Hire and pay employees in Saudi Arabia, hassle-free

In Saudi Arabia, the minimum wage will depend on the nationality of the employee. For Saudi Nationals it will be SAR 4,000 and there won’t be a minimum wage for employees with visas.

There is no income tax in the Kingdom of Saudi Arabia.

The monthly employer cost will depend on the employee’s nationality, the health insurance category selected, and gender and marital status of the employee and their dependents. 

Estimated employer cost percentage

1.8% + fees for expat employees

Cost Type

Condition and Amount

Gosi Contribution

Expat employees: 

• 1.80% of the employee’s monthly gross salary or 
• 2% of the employee’s basic pay and housing allowance, capped at SAR 45,000

Saudi Nationals: 

• 10.575% of the employee’s monthly gross salary or 11.75% of the employee’s basic pay and housing allowance, capped at SAR 45,000 per month for employees who entered the job market before July 3, 2024
• 12.25% of the employee's basic pay and housing allowance, capped at SAR 45,000 per month, for employees who entered the job market after July 3, 2024

GCC national employees: 

• The contribution varies based on the employee’s nationality

Fixed Ajeer Fee

Expat employees: SAR 46

Nationalization Fee

Expat employees: Estimated SAR 3,000. This fee can vary between USD 400 to USD 800 depending on the employee's designation. 

Additional notes about costs

• The cost of mandatory health care insurance vary from SAR 3,795 to SAR 20,700 based on several factors, including the insurance category selected, the gender and marital status of the employee and their dependents.
• The monthly employer costs do not include visa fees.
• Expat employees are entitled to one return air ticket to their home country every year and a one-way exit air ticket to their home country in case of resignation, expiration, or termination of the contract.
• On each exit-entry in Saudi Arabia an expat employee fee of USD 54 is applied, a fee may vary up to USD 615 for multiple exit-entry requests for 1 year.
• In case the employee is an engineer, a Saudi Council of Engineering fee of SAR 800 yearly will apply.
• If Deel assists with a local bank account opening of an employee, a charge of USD 27 will be applicable.

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Standard working hours are 8 hours per day, 40 hours per week with a standard work week from Sunday to Thursday. However, depending on the business requirements employees can have an extended working week from Saturday to Thursday working 8 hours per day, 48 hours per week. 

The working hours during Ramadan are 6 hours per day

Overtime payment is mandatory for employees in non-managerial positions. 

All working hours performed during holidays and Eids are considered overtime hours. 

Employees can work a maximum of 10 hours a day and 60 hours per week including overtime, for a maximum of 481 hours of overtime in a year. For overtime hours, employees are paid 150% of the hourly rate computed on basic pay.

For employees to work overtime, the employer must grant written consent beforehand. 

Employees in managerial positions are entitled to a day off in lieu of overtime payment. Overtime payment for employees in managerial positions is not mandatory, but it can be granted with the employer’s approval.