Saudi Arabia
Hire Employees & Contractors

Saudi Arabia

Compliantly hire your distributed team members in

Saudi Arabia

Person working on laptop

Hiring in

Saudi Arabia

isn't so simple. Borderless can help.

To hire new employees in

Saudi Arabia

, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in

Saudi Arabia

while staying fully compliant with local laws and compliance.

Primary Language



Saudi riyal (﷼, SAR)

Payroll Frequency


Public Holidays

9 days

Employer Taxes

12 - 14%

Cost of Living Index

50.6 (2023)

Statutory Leave

21 days

Sick Leave

First 30 days fully paid

Maternity Leave

10 weeks

Important: Risks of misclassification

In many countries like

Saudi Arabia

, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

The minimum wage in Saudi Arabia is SAR 4,000 per month.

Overtime Pay

The maximum overtime is 11 hours per day and 48 hours per week. Rates are generally determined through employment contracts. The average rate is 150% times the hourly salary.

Additional Pay

There is no additional pay detail for Saudi Arabia.

Payroll Cycle

For all Borderless customers, payments will be made in monthly instalments by the last day of each month.

Employer Costs & Taxes

  • 2%: Employer contribution to occupational hazard for non-Saudi employees

For Saudi employees:

  • 9%: Employer contribution to social insurance (pension)
  • 2%: Employer contribution to occupational hazard
  • 1%: Employer contribution to unemployment insurance
  • 9%: Employee contribution to social insurance
  • 1%: Employee contribution to unemployment insurance
  • 24%: Total estimated cost

Employee Costs & Taxes

There are no individual income taxes in Saudi Arabia.

Employment Information

Termination Process

Termination varies the employment agreement and the reason behind dismissal. If an employer cannot provide the cause of dismissal with a lawful reasoning, the employee is entitled to compensation. If an employee resigns, the employer must issue their final wages immediately.

Notice period

Notice periodThe notice period varies on the type of employment contract:

  • On average, notice is 30 day
  • For monthly employment contracts, notice is 60 days

Probation Period

Generally, probation periods are 90 days and have a maximum of 180 days. These periods vary on the type of employment contract established.

Severance Details

Severance is entitled based on the reason for dismissal.

  • 1/2 months wages for the first five years and one months wages for the following
  • 1/3 wages for employment no less than two to five years
  • 2/3 wages for employment from five years to ten years

It is not mandatory when the employee is dismissed due to assault, negligence, misconduct, dishonesty, or absent for more than 20 days a year

Benefits of working in a country abroad

Borderless Benefits Packages in

Saudi Arabia

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in

Saudi Arabia

Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo