Saudi Riyal
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9.00% - Social Insurance
1.00% - Unemployment Insurance
2.00% - Occupational Hazard
9.00% - Social Insurance
1.00% - Unemployment Insurance

Minimum Wage


There is no official minimum wage in the private sector. In the public sector, minimum monthly wages are 3,000 SAR.

Working Hours


Full time employment is considered 48 hours weekly, and 8 daily. During Ramadan, daily hours are shorened to 6 equaling 36 weekly hours. *No more than 5 consecutive hours may be worked without a 30 minute break for rest, meals, or prayer; or 1.5 hours consecutively during working hours.


Overtime for additional hours, work on day of rest, and official holidays is paid at 150%.



Standard rate of 5%.

Mandatory Benefits

Pension Fund

Employer contribute 9% of employees wages to pension fund. Employee contributes 9% of their wages to the pension fund. Minimum earnings of 1,500 SAR, and ceiling of 45,000 SAR.

Social Security

Social security contributions for both employers and employees consist of: - Social Insurance: 9% of wages. - Unemployment Insurance: 1% of wages. Employer additionally contributes 2% to occupational hazard fund (min of 900 SAR, and max of 45,000 SAR).


Payroll Cycle

Daily wages are paid weekly, and salaries are paid monthly.


Termination Process

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

Advance Notice

For indefinite contracts, employees must provide notice of 30 days if employee is paid monthly, and 15 days otherwise.

Severance Pay

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. 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. This calculation is on a basis of the last monthly salary.