--- title: "Hiring in Saudi Arabia 2026 | Employer of Record Guide" description: "Hire in Saudi Arabia through Teamed's EOR. 11.75% GOSI employer rate for Saudi nationals, 21 days statutory leave, no income tax, and maternity leave extended to 12 weeks by the 2025 Labour Law amendments. The Saudi Arabia guides, one per layer." canonical: https://www.teamed.global/country-hiring-guides/saudi-arabia --- Saudi Arabia · Country overview Served by Teamed via a Saudi Arabia-licensed EOR entity # What do you need to know to hire in *Saudi Arabia*? Saudi Arabia levies no personal income tax on employment, GOSI employer contributions run at 11.75% for Saudi nationals and 2% for expatriates, and the February 2025 Labour Law amendments raised maternity leave to 12 weeks and doubled the minimum notice period to 60 days. Each guide below takes one layer. Last reviewed 13 June 2026 · Saudi Arabia guide ## How does Teamed handle Saudi Arabia hiring for you? Teamed becomes your legal [employer of record](/lp/employer-of-record) in Saudi Arabia for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. Payroll, contracts, and the full Saudi Labour Law stack run on **one platform**. **Real HR and legal experts** manage every Saudi hire, from the Qiwa-registered employment contract to the final End of Service Gratuity calculation. **An actual person**, not a chatbot or a pooled queue, handles your Saudi team alongside EOR, contractor onboarding, and entity payroll on **one platform**. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice. An employee who converts from a fixed-term to indefinite arrangement keeps their record, and that same employee can **graduate** from EOR to your own Saudi entity without re-onboarding. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month the model flips. EOR is the right model for a first Saudi hire, **until it isn't**. Three things you won't find on any other Saudi Arabia EOR guide - **Saudi Arabia has no personal income tax on employment.** Saudi nationals and expatriate workers alike pay zero income tax on their salaries. That changes the employer cost conversation entirely compared with most of Teamed's other EOR markets. [The tax and payroll guide](/country-hiring-guides/saudi-arabia/tax-and-payroll) covers GOSI, VAT, and corporate tax obligations in full. - **GOSI rates differ sharply for Saudi nationals versus expatriates.** Saudi national employees attract a 11.75% GOSI employer contribution. Expatriate employees attract only 2% for occupational hazards, with no pension or unemployment (SANED) coverage. Most competitor pages quote a single figure and miss the dual-rate structure entirely. - **The February 2025 Labour Law amendments changed three things buyers rely on.** Maternity leave extended from 10 to 12 weeks. Minimum employer notice for indefinite contracts doubled to 60 days. The maximum probation period was restructured to allow a longer initial period from the outset. Pages still citing the pre-2025 rules are out of date. Answer.cite this Hiring in Saudi Arabia carries no personal income tax on wages. The employer cost above gross salary comes primarily from GOSI social insurance: 11.75% for Saudi nationals and 2% for expatriates. Payroll runs monthly under the Wage Protection System. Statutory annual leave is 21 days in the first five years of service, rising to 30 days after that. There are 10 official public holidays in 2026. The February 2025 amendments to the Saudi Labour Law reshaped maternity leave, notice periods, and probation. These guides reflect the current law. This page is the map. Each guide below is the detail. At a glance · Saudi Arabia SAR · Arabic · Monthly payroll Currency SAR GOSI (Saudi nationals) 11.75% employer / 9.75% employee retirement, hazard, and SANED GOSI (expatriates) 2% employer only occupational hazard only, no pension Personal income tax 0% no income tax on employment Annual leave 21 days first 5 years; 30 days after 5 years Public holidays 10 2026; lunar calendar dates confirmed officially Minimum notice 60 days employer to employee, indefinite contract 13th salary No not a statutory requirement in Saudi Arabia ![A wide illustration of Riyadh at golden hour: the Kingdom Centre Tower rising above the skyline, palm-lined King Fahd Road stretching into the distance, and a warm amber sky above the desert city.](/images/country-guides/saudi-arabia-hiring.webp) Saudi Arabia · per employee · per month · flat $ 599 Zero FX. No setup fees. 48-hour onboarding. The price your finance team can forecast against without an asterisk. Zero FX Fixed No setup fee No exit fee 48-hour onboard ## How much does it cost to hire an employee in Saudi Arabia in 2026? There is no personal income tax in Saudi Arabia, so the employer cost above gross salary is narrower than in most EOR markets. GOSI adds 11.75% for Saudi national employees and 2% for expatriates. Both sit on top of salary. The absence of income tax changes the cost model. For a Saudi national, the employer pays GOSI at 11.75% (covering retirement pension, occupational hazards, and SANED unemployment). For an expatriate, the employer pays only 2% for occupational hazards. No pension and no unemployment (SANED) cover applies to expatriates. Saudi Vision 2030 Nitaqat quotas add a Saudization cost layer that sits outside the pure payroll calculation. Teamed's Saudi Arabia price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits passed through at cost on every invoice. The full breakdown with worked examples sits in the cost guide. [Read the full Saudi Arabia cost breakdown](/country-hiring-guides/saudi-arabia/cost-breakdown) ## Do you need a Saudi entity to hire employees in Saudi Arabia? No. An Employer of Record runs Saudi payroll and Qiwa-registered contracts from day one. Your own Saudi entity becomes cheaper than EOR somewhere around 5 to 8 employees, depending on salary and Saudization requirements. Forming a Saudi limited liability company requires Foreign Investment License approval from the Ministry of Investment (MISA), commercial registration, and Qiwa platform enrollment. Setup takes several months. An [Employer of Record](/lp/employer-of-record) is faster and cheaper at low headcount, and Teamed runs Saudi payroll, contracts, and GOSI filings from day one. The crossover point depends on Saudi salary levels and your Saudization quota obligations. For most international tech roles it lands around 5 to 8 employees. At that headcount your own entity's total cost crosses below the EOR fee. Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Saudi entity on **one platform** under Teamed's Graduation Model, with tenure preserved. [Read the full Saudi Arabia EOR vs entity guide](/country-hiring-guides/saudi-arabia/eor-vs-entity) ## What changed in Saudi Arabia employment law in 2025 and 2026? The February 2025 Labour Law amendments came into force on 18 February 2025. They extended maternity leave to 12 weeks, doubled employer notice to 60 days, introduced 3 days of paid paternity leave, and restructured the maximum probation window. The 2025 amendments are the most significant change to the Saudi Labour Law in a decade. Maternity leave rose from 10 to 12 weeks at full pay. Employer notice for terminating an indefinite contract doubled to 60 days written notice. Paid paternity leave of 3 days was introduced for the first time. The Qiwa digital platform now requires employment contracts to be registered and verifiable by MHRSD. Working time rules remain at 48 hours per week standard, reduced to 36 hours per week during Ramadan. Maximum sick leave is 120 days per year, split across three pay tiers. The hiring guide covers the day-one obligations and Qiwa registration in full. [Read the full Saudi Arabia hiring guide](/country-hiring-guides/saudi-arabia/hiring-guide) ## What benefits must you provide Saudi Arabia employees in 2026? The statutory floor is 21 days of paid annual leave, up to 30 days of full-pay sick leave, and 12 weeks of maternity leave at full pay. Annual leave and public holidays are counted separately in Saudi Arabia. Annual leave is 21 days in the first five years of service and rises to 30 days after five consecutive years with the same employer. Saudi Arabia counts annual leave and public holidays separately. There are 10 official public holidays in 2026, covering Foundation Day, Eid al-Fitr, Eid al-Adha, and National Day. Islamic holiday dates are confirmed by official moon sighting each year. Sick leave totals a maximum of 120 days per year. The first 30 days are at full pay. The next 60 days are at a reduced rate. The final 30 days are unpaid. Maternity leave is 12 weeks at full pay. Paternity leave is 3 days. The benefits guide covers each entitlement and the employer obligations under the 2025 amendments. Read the full Saudi Arabia benefits guide ## What are payroll taxes in Saudi Arabia in 2026? Saudi Arabia levies no personal income tax on employment income for any employee, Saudi national or expatriate. GOSI is the main payroll charge: 11.75% employer plus 9.75% employee for Saudi nationals, and 2% employer only for expatriates. The absence of income tax simplifies payroll considerably. GOSI is the primary employer obligation. Saudi national employees attract the full GOSI suite: 11.75% employer (covering 9% retirement pension, 2% occupational hazards, and 0.75% SANED unemployment) and 9.75% employee (covering retirement and SANED). Contributions are calculated on basic salary plus housing allowance, capped at SAR 45,000/month. Expatriate employees attract employer GOSI at 2% for occupational hazards only. Employees hired from 3 July 2024 onward fall under the new GOSI contribution system, with rates scheduled to rise in annual increments each July. All payroll must flow through the Wage Protection System (WSPS). The tax and payroll guide sets out every contribution band, the GOSI salary cap, and the WSPS filing obligations. [Read the full Saudi Arabia tax and payroll guide](/country-hiring-guides/saudi-arabia/tax-and-payroll) ## How do you terminate an employee in Saudi Arabia? Terminating an indefinite contract requires 60 days written notice from the employer. End of Service Gratuity accrues at 15 days of last wage per completed year for the first five years, then 30 days of last wage per year after that. The 60 days employer notice period is the statutory minimum under Article 75 as amended in February 2025. Payment in lieu of notice is permissible. All final entitlements including EOSG, unpaid wages, and accrued leave must be settled within 7 days of the last day of employment when the employer initiates termination. End of Service Gratuity (EOSG) accrues at 15 days of last actual wage per completed year of service for the first five years, then 30 days per year after that. Employees who resign receive a reduced fraction of the full award depending on their length of service. Arbitrary dismissal under Article 77 carries a minimum compensation of two months of total wages. The termination guide runs the full process including the EOSG formula, the resignation tiers, and the collective dismissal rules. [Read the full Saudi Arabia termination and severance guide](/country-hiring-guides/saudi-arabia/termination-and-severance) ## What should you know before hiring in Saudi Arabia? Two things catch international buyers out. The first is Saudization. The second is that EOSG is a running liability, not just a termination cost. **Saudization (Nitaqat) sets minimum quotas for Saudi national employees.** Every business is classified into a band based on its compliance level. Operating in a low band restricts your ability to recruit expatriates, obtain work permits, and renew commercial registrations. The quota varies by industry and company size. Most international buyers treat GOSI as the only cost variable and underestimate the Nitaqat compliance layer. The EOR vs entity guide covers how Teamed navigates this. **EOSG accrues from the first completed year and is the employee's money from day one.** It is not a discretionary bonus or a redundancy reserve. It accrues at 15 days of last actual wage per year for the first five years, rising to 30 days per year after that. Most US and UK buyers first encounter EOSG at the point of exit and are surprised by the size of the liability. The termination guide shows how to model it from the first hire. [Read the full Saudi Arabia hiring guide](/country-hiring-guides/saudi-arabia/hiring-guide) ## Frequently asked questions How much does it cost to hire an employee in Saudi Arabia? Saudi Arabia has no personal income tax, so the employer cost above gross salary is narrower than in most markets. For a Saudi national employee, add GOSI at 11.75% employer. For an expatriate, add 2% for occupational hazard cover only. Teamed's Saudi Arabia fee is one flat number per employee per month, with zero FX mark-up in any currency pairing. The cost breakdown guide has worked examples. Can a foreign company hire in Saudi Arabia without an entity? Yes. An Employer of Record like Teamed runs Saudi payroll, Qiwa-registered contracts, and GOSI compliance through its own licensed entity. You direct the work. Teamed becomes the legal employer of record. Setup takes 48 hours once terms are confirmed. Forming your own Saudi LLC requires Foreign Investment License approval from MISA, commercial registration, and Qiwa platform enrollment, which typically takes several months. Is there personal income tax in Saudi Arabia? No. Saudi Arabia imposes no personal income tax on employment income for Saudi nationals or expatriate workers. The main payroll deduction is GOSI social insurance. Saudi nationals contribute 9.75% toward retirement and SANED. Expatriate employees have no GOSI employee deduction. Corporate income tax and Zakat apply to business entities, not employees. What is the notice period in Saudi Arabia in 2026? The February 2025 Labour Law amendments set the minimum employer notice period at 60 days written notice to terminate an indefinite contract for a monthly-paid employee. Employees resigning must give 30 days written notice. Payment in lieu of notice is permissible. Final entitlements must be settled within 7 days when the employer terminates. What is Saudi Arabia's End of Service Gratuity? End of Service Gratuity (EOSG) is a statutory benefit that accrues to every employee on termination. For employer-initiated termination, the rate is 15 days of last actual wage per completed year of service for the first five years, rising to 30 days per year after five years. Employees who resign receive a reduced fraction of the full award depending on their tenure. The termination guide covers the full formula. What is the minimum annual leave for an employee in Saudi Arabia? Statutory annual leave is 21 days per year for employees with fewer than five years of service under Article 109. After five consecutive years with the same employer it rises to 30 days per year. Saudi Arabia counts annual leave and public holidays separately. There are 10 official public holidays in 2026. Teamed Legal Operations Saudi Arabia surprises international buyers in two directions. The tax position is more favourable than almost anywhere else Teamed operates. The EOSG liability and the Saudization quota layer are more demanding than most buyers model before the first hire. The 2025 amendments added maternity leave, paternity leave, and doubled notice. These guides exist so neither surprise lands on your finance team without warning. A note from Tom Price-Daniel Saudi Arabia has no income tax on employment. GOSI is straightforward once you know the Saudi versus expatriate split. The surprises come from EOSG accruing as a running liability from year one, and Saudization quotas that shape every headcount decision. Read the right Saudi Arabia guide before the first hire, not after the first EOSG calculation. Tom Price-Daniel · Co-founder, Teamed ## Keep reading - [Saudi Arabia hiring guide, offer to payslip](/country-hiring-guides/saudi-arabia/hiring-guide)guide - [Saudi Arabia employer cost breakdown 2026](/country-hiring-guides/saudi-arabia/cost-breakdown)guide - [EOR vs entity in Saudi Arabia](/country-hiring-guides/saudi-arabia/eor-vs-entity)guide - [Saudi Arabia termination and severance](/country-hiring-guides/saudi-arabia/termination-and-severance)guide - [Saudi Arabia tax and payroll](/country-hiring-guides/saudi-arabia/tax-and-payroll)guide - [Employer of Record overview](/lp/employer-of-record)core - The Graduation Modelcore - [Teamed pricing, Zero FX Fixed](/pricing)core - [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator/saudi-arabia)tool - [Talk to an expert](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Saudi Ministry of Human Resources and Social Development (MHRSD) and the General Organization for Social Insurance (GOSI) for Saudi Arabia, or speak to a qualified professional, before relying on any specific framework.