270–8,530
Role
Accountant
Gross SAR/month
SAR 6,000–12,000
USD/month (approx)
$1,600–3,200
Role
Customer support
Gross SAR/month
SAR 5,000–9,000
USD/month (approx)
$1,330–2,400
Role
Sales manager
Gross SAR/month
SAR 15,000–30,000
USD/month (approx)
$4,000–8,000
Role
HR manager
Gross SAR/month
SAR 16,000–32,000
USD/month (approx)
$4,270–8,530
Role
Designer
Gross SAR/month
SAR 8,000–16,000
USD/month (approx)
$2,130–4,270

Fig. 9 · Salary benchmarks in Saudi Arabia, 2026 · monthly gross at the pegged SAR 3.75 to the dollar

Salaries cluster in Riyadh and the Eastern Province (Dhahran, Khobar) around the oil, finance and government-megaproject economy; Jeddah runs broadly similar for senior roles. Because there is no income tax, the gross figures above are close to net for the employee, which is part of why Saudi packages can look high against a taxed market. A foreign hire’s package usually carries a housing allowance that also lifts the GOSI base and the end-of-service liability, so price the all-in figure, not just base.

Selected monthly costs

What a Saudi software engineer costs per month

Compare two hires on SAR 20,000 gross a month.

The example calculates employer GOSI separately for a Saudi national and an expatriate. For a different salary, estimate employer payroll costs in Saudi Arabia.

Software engineer, Riyadh
Gross base: SAR 20,000/month
Gross salary SAR 20,000
Employer GOSI, expat (2%)
Occupational hazard only, capped on SAR 45,000
SAR 400
Employer GOSI, Saudi (12.75%)
New system, rate from 1 Jul 2026: pension + hazard + SANED
SAR 2,550
EOR fee illustration
RemoFirst $199 ≈ SAR 746
⚠ Trustpilot warning: rating suspended for a breach of its guidelines; fake reviews removed
SAR 746
Monthly total, expat + cheapest fee
SAR 21,146; annual ≈ SAR 253,752 (about $67,667)
SAR 21,146

Fig. 10 · Illustrated monthly subtotal of a SAR 20,000 engineer · expat GOSI 2%; Saudi-national GOSI 12.75% from 1 Jul 2026

For the illustrated expatriate, the employer GOSI line is SAR400; the selected salary-plus-GOSI-plus-fee subtotal is SAR21,146 monthly at the displayed US$199 conversion. At the same conversion, US$499 and US$699 give SAR22,271 and SAR23,021. These are not complete employment costs.

Employer-funded health insurance for covered employees and eligible dependants must be budgeted separately. The Saudi rules also assign specified recruitment, work-permit and Iqama charges to the employer. Ask for the actual insurance premium, applicable permit charges, allowances and end-of-service liability; no universal premium or levy has been added to this illustration.

EOR vs your own entity

EOR or your own Saudi entity: compare costs

Budget for Saudization from the day the company opens.

A MISA-licensed Saudi company is cheaper per head at scale but slow to stand up and carries Saudization obligations from day one.

Factor EOR Your own Saudi entity (MISA)
Factor
Setup cost
EOR
None
Your own Saudi entity (MISA)
~SAR 30,000–100,000+ first year (MISA licence, capital, CR)
Factor
Time to first hire
EOR
2 days–8 weeks (visa dependent)
Your own Saudi entity (MISA)
2–4 months (MISA, CR, GOSI, Qiwa, bank)
Factor
Per-employee cost
EOR
$199–699/employee/mo fee + GOSI
Your own Saudi entity (MISA)
GOSI only, plus shared overhead
Factor
Saudization (Nitaqat)
EOR
On the EOR or its partner
Your own Saudi entity (MISA)
On you from your first hires
Factor
Ongoing admin
EOR
Provider runs WPS, GOSI & Qiwa
Your own Saudi entity (MISA)
Your own payroll, GOSI, Qiwa, accounting
Factor
Compliance liability
EOR
On the EOR
Your own Saudi entity (MISA)
On you and your managers

Fig. 11 · EOR against your own MISA entity · a per-employee fee versus fixed overhead and the Saudization quota

At the cheapest $199 fee, the EOR adds about SAR 9,000 a year per employee over running GOSI yourself, and because expat GOSI is only 2 percent, the fee dominates the comparison. A MISA entity carries a meaningful first-year setup, ongoing accounting and payroll, and a Nitaqat obligation with teeth: miss your sector’s Saudization quota and the entity loses the ability to sponsor expat visas. An EOR or its partner already carries that quota.

Annualise the selected service fee for the hires you expect to keep, then compare it with the MISA company setup, ongoing licences, payroll, Saudization and candidate-specific immigration costs. Count setup costs over the same hiring horizon and include payroll, benefits, transition and exit charges on both sides. A higher service-fee plan moves the financial crossover earlier; lower recurring entity overhead or a longer hiring horizon can do the same. Short hiring duration, setup costs and the need for local administration can move it later. The legal suitability of each arrangement remains a separate question.

FAQ

EOR in Saudi Arabia: common questions

How does sponsorship affect the hiring timeline?

What is the best EOR in Saudi Arabia?

RemotePeople is our top pick for Saudi Arabia in 2026 (4.9/5), followed by G-P (4.2/5) and Deel (4.7/5). We opened paid accounts with all 10 providers on this page, priced real hires and ran payroll.

RemotePeople offers recruitment and EOR through one provider, with a dedicated account manager on both EOR plans. RemotePeople’s EOR Global plan starts at USD 499 per employee per month, and EOR Select at USD 199 where the hire qualifies. G-P starts at USD 599 per employee per month; Deel starts at USD 599 plus a mandatory Employer Liability Cost.

How does an employer of record work in Saudi Arabia?

An employer of record in Saudi Arabia becomes the worker’s legal employer through a local employing entity, while your company directs the day-to-day work. The EOR registers the employee with GOSI and remits contributions monthly, documents the contract on Qiwa, pays salary through WPS via Mudad, issues the bilingual Arabic-and-English contract and accrues the end-of-service benefit. It can sponsor the work visa, work permit and Iqama only where its establishment’s Nitaqat band allows.

How fast can an EOR onboard an employee in Saudi Arabia?

Estimated onboarding times for Saudi Arabia range from 2 to 14 days across the providers we tested. By provider: Deel 2–5 days, Rippling 2–5 days, RemotePeople 5–8 days, G-P 5–10 days and Oyster 10–14 days.

For a foreign hire who needs a new work visa and Iqama, add four to eight weeks for the block visa, entry, medical and Iqama issuance through Qiwa and Jawazat.

How much does an EOR cost in Saudi Arabia per month?
Published service fees for Saudi Arabia run from USD 199 to USD 699 per employee per month across the 10 providers we tested: RemoFirst from USD 199; RemotePeople Global from USD 499, or Select from USD 199 only where country and salary qualify; Deel from USD 599 plus mandatory Employer Liability Cost; G-P from USD 599; Oyster USD 699 on monthly billing, with annual seats quoted separately. Multiplier Core advertises $499 monthly or $459 per month billed annually; Pebl advertises $399, with currency and commitment to confirm. Rippling starts at USD 499 plus its required platform from USD 8 per employee, and Papaya Global at USD 499. Borderless AI is USD 579 standard, with an eligible USD 399 promotion on fees billed through 31 December 2026. All amounts are per employee/month; salary and employment costs are separate. On top of the fee you pay the employee’s gross salary plus the employer GOSI contribution: 12.75 percent from 1 July 2026 for a Saudi national hired under the new GOSI system (12.25 percent January to June 2026), or 2 percent for an expatriate, both on basic salary plus housing capped at SAR 45,000.
 
What employer contributions are mandatory in Saudi Arabia?
GOSI social insurance only. For a Saudi national enrolled under the new system the employer pays 12.75 percent from 1 July 2026 (10 percent pension, 2 percent occupational hazard, 0.75 percent SANED unemployment); the pension share steps up 0.5 percent each July until 2028. For an expatriate the employer pays 2 percent for occupational hazard, with no pension or SANED. Contributions are calculated on basic salary plus housing, capped at SAR 45,000 a month. There is no income tax.
 
Can an EOR sponsor a work visa and Iqama in Saudi Arabia?

Only a provider whose proposed employment arrangement meets the Saudi rules can support the relevant process. A non-Saudi worker needs work authorisation and must be under an employer’s responsibility; Saudi law also restricts working for another employer outside the prescribed procedures.

Ask for the named sponsoring establishment, the permitted role, the provider’s assessment of the actual client assignment and the work-permit and Iqama process. The quote should separately identify employer-funded permit charges and health insurance. Do not promise a start date before that case review.

What is the minimum wage in Saudi Arabia in 2026?
There is no universal statutory minimum wage for all workers, but a Saudi national must earn at least SAR 4,000 a month to count toward the employer’s Nitaqat Saudization quota, raised from SAR 3,000. Some professions carry higher floors for quota credit, including engineering at SAR 8,000 and dentistry at SAR 9,000. The SAR 4,000 figure is the practical minimum for any Saudi hire an employer wants counted in its Saudization band.
 
How much notice and end-of-service award applies when terminating in Saudi Arabia?
For monthly paid indefinite contracts, employer notice is at least 60 days and employee notice at least 30 days; other payment arrangements follow their applicable rules. The end-of-service award under Article 84 is half a month’s wage for each of the first five years and a full month’s wage for each year after five, on the last full wage including fixed allowances. A three-year employee on SAR 15,000 receives about SAR 22,500 in end-of-service award. Unless the contract specifies compensation, unlawful termination of an indefinite contract adds Article 77 compensation of fifteen days’ wage per service year, with a two-month minimum. For this three-year illustration that minimum is SAR 30,000; notice remains separate.
 
What currency and payroll cycle does Saudi Arabia use?
The Saudi riyal (SAR), pegged at SAR 3.75 to one US dollar. Payroll runs monthly and salaries must be paid through the Wage Protection System (WPS), with private-sector wages routed via Mudad and matched against the Qiwa contract and GOSI record. There is no statutory 13th-month salary; a bonus is contractual. Wages for monthly-paid staff are due at the end of the month, and GOSI contributions are remitted monthly.
 
Can I convert a Saudi contractor to an EOR employee?
I’d review the earlier contractor relationship separately from the proposed employment arrangement. A worker engaged as a contractor who in practice works fixed hours under your direction can be treated as an employee. An expatriate working without the correct work permit and Iqama exposes both sides to fines and deportation. An employment arrangement that meets local requirements can change how the worker is engaged from then on, but it does not settle earlier classification liabilities. Confirm the staffing model, Arabic-and-English contract documentation on Qiwa, GOSI registration, WPS payroll and any permitted Iqama sponsorship for this worker. The contractor misclassification guide explains the classification issues to review.
 
Do I need a Saudi entity to hire one person in Saudi Arabia?
No. An EOR employs the worker on its Saudi entity or its vetted local partner entity, so you hire without a MISA investment licence and a commercial registration of your own. Standing up your own Saudi entity through MISA runs roughly SAR 30,000 to SAR 100,000-plus in the first year with capital, licensing and ongoing Saudization obligations. At the $199 floor the EOR premium is about SAR 9,000 per employee per year, which stays cheaper than carrying a MISA entity and its Saudization quota until about six to ten Saudi employees.
 
What is Nitaqat and does it apply to an EOR hire?
Nitaqat is the Saudization quota system that bands each employer on the share of Saudi nationals it employs by sector and size; the 2026-2028 phase retired the old yellow tier, so an entity now sits effectively compliant (green) or non-compliant (red), and the band governs whether the company can sponsor work visas, renew Iqamas and bid for government contracts. The quota sits with the employing entity, so an EOR with a healthy Nitaqat band can sponsor your expat hire, while one in a low band may have its visa allocation frozen. Ask any partner-routed provider for its sponsoring entity’s current band.
 
Is there really no income tax in Saudi Arabia?

Correct. Saudi Arabia levies no personal income tax on employment income for Saudi nationals or expatriates, so gross salary and take-home pay are effectively the same before voluntary deductions. The only payroll deductions are the employee GOSI share for Saudi nationals (10.75 percent from July 2026 under the new system) and any contractual items. Expatriates have no GOSI deduction. Employers should still budget the 12.75 percent or 2 percent employer GOSI contribution on top of gross.

Sources and as-of dates

Article references

Most of the numbers above live on the platforms that enforce them: GOSI, Qiwa, Mudad. The one with a built-in expiry is the GOSI rate, which steps up every 1 July until 2028; everything here is stated as of July 2026.

Hiring facts Checked 2 Oct 2026

Hiring facts

Checked 2 October 2026
Eligibility, local and collective rules apply. EOR fees extra.

Saudi Labor Law 5 sources

Saudi Labor Law, including the 2025 amendments: normally eight hours a day or 48 hours a week, with reduced Ramadan hours for Muslims. Overtime is the hourly wage plus 50% of basic hourly pay; agreed paid compensatory leave may replace overtime pay. Annual leave is at least 21 days, rising to 30 after five consecutive years with the employer. Sick leave is 30 days at full pay, 60 at three-quarter pay and 30 unpaid. Employer notice is at least 60 days for monthly paid indefinite contracts.

End-of-service award 5 sources

Article 84 bases the end-of-service award on the last wage: half a month per year for the first five years and one month per year thereafter, with proportionate credit for part-years. The wage definition includes contractual allowances, subject to the Article 86 exclusion that may be agreed for variable commissions and similar pay. Article 85 reduces resignation awards to one-third after two to five years, two-thirds after more than five but less than ten, and the full award after ten years; Article 87 sets exceptions.

GOSI 3 sources

For Saudi entrants with no contribution history before 3 July 2024, the new-system employer total is 12.75% from 1 July 2026: 10% pension, 2% occupational hazards and 0.75% SANED. It was 12.25% in January–June 2026 and is scheduled to reach 13.75% in July 2028. The ordinary legacy employer total is 11.75%; non-Saudi workers generally attract the 2% occupational-hazards contribution, subject to applicable GCC coverage rules. The contributory wage includes basic pay and housing, capped at SAR 45,000 monthly.

Income tax 2 sources

Employment earnings in Saudi Arabia are not subject to Saudi individual income tax. This does not extend automatically to consulting, business or other non-employment income. PwC Worldwide Tax Summaries was last reviewed on 29 July 2026; ZATCA also distinguishes qualifying employment relationships from taxable visiting-expert services.

Minimum wage for Nitaqat credit 3 sources

A Saudi employee generally needs monthly pay of SAR 4,000 for one full Nitaqat credit; SAR 3,000 to below SAR 4,000 generally earns half credit. These are Saudization-counting thresholds, not a universal wage floor. Profession-specific rules include SAR 8,000 for covered engineering roles and SAR 9,000 for covered dentistry roles, with establishment-size and professional-accreditation conditions.

Nitaqat (Saudization) 2 sources

Nitaqat uses activity- and workforce-based Saudization requirements. MHRSD published an updated procedural guide on 22 January 2026. Saudi employees must have electronically documented Qiwa contracts to count toward Nitaqat from 15 April 2026. Check the guide and the establishment’s Qiwa classification for its applicable annual target.

Work visa and Iqama 3 sources

Employers apply for work visas through Qiwa and arrange employees’ Iqama residence permits through the relevant government services. MHRSD’s work-permit guide classifies non-Saudi workers as high-skilled, skilled or basic on Qiwa, with rollout dates of 5 July 2025 for existing workers and 3 August 2025 for incoming workers.

Payroll compliance 2 sources

Wage Protection System files are submitted through Mudad’s Compliance System. The process uses employee social-insurance registration and employer/employee bank-account information. The Saudi riyal’s established peg is SAR 3.75 to USD 1.

Probation and notice 4 sources

Probation must be stated in the contract and may total up to 180 days; either party may end it, with no statutory compensation or end-of-service award for that period. For monthly paid indefinite contracts, notice is at least 60 days from the employer or 30 from the employee; other indefinite contracts require 30 days from either side. Unless the contract specifies compensation, unlawful termination compensation is 15 days’ wage per service year for indefinite contracts or remaining-term wages for fixed-term contracts, with a two-month minimum.

Salary benchmarks 2 sources

PayScale provides Saudi software-engineer annual base and total pay, with 145 profiles updated on 8 April 2026. Its broad sample and outliers cannot pin down this article’s monthly role ranges or medians. The SAR3.75-per-USD conversion reflects the riyal’s dollar peg.

Provider pricing, entity model and onboarding 10 sources

October 2026 sources Checked 19 Oct 2026

GOSI — scope of the new Social Insurance Law — No prior contribution periods; law effective 3 July 2024. Checked 19 October 2026.

GOSI — phased contribution increases — Official schedule: pension contribution on each side 10% from 1 July 2026; later annual steps. Checked 19 October 2026.

HRSD — Labor Relations, Articles 75–77 — Notice, notice compensation and default unlawful-termination compensation by contract type; two-month minimum. Checked 19 October 2026.

HRSD — Social protection employment questions — Early fixed-term exits, contractual compensation exception, end-of-service and unused-leave items. Page dated 17 June 2026. Checked 19 October 2026.

HRSD — transfer of expatriate workers — Receiving-establishment conditions, wage-protection and permit status, employment-contract submission through Qiwa. Checked 19 October 2026.

Ask each provider to separate salary, GOSI contributions and its service fee. Use the directory to compare EOR providers for Saudi Arabia, or see the country guides for another market. The EOR cost calculator totals the recurring USD amounts from each proposal.

This guide is for general information only and does not provide legal, tax, accounting, or financial advice. For advice about your business, consult a qualified professional familiar with the rules where you hire. The research methodology explains how TheBestEOR assesses sources.