Employer of record in Saudi Arabia: costs and rules

Saudi hiring rules that differ from the US

• Social insurance depends on nationality. Annuities (old age, disability, death) cost 18% of contributory wage, split 9% employer and 9% employee, for Saudi workers only (Social Insurance Law art. 18). Occupational hazards cost 2%, paid by the employer alone, for every worker regardless of nationality, and can be doubled for employers who ignore safety instructions.
• Contributions have a ceiling. The maximum contributory wage is SAR 45,000 a month (art. 19). Contributions are computed on the basic wage; we have not confirmed whether the regulations add the housing allowance or the SAR 1,500 minimum.
• There is no general minimum wage. SAR 4,000 a month is the level at which a Saudi employee counts fully toward Nitaqat quotas (secondary source: Remote; the HRSD page was not reachable).
• Leave is 21 days, rising to 30 days after 5 years of continuous service (Labor Law art. 109). The count of about 10 public holiday days in the summary box is not yet confirmed.
• Probation and notice rules have been amended. The Labor Law text on the official BOE laws site (laws.boe.gov.sa) shows 90 days of probation (art. 53) and at least 30 days' notice for monthly-paid staff (art. 75), and marks both articles as amended. We have not yet confirmed the amendments, reportedly made in February 2025, from an official source, so get the current terms in writing from the EOR.

Employment costs and rules in Saudi Arabia

What an EOR charges to employ someone in Saudi Arabia

Saudi nationals and expatriates: two different GOSI bills

The same salary produces two very different bills. A Saudi national adds SAR 1,375 a month in employer GOSI (9% annuities plus 2% occupational hazards); an expatriate adds SAR 250 (2% only), and pays no employee annuities share.

Two open items for Saudi nationals. SANED unemployment insurance applies to them, but we have not confirmed its rate from GOSI. And the new Social Insurance Law in force since July 3, 2024 applies only to new entrants with no prior contribution periods, according to the Saudi Press Agency; their annuity rate schedule is not yet confirmed. Current contributors stay on the old rates, with retirement age rising gradually to a range of 58 to 65 for those under 50 with fewer than 20 years of contributions. For expatriates, the monthly expat levy and iqama and work permit fees come on top and are not in our totals.

The end-of-service award builds every year

Under Labor Law arts. 84 and 85, the employer owes half a month's last wage for each of the first 5 years and a full month for each year after that, prorated for part years and reduced when the employee resigns. At SAR 12,500 a month that is SAR 6,250 a year for the first 5 years and SAR 12,500 a year after. Ask whether your EOR invoices this monthly as an accrual or bills it when the job ends; it changes your cash flow and the deposit it may ask for.

Where vendor pages get Saudi Arabia wrong

Choosing an EOR in Saudi Arabia

Our scores (scoring method) rank Multiplier first at 79 ($459 a month annual, $499 monthly) and Oyster second at 64 ($699), then Remote at 62 and Deel at 54, both $599. Ask every provider to quote the hire as a Saudi national or an expatriate, with GOSI, SANED, the end-of-service accrual and any expat levy shown as separate lines. Compare terms in our best EOR guide and the Remote, Oyster and Deel reviews.

Contractor, EOR or a Saudi company

A contractor in Saudi Arabia skips GOSI and the end-of-service award, but an exclusive full-time arrangement can be treated as employment, and that award is the exposure. A contractor of record takes on the classification risk; a contractor management platform only pays. At SAR 26,955 a year per person in EOR fees, compare the cost of your own entity, including its Nitaqat quota obligations, with the EOR versus entity guide.