EOR in Saudi Arabia
Employer of Record in Saudi Arabia.
Employ talent in Saudi Arabia without setting up a local entity.
- Fast and compliant employee onboarding
- Payroll, tax and social security in Saudi Arabia
- Transparent monthly EOR pricing
- Work-permit support where a permit is required
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Employment in Saudi Arabia
Employ in Saudi Arabia without establishing a local entity
Saudi Arabia is the largest economy in the Middle East, offering opportunities across technology, engineering, healthcare, finance, and other growing sectors.
Through an Employer of Record (EOR), international companies can hire and manage employees in Saudi Arabia without establishing a local legal entity. The EOR acts as the legal employer, handling employment contracts, payroll, applicable GOSI contributions, statutory benefits, and local employment compliance, while the client company manages the employee’s day-to-day responsibilities.
Foreign employees may also require appropriate work permits and residence authorization, subject to applicable immigration and workforce localization requirements.
At a glance
Saudi Arabia at a glance
Country essentials and economic context.
Country profile
Economic indicators
Employment
Employment essentials
Choose a topic to explore local employment requirements.
Statutory public holidays are separate from paid annual leave entitlements.
Public holidays in Saudi Arabia
There are 10 public holidays in Saudi Arabia. Religious holidays follow the lunar calendar and their dates may vary each year.
- 22FebFounding Day22 February
- VariesEid al-FitrVariable (Islamic calendar)
- VariesArafat DayVariable (Islamic calendar)
- VariesEid al-AdhaVariable (Islamic calendar)
- 23SepSaudi National Day23 September
Saudi Arabia generally does not impose personal income tax on employment salaries. Employers are responsible for accurate payroll administration, applicable GOSI contributions, and statutory employment reporting. Corporate income tax, Zakat, and VAT are separate from employee salary taxation.
EOSB is calculated based on the employee’s final wage and length of service, subject to statutory rules. Resignation, termination circumstances, and applicable exceptions may affect the final entitlement.
Included
What’s included in your EOR service?
Employment administration and support for your team in Saudi Arabia.
Employment Contracts & Onboarding
Preparation of employment contracts in accordance with Saudi Labour Law, employee onboarding and applicable statutory registrations.
Monthly Payroll in Saudi Arabia
Gross-to-net salary calculations, payslips, statutory deductions and monthly payroll processing in Saudi riyals (SAR).
GOSI Registration & Contributions
Employee registration with the General Organization for Social Insurance (GOSI), applicable contribution calculations and ongoing reporting.
Saudi Payroll Compliance
Administration of applicable payroll reporting, wage payments and compliance with Saudi Arabia’s Wage Protection System (WPS).
Leave & Benefits Administration
Management of statutory annual leave, maternity, paternity and sick leave, together with agreed employee benefits.
Employee Records & Data Protection
Maintenance of legally required employee records and HR documentation, with personal data handled in accordance with Saudi Arabia’s Personal Data Protection Law (PDPL).
Local HR & Labor Law Support
Ongoing assistance with Saudi employment regulations, employee relations and day-to-day HR administration.
Termination & Final Settlement
Coordination of termination procedures, applicable notice requirements, end-of-service benefits, unused leave compensation and final payroll settlement.
EOR vs Local Entity in Saudi Arabia
| Factor | EOR | Local Entity |
|---|---|---|
| Setup Time | Faster onboarding without local incorporation | Longer setup, including investment registration and incorporation |
| Setup Cost | No local share capital required from the client | Incorporation costs and applicable capital requirements |
| Compliance | Local employment and GOSI administration managed by the EOR | Direct responsibility for employment and regulatory compliance |
| Payroll | SAR payroll and statutory contributions managed | In-house or outsourced payroll administration |
| Employment Risk | Statutory employer obligations managed by the EOR | Direct legal employer responsibility |
| Scalability | Hire without establishing a local entity | Requires establishing and maintaining a local entity |
EOR arrangements remain subject to applicable Saudi employment, immigration, and workforce localization requirements. Depending on the business activities and operating structure, additional regulatory or tax considerations may apply.
Hiring
Hiring & compliance in Saudi Arabia
Key hiring requirements and compliance considerations for international employers in Saudi Arabia.
Work Permits & Hiring Foreign Employees
Foreign nationals generally require valid work authorization and residence documentation to work in Saudi Arabia. Gini supports eligible work-permit processes, employment documentation and onboarding, subject to applicable immigration and Saudization requirements.
Employee vs Independent Contractor in Saudi Arabia
Worker classification depends on the actual working relationship, including supervision, control and contractual arrangements. Misclassification may result in employment, social insurance and regulatory liabilities.
Important Compliance Risks in Saudi Arabia
EOR arrangements do not eliminate all local compliance risks. International employers should consider Saudization requirements, immigration restrictions, permanent establishment exposure, intellectual property rights and employee data protection under Saudi Arabia’s Personal Data Protection Law (PDPL).
Employment termination in Saudi Arabia
Notice Periods
For indefinite-term employment contracts, statutory notice periods depend on who initiates termination and how the employee is paid.
| Termination Scenario | Notice Period |
|---|---|
| Employee resignation (monthly-paid) | 30 days |
| Employer termination (monthly-paid) | 60 days |
| Non-monthly-paid employees | 30 days |
Different rules may apply to fixed-term contracts and termination for specific statutory grounds.
End-of-Service Benefits (EOSB)
Employees may be entitled to an end-of-service award calculated according to their length of service and final wage.
| Length of Service | Standard Calculation |
|---|---|
| First 5 years | Half a month’s wage per year |
| After 5 years | One month’s wage per additional year |
Resignation, termination circumstances and statutory exceptions may affect the final entitlement.
Unlawful Termination & Compensation
Termination must comply with Saudi Labour Law and the applicable employment contract. Where termination is unlawful, the affected employee may be entitled to statutory or contractual compensation.
Compensation depends on the contract type, termination grounds and applicable legal provisions.
Unused Annual Leave
Employees are generally entitled to payment for accrued but unused statutory annual leave when employment ends.
The amount payable depends on the employee’s outstanding leave balance and applicable wage calculation rules.
Documentation & Final Settlement
Employers must complete the required termination documentation, update applicable employment and social insurance records, and settle outstanding employee entitlements.
Final settlement may include unpaid wages, unused annual leave, applicable end-of-service benefits and other contractual payments.
Under Saudi Labour Law, employee entitlements generally must be settled within one week when the employer ends the employment relationship, or within two weeks when the employee terminates the contract, subject to applicable statutory rules.
Customer success
Employ in Saudi Arabia with one partner
Gini hires and employs people in Saudi Arabia under local rules, covering the contract, payroll, tax and social contributions, without opening a local entity first.
Payroll, tax and social security stay with one accountable partner.
Gini TalentEmployer of Record
Download free guide for Saudi Arabia
A practical guide to employment, payroll, tax and EOR compliance in Saudi Arabia.
