Saudi Arabia

• Founding Day
• Eid Al Adha
• Arafat Day
• Eid al-Adha
• National Day.

Working Hours

The standard workweek in Saudi Arabia is eight hours per day, six days per week. Work in excess of 48 hours a week must be compensated at overtime rates, except for certain categories of work such as the catering trade.

Minimum Wage

Saudi nationals must receive a minimum wage of SAR 4,000 a month to count towards the employer's Saudization rate. Different minimum wages may apply to different professionals that fall under the Saudization requirements. Currently, there is no minimum wage applicable to foreign nationals working in Saudi Arabia.

Employee Tax

Tax rate	0%
Social security contribution	9.75%

Bonuses

Employees in Saudi Arabia receive a Ramadan bonus. This is usually equivalent to one month’s base salary and is paid annually during the holy month of Ramadan.

In Saudi Arabia, the labour law sets out an employee’s minimum entitlements and applies to all employer-employee relationships. Employers are free to impose different working terms on an employee, provided that they are more generous to the employee.

The employment contract should be concluded in Arabic. From 19^th February 2025, employment contracts must be attested.

A Saudi Arabian work contract must include the name of the employer and employee; venue; nationality; identification number; agreed remuneration; type and location of work; date of employment and duration of the contract (if it is a fixed-term contract).

There are two types of work contract permitted by law. Term contracts include fixed-term and indefinite contracts. Project-based contracts terminate with the completion of the work agreed upon.

Annual Leave

In Saudi Arabia employees are entitled  to 21 days' leave, which increases to 30 days after five years of service.

Sick Leave

In Saudi Arabia, an employee whose illness has been proven shall be eligible for paid annual sick leave as follows:

• First 30 days: full pay
• Next 60 days: three quarters of normal pay
• Following 30 days: unpaid

The year begins from the day of the first sick leave.

Parental Leave

Maternity leave: In Saudi Arabia, female employees are entitled to 12 weeks of maternity leave, starting at the earliest four weeks before the expected date of the birth (as stated in a medical certificate). Employees must take a six-week period of leave after the birth, and can choose to take the remaining period either before or after the birth.

Paternity leave: male employees are entitled to 3 days paid paternity leave, which must be taken within seven (7) days following the birth of their child.  The employer is entitled to demand supporting documents to prove the occurrence of the birth.

Termination Process

In Saudi Arabia, there are various circumstances in which an employer may terminate an employment contract without notice or an end-of-service indemnity.

If the contract is of an indefinite term, and the wage is paid on monthly basis, either party may terminate the contract for a valid reason as follows:

1. If the termination is initiated by the employee, a written notice must be issued to the employer at least thirty (30) days prior to the termination date.
2. If the termination is initiated by the employer, a written notice to the employee must be issued at least sixty (60) days prior to the termination date.

If the contract is of an indefinite period and the wage is not paid on a monthly basis, the party intending to terminate the contract for a legitimate reason must serve the other party a written notice at least thirty (30) days prior to the termination date.

An employee’s resignation application shall be considered accepted if thirty (30) days pass without a response from the employer. The employer shall have the right to postpone the acceptance of the resignation for a period not exceeding sixty (60) days if the interests of the work require, provided that a written explanation of the postponement justification is given to the employee.

This postponement in acceptance must occur before the expiry of the 30-day notice period. The postponement period will be calculated from the date the explanation is provided to the employee.

Severance Pay

In Saudi Arabia, when a fixed-term employment agreement comes to an end, or when an employer terminates an indefinite-term agreement other than for cause, the employee is entitled to half a month’s wages for each of the first five years of employment and a full month’s wages for each year of employment thereafter, in both cases pro-rated for part of a year’s service.

An employee who resigns during the term of a contract receives no end-of-service award for the first two years of employment.

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