Saudi Arabia
With localized contracts, easy invoice management, and best-in-class compliance, you can grow your team in Saudi Arabia with confidence. Currently, you can hire and manage contractors in Saudi Arabia through Remote, but our EOR services are not yet live.
- Capital City
Riyadh
- Currency
Saudi riyal (﷼, SAR)
- Languages
Arabic
- Population size
34,218,169
Facts & Stats
- Capital City
Riyadh
- Currency
Saudi riyal (﷼, SAR)
- Languages
Arabic
- Population size
34,218,169
- Ease of doing business
Easy
- Cost of living index
49.95 (2021)
- Payroll frequency
Monthly
- VAT - standard rate
5%
- GDP - real growth rate
0.3% (2019)
Grow your team in Saudi Arabia with Remote
Looking to employ workers in Saudi Arabia? Companies hiring in Saudi Arabia must either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in Saudi Arabia and keep you compliant at all times. Remote can hire, onboard, and pay your team in Saudi Arabia so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Saudi Arabia. to get started or talk to an expert for more details.
Risks of misclassification
Saudi Arabia, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Saudi Arabia may lead to fines and penalties for the offending company.
Employing in Saudi Arabia
Provisions for employee protections and workers’ rights are spelled out in the Saudi Arabian Labor Law of 2006 and are enforced jointly by the Ministry of Labor and the Ministry of Human Resources and Social Development.
Employees in Saudi Arabia enjoy protection against discrimination based on age, religion, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Saudi Arabia.
Minimum wage
The monthly minimum wage in Saudi Arabia is fixed at 4,000 SAR or roughly $1,066.
Payroll cycle
Wages can either be paid on a weekly or monthly basis.
Effortless HR in Saudi Arabia: Take the Tour
Competitive benefits package in Saudi Arabia
At Remote, we’re passionate about helping you craft the best possible employee experience for your team. We are leading the way in developing globally competitive benefits programs. This means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive, and your company has the localized expertise needed to attract and keep the best global talent.
Our benefits packages in Saudi Arabia are tailored to fulfill the local needs of employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Saudi Arabia
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Saudi Arabia.
| 2% | Social Insurance Tax for Non-Saudi Expats(effective on wages ranging from 1,500 SAR to 45,000 SAR) |
| 12% | Social Insurance Tax for Saudi Nationals (effective on wages ranging from 1,500 SAR to 45,000 SAR) |
Types of leave
Employees with up to five years of service are entitled to 21 days of annual vacation while workers with more than five years of employment can take up to 30 days off annually.
Employment termination
Termination process
Saudi Arabian labor law provides a lot of leeway for employers to let workers go, but compensation must be provided if a termination is unjustified.
Notice period
Notice periods range from 30 days for fixed-term contracts, to 60 days for indefinite-term contracts.
Severance pay
Employees who’re being let go without just cause are entitled to 15 days’ pay for each of the first five years of employment plus a month’s pay for each subsequent year.
Probation periods
Probation periods are typically limited to 90 days but can last for up to 180 days with the consent of both parties.
Fair Pricing in Saudi Arabia
Top features
Only pay for contractors you actively work with
Work with contractors in 200+ countries
Create, edit, and sign tailored, localized contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
Payroll
Consolidate your multi-country payroll
$50
per employee/month
Top features
Reduce costs by centralizing payroll management
Ensure local compliance for every country
Direct support from in-house local payroll experts
Accurate, on-time, compliant payroll to level-up your employee experience
Tax and labor authority reporting handled for you
Top features
Guided onboarding and offboarding
Employee profile and document management
Time and attendance (time off and tracking)
Expense management and reimbursement
Employee self-serve on the platform and mobile app