Saudi Arabia EOR

Saudi Arabia Employer of Record

Saudi Arabia Employer of Record- PEO Middle East is a business partner that provides Saudi Arabia Employer of Record services for businesses in Saudi Arabia. Certainly, we make sure you run payroll and hire the employees you need without setting up a branch office or a subsidiary. However, we recruit your candidate using your innovative PEO methods complying with local laws.


Saudi Arabia Employer of Record, Compensation and Benefits

Saudi Arabia Employer of Record-Similarly, employees start to work in your workplace; therefore, then they work on your organization’s behalf as if they are internal workers to carry out the requirements of the position.


Table of content

  1. Our Services
  2. Doing business, hiring, and negotiating in Saudi Arabia
  3. Employing a Team in Saudi Arabia
  4. Employment Contracts
  5. Saudi Arabia Working Hours
  6. Vacation Leave in Saudi Arabia
  7. Severance/Termination in the country
  8. Saudi Arabia Tax
  9. Health Insurance Benefits in Saudi Arabia
  10. Additional Benefits in the country when Choosing Saudi Arabia Employer of Record
  11. Holidays in Saudi Arabia
  12. Why PEO Middle East is the best option for you in Saudi Arabia
Saudi Arabia Employer of Record

Our Saudi Arabia Employer of Record Services

Our different solutions enable our partners to sponsor Iqamas, recruit the workforce they need, and run payroll processing in the country; meanwhile, we can help you in the areas of HR services, compliance management and taxes. As a specialized PEO some of our Saudi Arabia Employer of Record services are:

  • The different employee payments.
  • Employment contract practices.
  • Statutory and market norm benefits.
  • Severance and termination.

We also liberate you from tedious processes keeping you notified of the different chances to local labor laws in Saudi Arabia.

You ensure you have your worker being established in your company faster, has a better onboarding experience, and is focused on your activities when you work side-by-side with us. However, you will find comfort knowing that our time of experts is taking care of every new candidate. PEO Middle East allows you to employ highly skilled and talented individuals around the globe, smoothly and quickly.

Doing business, hiring, and negotiating in Saudi Arabia

Firstly, people in Saudi Arabia value greatly personal interactions and want to establish harmony with their counterparts before negotiating any agreement. In the same vein, their meetings can be slow-paced and seem not pertinent, involve small talk, and are prone to interruptions.

After various become-familiar meetings, actual business talks can take place. However, the people of this country do not like to give bad news, so stay alert of undirect terms that really mean ‘no’. Similarly, all decisions can get reversed. In short, do not ask your counterpart about his wife, this is deemed as impolite.

Employing a Team in Saudi Arabia

The country has strengthened its policy of ‘Saudization’. To sum up, this is the national policy to encourage the employment of Saudis in the private sector. This is not a surprise, the country’s private sector is dominated by ex-pats. These policies have made sponsoring new work permits for employees arriving in the country for the first time really difficult.

The practice of sponsoring iqamas is achievable but at a higher cost. However, have in mind that you must advertise new visas to Saudi nationals before offering them to ex-pats. That is to say, this is the reason why it is sometimes better to recruit workers already residing in the country; then we transfer the employees to our local partner, and establish the worker on our customer’s company.

However, we take care of everything related to work permits, compliance with local HR laws, employment contract matters. PEO Middle East is currently the best option in the market in the Middle West.

Ex-pats work hard for this country; however, they must have a residency permit (Iqama) and a job to work in the country. Likewise, they also require an Exit-Entry Visa to leave and re-enter the country.

When you need to extend the duration of an Invitation Visa, the ideal alternative can be to issue multiple ‘Invitation Work Visit Visas’, these visas allow individuals to work for the validity of the visa and renew it continually and re-issue it in the country of residence. Likewise, the duration and cost-effectiveness of the visa depend on the nationality of the holder.

In the same vein, compensations in the country can be broken down into base income and allowances for transportation and housing.

However, you must have the next important factors in mind when you are negotiating employment contracts in Saudi Arabia:

Employment Contracts in Saudi Arabia Employer of Record Services

Employment contracts in the country state the terms of the worker’s compensation, termination requirements, and benefits. However, employment contracts and offer letters must always express any compensation amounts and income. Moreover, you must state the costs in Riyals instead of foreign currencies.

Likewise, the contract template is part of our services; you do not need to draft another If you have our PEO and Saudi Arabia Employer of Record services in the country.

In addition, the contracts of Saudis who work continuously for 4 years and complete 3 consecutive terms will become unlimited ones.

Saudi Arabia Working Hours

Employees of this country normally work 40 to 48 hours per week. During Ramadan, it is reduced to six hours. However, if the employee works more than 40 hours, they are entitled to the right of overtime. The country’s weekend consists of Friday and Saturday.

Vacation Leave in Saudi Arabia

The mandatory minimum vacation period is of 21 days. Likewise, from the sixth year of employment, the minimum is a month. It is traditional for employers to provide 30 days of vacations from the first year. Most importantly, companies usually pay for plane tickets for ex-pats who want to visit their family.

Severance/Termination in the country

The country allows periods of 3 months probation. If the worker and the company agree on it, the period can be extended for 90 days longer. However, probation periods are not mandatory. Workers with unlimited contracts receive 2 months’ notice. In addition, workers with other types of contracts to a month’s notice.

Workers with unlimited contracts have the right to 2 months’ notice. Workers with other types of contracts are entitled to one-month notice. If notice is not given, both parties can agree to the compensation. During the notice time, workers can use 8 hours of work time to find another job.

When a contract ends, the worker is entitled to a full month’s wages for every year of employment and to the ‘end-of-service award’, which consists of half of one month’s income for the first five years of employment

Saudi Arabia Tax

Companies must contribute to the social insurance tax (GOSI) on behalf of their workers. This is an estimate of 10% of the employer’s fee.

In addition, businesses must contribute to occupational hazards with a rate of 2% for non-Saudi and Saudi nationals.

Health Insurance Benefits in Saudi Arabia

Hospital and medical is provided for free through the national system for Saudi nationals. Additional health insurance is provided to ex-pats workers as a benefit. Most executives request complimentary life and health insurance, this is provided to all workers under our Global Employer of Record services.

Additional Benefits in the country when choosing Saudi Arabia Employer of Record

Some of the most common benefits include:

  • Travel tickets for vacation.
  • Supplementary health insurance
  • Housing and transportation allowances.
  • Education expenses.
  • Retirement plans.
  • Mobile phones.

PEO Middle East recommends budgeting 25% for the different worker’s benefits on top of the gross income to allocate the total worker’s cost including the benefits in the country.

Holidays in Saudi Arabia

There are two major religious festivals during the Islamic year:

  • Eid al Adha.
  • Eid Al Fitr.
  • The Saudi government announces public holidays each year.
  • Eid Al-Adha lasts for 4 days extending from the 5th to the 15th day of the month of Thul-Hijja.
  • Eid Al-Fitr: 3 days at the end of Ramadan.
  • Unification of the Kingdom Day: September 23rd.

Why PEO Middle East is the best option for you in Saudi Arabia Employer of Record

Setting up a subsidiary branch office Establishing a branch office or subsidiary in this beautiful country can be an expensive, complex, and time-consuming process. However, the country’s labor laws have strong employee protections, this requires huge attention to the details and understating the local practices.

In PEO Middle East if you choose Saudi Arabia Employer of Record Services than we make it easy to expand into this beautiful country. We can also assist you in hiring the candidates you want, handling your payroll and HR matters, and ensuring that you comply with local laws without setting up a subsidiary.

Our Employer of Record PEO solutions will help your company to grow, allowing you to focus on running your company.

In conclusion, you can email us via if you would like to discuss how we can assist you with the PEO, EoR solutions and Saudi Arabia Employer of Record via [email protected] or call us at +9714331688.

Saudi Arabia Employer of Record, payroll and HR Solutions

Saudi Arabia Employer of Record-An international workforce is an essential tool for your company's growth. Expansion comes with a few hurdles, though. Managing your team in a single office involves several administrative tasks. Those responsibilities become even more challenging when you have employees around the world.