Saudi Arabia

Last Update by Federico, 20 Nov 2024

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Exchange Rate

01 Dec 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

2.1%

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 staff
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
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

  • 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

Used for project-based work and temporary positions requiring highly skilled staff

Contract Format

Written in Arabic, bilingual contracts are accepted but Arabic must be one of the language. Two copies are made and provided to each party

Payroll Currency

SAR

Probation

Statutory: 90 days
Up to 180 days: Upon agreement

Contract Period

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

Termination

  • Notice during probation for staff and employers:
    - No notice required
  • Notice after probation for staff and employers:
    - 30 days in writing
  • Severance (EOS) Voluntary resignation:
    - Staff with 2 completed years' service are eligible
    - Under 2 years' service: 1/3 monthly salary * service years
    - 5- 10 years' service: 1 additional monthly salary * additional service year
  • Severance (EOS) involuntary termination:
    - First 5 years' service: 0.5 monthly salary * service years
    - Each subsequent year: 1 month salary * service for exceeded service years

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
Sick leave Up to 120 working days per year All staff after 90 days' service
Maternity Leave 10 weeks
4 weeks taken before birth, 6 weeks after 		All expectant mothers
Paternity Leave 3 working days All expectant fathers
Bereavement Leave 5 working days All staff with death of a family member
Marriage Leave 5 working days All staff
Iddah Leave 4 months and 10 days for Muslims
15 days for non Muslims 		All wives whose husbands die
Hajj Leave 10-15 working days All eligible Muslim staff with 2 consecutive years' service for the first pilgrimage

Reference

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