Countries/Saudi Arabia/In-country employment
Middle East & Africa · In-country employment
In-country employment in Saudi Arabia
Saudi hiring is a labour-law, GOSI, and Saudisation problem at the same time. Nitaqat ratios, WPS (Mudad), and end-of-service benefits sit beside the monthly salary.
There is generally no personal income tax on salary. The employer cost is GOSI, localisation, and end-of-service accrual — plus work-permit sponsorship for expatriates.
Plan an in-country hire- ✓
Saudi employment contract — The person is employed under the Labour Law, with the contract registered on Qiwa — not as an unpaid visitor.
- ✓
You still manage — Your managers set the work. We run the contract, GOSI, WPS, and payroll.
- ✓
No company first — Start the hire through a licensed local employer that can sponsor and file. Convert later if you open your own entity.
Statutory stack
What sits on top of wages
GOSI rates depend on whether the employee is Saudi or expatriate, and on the Saudi employee's GOSI registration date. This is not a salary survey.
| Item | 2026 rule |
|---|---|
| GOSI — Saudi (legacy, registered before 3 July 2024) | Employer 11.75% / employee 9.75% (combined 21.5%) on contributory wage up to SAR 45,000 / month |
| GOSI — Saudi (new system, from 1 July 2026) | Employer 12.75% / employee 10.75% (combined 23.5%) for nationals registered on or after 3 July 2024 |
| GOSI — expatriates | Employer 2% occupational hazards only |
| End-of-service benefit | Separate Labour Law lump sum (Arts. 84–87); GOSI does not replace it |
| Personal income tax on salary | Generally none |
Role salary ranges are not on this page. Open the 2026 salary guide when those figures are published.
Choose a path
In-country employment vs incorporating
A Saudi company is the usual long-term employer because Nitaqat and visa sponsorship attach to the entity. In-country employment is for a first seat that must start before that entity exists.
| In-country employment | Your own entity | |
|---|---|---|
| When to use it | A first country manager or technical hire before your Saudi entity and Nitaqat file exist. | When you want your own Saudi company as employer and visa sponsor. |
| Who employs | A licensed local employer holds the Qiwa contract and GOSI file. Your managers direct the work. | Your Saudi company registers on Qiwa, GOSI, and Mudad in its own name. |
| Saudisation | The employing vehicle's Nitaqat band still has to support the hire, especially for expatriate sponsorship. | Your own Nitaqat classification will constrain how many expatriates you can sponsor. |
Onboarding
From briefing to first payday
Qiwa contract registration, GOSI, and — for expatriates — visa/iqama steps set the calendar. Budget weeks.
01
Briefing
Role, Saudi vs expatriate, sector Nitaqat expectations, and start date.
02
Contract
Written Labour Law contract registered on Qiwa, with wage components GOSI will read (basic plus housing).
03
GOSI and WPS
GOSI registration and Wage Protection System setup through Mudad.
04
First payday
Salary paid through WPS, GOSI remitted on the contributory wage.
05
Convert or close
Move the person onto your Saudi entity, or terminate with EOSB under Arts. 84–87.
Compliance
Five points that change the hire
01
Nitaqat / Saudisation
Sector and headcount bands set how many Saudi nationals you must employ. Falling a band blocks expatriate visa services.
02
WPS is mandatory
Wages have to be paid through the Wage Protection System. Off-cycle cash is an inspector finding.
03
GOSI wage base
Contributions are generally on basic salary plus housing, capped at SAR 45,000 a month. Split packages to dodge GOSI are a dispute waiting to happen.
04
End-of-service is separate from GOSI
Paying GOSI every month does not reduce the Labour Law gratuity due on exit.
05
Expatriate sponsorship
Work visa, iqama, and a job title that matches the contract. A business visit is not employment.
Questions
FAQ
- Can a foreign company hire in Saudi Arabia without a Saudi company?
- Not as visa sponsor on its own file without a local employing vehicle. In-country employment uses a licensed local employer that can register the Qiwa contract and GOSI, while your managers direct the work.
- Is there personal income tax on salary?
- Generally no. Employer cost is GOSI, Saudisation, WPS operations, and end-of-service accrual.
- What is the GOSI employer rate in 2026?
- For Saudi nationals on the new system, 12.75% from 1 July 2026; for legacy registrations before 3 July 2024, 11.75%. For expatriates, 2% occupational hazards. Contributions cap at SAR 45,000 of monthly contributory wage.
- Can we convert later?
- Yes, subject to Nitaqat and sponsorship transfer rules. When your Saudi entity is ready, we move the contract and close the in-country assignment.
Labour-law detail for Saudi Arabia sits on the hiring guide.
Other markets
Other in-country employment 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 contracts; Arts. 84–87 end-of-service
- GOSI / New Social Insurance Law — 2026 rates by registration date; SAR 45,000 ceiling
- MHRSD — Nitaqat / Saudisation and Wage Protection System (Mudad)
Plan an in-country hire in Saudi Arabia
Tell us the city, the role, and when they need to start.