Saudi Arabia


Employment contract must be written in Arabic.
Contracts can either be fixed or indefinite, however for non-locals indefinite contracts are only valid as long as their visas are valid.


Salaries can be paid monthly, semi monthly, or weekly.

HR & Labor

Working Hours: Full time employment is considered 48 hours weekly, and 8 hours daily, with an exception of the month of ramadan during which working days are 2 hours shorter.
Workers a prohibited from working more then 11 hours daily, and must receive a break of 30 minutes minimum after 5 consecutive hours of working. Overtime is paid at 150% of regular wages. Working Age: Employers cannot hire minors bellow the age of 15.


In order to work, employees must have approval from The Ministry of Labor and The Ministry of Interior, with the help of a sponsor.
Female expatriate employees are restricted to the fields of health, education and transportation.


Employees are entitled to 13th month salary on Eid Al Fitr, marking the end of Ramadan.

2018 Update

Effective January 1, VAT is applicable at a standard rate of 5%.

Minimum wage

There is no official minimum wage.

Public Holidays

June 15: Eid-al-Fitr (end of Ramadan)
June 16-21 Eid-al-Fitr Holiday
August 22: Eid-al-Adha (Feast of Sacrifice)
August 24-25: Eid-al-Adha Holiday
September 12: Muharram (Muslim New Year)
September 23: Saudi National Day
November 21: Prophets Birthday

Pension fund

Employer contribute 9% of employees wages to pension fund.

Employee contributes 9% of their wages to the pension fund.

Sick Days

Employees are entitled to 30 days paid sick leave annually, and can also receive an additional 60 days medical leave with for 75% of salary.

Severance payments

At the end of an employment relationship employers are expected to pay end-of-service benefit equal to:
- Half of monthly wages for each of the first 5 years of employment
- One monthly wage for each additional year employed.
This calculation is on a basis of the last monthly salary.

If an employee resigns, they are entitled to:
- 1/3 of the benefit for the first 2 years of employment.
- 2/3 of the benefit for 2-10 years of employment.
- Full benefit for 10+ years of employment.

Advance notice

For indefinite contracts, employees must provide notice of 60 days if employee is paid monthly, and 30 days otherwise.

Termination procedure

Before terminating an employee, employers must issue two warning letters. Following, either two months notice, or two months notice pay must be provided.

Vacation Days

For the first 6 months of employment, workers are not entitled to paid leave. Following that period, until the 5th year of employment, employees are entitled to 21 calendar days of vacation, after 5 years employees are entitled to 30 days.

Probation Period

Probation periods are required, and may be up to 90 days with an extension to 180 if agreed to in writing.

Income Tax

There is no income tax.

Social Security

Social security contributions for both employers and employees consist of:
- Unemployment Insurance: 1% of wages.
- Pension Fund: 9% of wages.

Female Workers

Woman are obligated to work separately from men, and have separate facilities. There are many restrictions of the fields that woman may work in such as those that may be hazardous. Additionally, there are regulations on numerous sectors such as factories, retail and kitchens.


Employers are obligated to accommodate the needs of Muslim workers (such as for prayer facilities). Non-Muslims are prohibited from working in Mecca and parts of Medina.


VAT is 5% standard rate.