Employment contract
A person working for wages under an employer’s management or supervision falls within the Labor Law analysis; a “consultant” or “outsourcing” label does not automatically remove coverage. Arabic controls statutory employment records, and private-sector contracts are electronically documented through Qiwa. A non-Saudi contract must be written and fixed-term; if no term is stated, the work-permit term applies. From 15 April 2026, only electronically documented Qiwa contracts count Saudi employees in Nitaqat. Role, wage, hours, term, probation, location, benefits and exit terms must match permits, payroll and reality.
Probation
Amendments effective in 2025 require probation to be expressly stated in the contract and cap the total at 180 days; Eid al-Fitr, Eid al-Adha and sick leave are excluded. Either party may terminate during probation unless the contract reserves that right to one party, generally without compensation or end-of-service award. Older HRSD pages and regulations still show “90 days then written extension to 180”; do not present that superseded structure as the sole current rule.
Hours, rest & overtime
HRSD’s current consolidated English Labor Law states general limits of nine hours/day or 45/week, reduced for Muslims in Ramadan to seven/day or 35/week, and generally two paid weekly rest days, one Friday; older knowledge pages still show 8/48, 6/36 and one rest day. Before scheduling, reconcile the current Arabic law, approved work rules and HRSD evidence. Ordinarily do not work more than five consecutive hours without a break of at least 30 minutes or remain at the workplace over 12 hours. Overtime is the hourly wage plus 50% of the basic-wage hourly amount; with employee consent, paid compensatory leave may apply under the regulations, and holiday work is overtime.
Minimum wage by region
Saudi private employment has no single universal minimum wage covering every worker and expatriate. SAR4,000 is the general Nitaqat wage-counting threshold for one Saudi employee; SAR3,000 counts 0.5 and below SAR3,000 counts zero—not a universal wage floor. Occupation-specific localisation can impose higher counting thresholds: for example, marketing roles use SAR5,500 for the 60% localisation rule from 19 April 2026. Check activity, size, occupational group, location and the latest sector decision.
Salary & talent supply
Nitaqat, work-permit skill classification and occupation-specific localisation thresholds are not market offers. Salary ranges should disclose city, occupation code, skill tier, sector, seniority, sample period and basic/housing/transport/total-cash scope. Calibrate demand and supply with Jadarat and HRDF/HRSD labour data plus dated vacancies; do not present one commercial-platform figure or a “Saudi average wage” as the role median.
Payroll, payslip & payment
Monthly-paid workers are paid at least monthly, with other categories following statutory cycles. Pay in Saudi riyals through auditable bank wage files and the Wage Protection System. Wages, allowances, overtime, holidays, deductions and net pay should reconcile to the Qiwa contract, attendance and Mudad/WPS file; wages may not be withheld without judicial or statutory basis. On employer-initiated exit settle generally within one week, or within two weeks when the employee ends the relationship, including unused leave, end-of-service award and lawful deductions.
PIT withholding & social insurance
Saudi employment wages generally have no personal income tax, but payroll compliance is not zero-cost. Saudi employees with pre-3 July 2024 coverage generally retain 9%+9% annuities and 0.75%+0.75% SANED, plus 2% employer occupational hazards: 11.75% employer and 9.75% employee. New-system employees with no prior coverage phase annuities up by 0.5 percentage point per side each year; from 1 July 2026 they are 10% each, producing 12.75% employer and 10.75% employee including SANED/hazards, ultimately reaching 11% annuities each. Expatriates generally carry employer-paid 2% hazards only; confirm bases, ceilings and GCC exceptions from the GOSI invoice.
Employer-cost calculator scope
The current cost calculator is a budget estimate: it approximates post-July-2026 rates by nationality and old/new GOSI cohort, using basic plus housing with a SAR45,000 ceiling; expatriates use 2% hazards only. It does not model each person’s contribution history, GCC extension protection, SANED eligibility, hazard adjustments, recruitment/visa/work-permit levies, medical insurance, housing/transport, overtime, leave, end-of-service or Nitaqat cost. It is not a GOSI or payroll filing result.
Annual leave
Provide at least 21 days’ annual leave with pay in advance, increasing to at least 30 after five continuous years; notify the employee at least 30 days ahead. Leave cannot be waived for cash during employment. It may move to the next year with approval; business need can postpone up to 90 days, with further delay requiring written consent and never beyond the following year. Settle unused balance on exit and do not offset sick leave, Eid, official holidays or weekly rest.
Public holidays & overtime
The private-sector baseline includes four days for Eid al-Fitr, four for Eid al-Adha, one National Day and one Founding Day, with dates set by Umm Al-Qura and current HRSD notices. Overlap with weekly rest, annual leave or sick leave follows different compensation rules, while National/Founding Day overlapping Eid generally adds no substitute. Holiday work is overtime. Do not automatically import every public-service or bank-calendar red day into private employment.
Family & medical leave
Certified sick leave is generally 30 days full pay, then 60 days at three-quarters, then 30 unpaid in a year. Current Article 151 gives 12 weeks’ fully paid maternity leave with six mandatory post-birth weeks and an optional extra unpaid month; a sick/disabled child needing care adds one paid month and one optional unpaid month. Marriage gives five days; childbirth gives three within seven days; death of spouse/ascendant/descendant gives five and sibling death three. GOSI maternity compensation has separate conditions such as 12 contribution months in 36 and must not be confused with the employer’s leave obligations.
Statutory & market benefits
Statutory wages, suitable housing or cash allowance, commuting transport or allowance, leave, overtime, GOSI/hazards and mandatory health protection are not optional benefits. A 13th-month payment, bonus, enhanced private medical, dental, meals, education, flights and long-term incentives are not universally statutory, but contract, work rules or established practice can make them wage or payable. For expatriates separately price recruitment, authentication, work permit, Iqama, levies, insurance, return travel and dependants.
Termination & disputes
Termination must map to fixed-term expiry, written mutual agreement, a statutory event, legitimate reason or a specific Article 80/81 route. For indefinite monthly-paid contracts, current amendments distinguish at least 30 days’ written notice by the employee and 60 by the employer; other pay cycles generally use at least 30. A resignation ordinarily takes effect after 30 days without response; the employer may defer up to 60 days by written business reason, and the employee can generally withdraw within seven days. Invalid-reason compensation follows the contract or Article 77. End-of-service is generally half a month per year for the first five years and one month thereafter, with resignation fractions and statutory full-award exceptions calculated case by case.
Contractor classification
Employee versus contractor turns on real subordination and management/supervision: who controls time, place, method and price, continuity for one business, tools, substitution, profit/loss risk and organisational integration. An invoice, freelance permit or “consultant” contract does not automatically override employment facts; sham outsourcing can trigger wage, overtime, leave, GOSI, injury, permit and localisation arrears. Genuine labour-supply or HR services must use an HRSD-licensed provider within its licence scope.
Foreign workers
A company, offer, business visit, MISA/CR or draft Qiwa contract does not authorise work. A non-Saudi must enter lawfully, hold a written fixed-term contract with the genuine employer, and obtain HRSD work permission and Iqama matching employer, occupation and location before starting; the work permit does not replace professional/sector licensing. Since 2025, permits are automatically classified high-skilled, skilled or basic using occupation, wage, qualifications/experience, accreditation and age. Also check reserved roles, 2026 Nitaqat, occupation-specific localisation, transfer and exit/absence status.
Recruiting channels
Use official employment channels such as Jadarat to test Saudi candidate supply and design hiring around 2026 Nitaqat, occupation-specific localisation and Qiwa contract documentation. Advertising must not weaken equal opportunity through race, colour, gender, age, disability, marital status or similar grounds; role, wage and location should match the final contract/permit. Before using search, HR-service or cross-border recruitment firms, verify HRSD licence, service category, validity, candidate fees, data handling and replacement/refund duties; do not claim an unsupported “best channel”.
Retirement age
Reaching the applicable Social Insurance Law retirement age can end the contract unless both parties agree to continue, but the age is not universally 60. New-system persons with no pre-3 July 2024 contribution history have statutory retirement at Gregorian age 65; affected existing-system contributors transition between 58 and 65 under the 2024 schedule, while unaffected cohorts retain their prior regime. Query the individual’s GOSI cohort before action; age alone does not automatically close payroll, permits or continued employment.
Employment compliance calendar
Before hire: activity/occupation localisation, Nitaqat, Qiwa contract, permit skill tier, GOSI, medical and WPS master data. Monthly: attendance, the 45-hour/Ramadan baseline, overtime, wage file, GOSI invoice, expatriate levies and receipts. At change/exit: contract notice, resignation clock, final wages, end-of-service, unused leave, GOSI, Qiwa, work permit and Iqama. Annually review work rules, Eid/National/Founding Day, leave, GOSI cohort, 2026–2028 Nitaqat targets, occupation decisions, skill classification, licences and insurance, retaining owner, deadline, receipt and recovery for every control.