Middle East

Saudi Arabia

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Employer of Record (EOR) in Saudi Arabia

What you'll learn

  • Country Introduction
  • Employment Terms
  • Minimum Wage and Working Hours
  • Statutory Leave Laws
  • Termination Process
  • Additional Information
Saudi Arabia Introduction

Saudi Arabia is a country in the Arabian Peninsula bordered by Jordan, Iraq, Kuwait, Qatar, the United Arab Emirates, Oman, and Yemen. Saudi Arabia is considered both a regional and middle power with the largest economy in the Middle East. The country has a very high Human Development Index, and offers tuition-free university education, no personal income tax, and a free universal health care system.

Employment Terms

The minimum wage is SAR 4,000 per month, and a standard workweek is 48 hours at 8 hours per day (6 days per week). Overtime is paid at 150% of the regular rate.

Types of Leave

Parental Leave

Pregnant employees are entitled to 10 weeks of paid maternity leave starting 4 weeks before the due date. The payment during the leave depends on the seniority, paid between 50%-100% of the salary by the employer. The father/partner are entitled to 3 days of paid paternity leave after the birth.

Sick Leave

Employees are entitled to 120 days of sick leave per year, paid between at 100% of the salary for 30 days, 1/3 of the pay for days 30-90, then unpaid for the last 30 days.

Paid Leave

Saudi Arabia has 9 public holidays, and employees are entitled to at least 21 days of paid time off (30 days after finishing 5 years of service). Employees can also qualify for bereavement leave, marriage leave, or pilgrimage leave.

Termination Process


The termination process depends on the employment contract or collective agreement and reason for termination. Terminations must be for just cause or compensation will be owed.

Notice Period

The notice period depends on the type of contract in place, but a standard notice period is 15-30 days.

Severance Pay

The amount of severance pay is depends on the employment contract and the amount of years worked at the company. It ranges from 0.5-1 month of wages per year of service.

Additional Information


Saudi Riyal (SAR)
Capital City:
36.4 Million
Cost of Living Rank:
VAT (Valued Added Tax):
Employer TaxES

★  12% - Social Insurance

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Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.


Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.


Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

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How Remofirst employs in Saudi Arabia

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Saudi Arabia get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Saudi Arabia are paid on time in Saudi Riyal (SAR). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Saudi Arabia, they can speak with our customer support team to get answers from our team of experts.