Employing within KSA

Contributions

Employer:

 For Non-Saudi employment – 2% of basic salary towards Social Insurance Tax for non-Saudi
employment; occupational hazard
 For Saudi employment - 12% of basic salary towards Social Insurance for Saudi
employment; occupational hazard, pension, and unemployment

Payroll

 Cycles – weekly / monthly

 13th check – non-Mandatory

Working Hours

 General – Typical working week consists of 48 hours; 8 hours a day, and 6 days a week.
 Ramadan – Workdays are decreased at the employee’s discretion employer cannot force
an employee to work during Ramadan
 Overtime – All overtime hours excess of 48 hours per week or if stipulated differently in
the employment contract is paid at a rate of 150% of the employee’s basic salary rate

Leave

Paid Leave – Refer Article 109 Labour Law

 Annual leave determind by employee’s seniority

 Employees 1-5 years service – receives 21 days annual leave
 Employees >5 years service – receives 30 days annual leave
 Employees are entitled to full paid leave during Eid and Ramadan

Sick Days – Refer Article 117 Labour Law

 Sick leave with full pay – First 30 days

 Sick leave with 1/3 pay – 60 days after first 30 days
 Sick Leave with no pay – Last 30 days
 Total 120 days sick leave

Maternity Leave

 Female employees are entitled to 10 weeks paid maternity leave

Working <3 years – 50% of basic salary compensation
Working >3 years – 100% of basic salary compensation
Paternity Leave

 Employee entitled to 1 day paid leave