Qiwa registration
Employment contracts have to be registered on Qiwa. An unsigned English offer is not the labour contract.
Countries/Saudi Arabia/Hiring guide
Middle East & Africa · Hiring guide · 2026
Hiring in Saudi Arabia: labour law and payroll
This page is the labour-law and payroll stack for multinational employers hiring in Saudi Arabia. It is not a salary survey.
In-country employment is how you run this stack without your own Saudi company, subject to sponsorship and Nitaqat constraints.
To hire without incorporating first, use in-country employment in Saudi Arabia.
Contracts
Contracts and probation
Probation
Probation is generally up to 90 days, extendable to 180 days if the contract allows and both parties agree. Either party may end the contract during probation under the statutory rules.
Fixed-term vs indefinite
Fixed-term contracts are common for expatriates tied to a work permit. Expiry and renewal have to match the iqama file.
Hours
Working time and overtime
Hours
Generally 8 hours a day or 48 hours a week, reduced during Ramadan for Muslim employees. Weekly rest is statutory.
Overtime
Overtime is generally paid at an additional 50% of the basic wage. Confirm the contract and any sector rules.
WPS
Wages have to be paid through the Wage Protection System (Mudad). Off-cycle cash is an inspector finding.
Wage floor
Minimum wage, 2026
GOSI rates depend on nationality and the Saudi employee's registration date. There is generally no PIT on salary. These are not market salaries.
| Rule | Figure |
|---|---|
| GOSI — Saudi, legacy (pre-3 July 2024) | Employer 11.75% / employee 9.75% |
| GOSI — Saudi, new system from 1 July 2026 | Employer 12.75% / employee 10.75% for nationals registered on or after 3 July 2024 |
| GOSI — expatriates | Employer 2% occupational hazards |
| Contributory-wage cap | SAR 45,000 / month (basic plus housing) |
There is no general statutory monthly minimum wage that replaces Nitaqat salary floors used for Saudisation scoring. Confirm the sector Nitaqat guide and any ministry wage floor for the occupation before you issue an offer. EOSB under Articles 84–87 is extra to GOSI.
Exit
Terminating and offboarding
End-of-service benefit
A lump sum under Articles 84–87 based on last wage and length of service. GOSI contributions do not offset it.
Notice
Notice depends on whether the contract is definite or indefinite. Put the period in the Qiwa contract.
Iqama and exit
For expatriates, final exit or transfer of sponsorship has to match the termination. Holding a passport is not a lawful process.
Questions
FAQ
- Is there income tax on salary in Saudi Arabia?
- Generally no personal income tax on employment earnings. Employer cost is GOSI, Saudisation, WPS, and end-of-service accrual.
- What is the GOSI rate in 2026?
- For new-system Saudi employees, employer 12.75% from 1 July 2026; for legacy Saudi registrations, 11.75%. Expatriates: 2% occupational hazards. Cap SAR 45,000 a month.
- Does GOSI replace end-of-service pay?
- No. EOSB is a separate Labour Law lump sum.
- What is Nitaqat?
- The Saudisation programme that sets Saudi-national headcount (and wage) ratios by sector and size. Missing the band blocks expatriate visa services.
Other markets
Other hiring guide pages
Reviewed 11 September 2026
This is a hiring briefing for multinational employers, not legal advice. Statutory rates move by city, province, and sector. Confirm the place of work before you issue an offer.
Sources
- Saudi Labour Law — Qiwa; hours; Arts. 84–87 EOSB
- GOSI / New Social Insurance Law — 2026 rates by registration date
- MHRSD — Nitaqat and Wage Protection System
Hire in Saudi Arabia
Tell us the city, the role, and whether this is a local contract or a search.