Saudi Arabia

Last Update by Katie, 07 Jun 2024

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Exchange Rate

23 Jun 2024

 

Cost of Living

Indicative value for a working adult in a city: Riyadh

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (SAR)
McDonalds Set Meal 30
Monthly Train and Bus Tickets 124
3 Bedrooms Rental (City Center) 7,541
3 Bedrooms Rental (Outskirt) 3,728

Current Inflation Rate

1.6%

Wage

Minimum Wages

  • The minimum wage is 4,000 SAR for private sector.

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (SAR)
Entry-Level
Fresh Graduate
7,300
Mid-Level
5 Years
11,000
Experienced & Managerial Level
10 Years
20,000
Specialized & Senior-Level
15 Years
36,000

Annual Salary Growth

5%

Statutory Contribution

Country Level

Type Employer Rates Employee Rates Notes
General Organization for Social Insurance (GOSI) 11.75%
2% for non-Saudi nations
9.75%
0% for non-Saudi nations
All local staff
All non-Saudi nationals
Unemployment Insurance (SANED) 1%
Income between 1,500 and 45,000 SAR per month
1%
Income between 1,500 and 45,000 SAR per month
All local staff under 59 years old
(mandatory for private sector nationals,, government staff subject to social insurance law)
Occupational Hazard 2% - All staff
IQAMA 10,250 SAR per year - All expat staff on employment visa and residence permit
Annuities (Pension Branch) 9% 9% All local staff only paid in cases of retirement, disability or death
Saudi Labor Office Fees/Expat Levy/(Maktab Amal Fee) 800 SAR per month - All expat staff by Saudi businesses
Requires hiring Saudi nationals on a quota basis
Transportation Allowance 10% of basic salary - Remote working staff
Housing Allowance 25% of basic salary - Remote working staff

Other Benefit

Other common employment benefits in Saudi Arabia include:

  • Additional Health Insurance: 800 SAR per month

Income Tax

Residents

  • Tax period: based on the company’s fiscal year
    Filing Due Date: within 120 days of the company's fiscal year
  • There is no personal income tax.

Working Hours

Statutory

40-48 Hours
8 hours a day, 5-6 days a week

Typical practice

40/48 Hours
Sunday- Thursday

Overtime

Employees can work maximum of 10 hours a day, 60 hours per week

  • Paid at 150% of basic salary

Employment Contract

Fixed Term

Probation

Statutory 90 days, up to 180 days upon agreement

Contract Period

Can be renewed 3 times, total duration can not be longer than 4 years

Termination

  • Notice period: 60 days
  • Severance- Termination by employer:
    - First 5 years' service: 0.5 monthly salary * service years
    - Each subsequent year: 1 month salary * service for exceeded service years
  • Severance for staff involuntary termination::
    - Under 2 years' service: Employers pay 1/3 monthly salary * service years
    - 5- 10 years' service: 1 additional monthly salary * additional service year

Public Holiday

11 days

Country Level

Date Name
22 Feb Foundation Day
10 Apr - 13 Apr Eid al-Fitr
15 Jun - 18 Jun Day of Arafah
16 Jun - 18 Jun Eid al-Adha
23 Sep Saudi National Day

Leave

Leave Type Entitlement Notes
Annual Leave 21 calendar days - under 5 years' service
30 calendar days- + 5 years' service
All staff after 90 days' service or mutual agreement with employers during probation
Maternity Leave 10 weeks
4 weeks taken before birth, 6 weeks after
All expectant mothers
Sick leave 120 working days per annum All staff
Paternity Leave 3 working days All expectant fathers taken after birth
Haji Leave 10-15 working days All eligible Muslim staff with 2 consecutive years' service for the 1st pilgrimage
Marriage Leave 5 working days All staff
Compassionate Leave 5 working days All staff

Reference

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