Hiring guide · EMEA
How to hire in Saudi Arabia
To hire in Saudi Arabia you need a licensed entity that can sponsor an iqama and meet Saudization quotas, or an Employer of Record that holds one. GOSI is about 21.5% for Saudi nationals and 2% for expatriates, and there is no personal income tax on salary.
- Currency
- SAR
- Payroll cycle
- Monthly via WPS
- Employer cost
- ~2% expats, ~21.5% Saudis
- Notice
- 30–60 days
The talent market in Saudi Arabia
Saudi Arabia is the largest Gulf economy and is investing heavily in technology, giga-projects, financial services and tourism under Vision 2030. Regional headquarters incentives have pulled multinational leadership roles from elsewhere in the Gulf into Riyadh.
Hiring is shaped by Saudization. The Nitaqat framework sets sector-specific quotas of Saudi nationals, and an entity's colour band determines its access to visas and government services — so nationality mix is a planning input, not a diversity afterthought.
Salary benchmarks in Saudi Arabia
Indicative annual gross base salary in SAR for common roles. Treat these as planning ranges — actual offers move with city, seniority, sector and equity mix, and we model a live benchmark before you go to offer.
| Role | Annual gross base |
|---|---|
| Software engineer (mid) | SAR 240,000 – 380,000 |
| Senior software engineer | SAR 380,000 – 550,000 |
| Account executive (SaaS) | SAR 300,000 – 500,000 incl. variable |
| Customer support specialist | SAR 90,000 – 150,000 |
Employment rules and payroll in Saudi Arabia
The statutory framework any offer has to sit inside — hours, leave, notice and the contributions that turn salary into fully loaded cost.
Working week
48 hours, reduced to 36 during Ramadan for Muslim employees
Probation
Up to 90 days, extendable to 180 by agreement
Notice period
30 days for monthly-paid fixed-term, 60 days for indefinite contracts
Paid leave
21 days after one year, rising to 30 after five years
Public holidays
Eid al-Fitr, Eid al-Adha, Founding Day and National Day
Payroll cycle
Monthly, paid through the Wage Protection System
Employer contributions
GOSI ~21.5% for Saudi nationals; ~2% occupational hazard for expatriates, plus end-of-service benefits
Contractor, EOR employee or your own entity?
Three ways to engage someone in Saudi Arabia. The right one depends on how permanent the role is, how much direction you give, and how much local risk you want to carry.
Contractor
Fastest to start and simplest to end. Suitable for genuinely independent, project-scoped work where the person controls how and when they deliver, invoices you, and works for other clients. No statutory benefits, no notice period, no severance.
Employee via EOR
The right structure for a full-time role with fixed hours, managerial direction and exclusivity. A licensed in-country partner is the legal employer, so the person gets a compliant contract, statutory benefits and local payroll — without you opening an entity.
Your own entity
Worth it once headcount, permanence and local revenue justify the incorporation, tax registration, statutory filings and local directorship. Most companies reach that point somewhere between 15 and 30 employees in a single country.
Misclassification risk in Saudi Arabia
Working in the Kingdom requires an iqama tied to a sponsoring employer or a valid freelance permit. Engaging someone outside that framework is an immigration violation with fines and possible bans, and Saudization quotas cannot be circumvented by contracting arrangements.
Work permits and right to work
Expatriate hires need a block visa allocation, a work visa, then an iqama sponsored by the employing entity, with professional accreditation required for many titles. Processing typically takes four to eight weeks and depends on the sponsor's Nitaqat band.
Hire in Saudi Arabia without an entity
TalentStores orchestrates Employer of Record employment in Saudi Arabia through licensed in-country partners, with cost modelled before you extend an offer.
Explore Employer of Record- Fully loaded cost modelled before offer
- Licensed partner matched, not assumed
- One contract, one consolidated bill
Hiring in Saudi Arabia: frequently asked questions
Can we hire in Saudi Arabia without a local entity?
Yes. A Saudi Employer of Record with the appropriate licence and Nitaqat standing employs the person, sponsors the iqama, and pays through the Wage Protection System — which is otherwise only possible with your own commercial registration.
What is Saudization and does it apply to our hires?
The Nitaqat framework sets minimum percentages of Saudi nationals by sector and company size, and an employer's band controls its access to work visas. Any hiring plan in the Kingdom has to be modelled against the employing entity's quota position.
What does an expatriate employee cost above salary?
GOSI occupational hazard contributions of about 2%, mandatory medical insurance, iqama and levy fees, and end-of-service benefits accruing at half a month per year for the first five years, then a full month per year thereafter.
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Get the Saudi Arabia Hiring Cost Guide
A country brief covering fully loaded employment cost in SAR, salary benchmarks by role, statutory contributions, leave and notice rules, and a sample offer breakdown for Saudi Arabia.