The Hardest Market ยท Saudi Arabia
Saudi Arabia's HR data
The rules and costs of employing people in Saudi Arabia (Riyadh), from official sources, in English and Japanese.
Employment rules
| Statutory annual leave | 21 days (30 after 5 years) |
|---|---|
| Public holidays (2026) | 10 days |
| Notice of dismissal | 60 days from employer, 30 from employee (indefinite contract) |
| Severance required by law | End-of-service award: 0.5 month/year (first 5 years), 1 month/year after |
| Typical negotiated exit | No official benchmark; art. 77 minimum for unjustified termination: 15 days/year, at least 2 months |
| Probation | Up to 180 days |
| Working hours | 8/day, 48/week (6/36 in Ramadan) |
| How hard is dismissal? | Moderate: legitimate reason and notice, or pay statutory compensation |
Employer contributions
| GOSI occupational hazards insurance | 2% |
|---|---|
| End-of-service award (accrual) | 4.17% |
Employee contributions
None
Take-home pay and employer cost by monthly salary
| Monthly salary | Employee contributions | Income tax | Take-home | Employer cost |
|---|---|---|---|---|
| SAR 12,000 | SAR 0 | SAR 0 | SAR 12,000 | SAR 12,680 |
| SAR 20,000 | SAR 0 | SAR 0 | SAR 20,000 | SAR 21,133 |
| SAR 35,000 | SAR 0 | SAR 0 | SAR 35,000 | SAR 36,983 |
| SAR 60,000 | SAR 0 | SAR 0 | SAR 60,000 | SAR 63,400 |
A single expatriate (non-Saudi) employee in Riyadh on an indefinite-term contract under the Saudi Labour Law, no dependants, salary paid evenly as 12 monthly payments with no bonus. The main white-collar hiring case for a foreign employer is an expatriate, so this is modelled instead of a Saudi national: expatriates pay no social insurance and no income tax. Salary structure assumed: basic pay 60% of total monthly salary, housing allowance 15% (25% of basic), other allowances 25%. These shares are an assumption, not a legal rule. The employer pays GOSI occupational hazards at 2% of the contributory wage (basic + housing, capped at SAR 45,000 a month) and accrues the end-of-service award (half a month's wage per year for the first 5 years), taken here on basic pay only (60%). 2026 calendar year.