Saudi Arabia Payroll Outsourcing

Saudi Arabia Payroll Outsourcing

Saudi Arabia Payroll Outsourcing- Businesses establishing for the first time in Saudi Arabia must set up a payroll, manage compensations, hire their workforce, and implement a management plan. Similarly, businesses do this in order to operate legally in the country. The Wage Protection System (WPS) and the General Organization for Social Insurance (GOSI) are important and you must comply with their regulations.


Saudi Arabia Payroll Outsourcing, Compensation and Benefits

Saudi Arabia Payroll Outsourcing- In PEO Middle East, we work side-by-side with you to ensure your business’ growth. Likewise, we allow you to focus on your core business activities while we take care of time-wasting processes.


Table of Contents

  1. Taxation Rules
  2. Payroll options for businesses in Saudi Arabia
  3. How to Set Up a Payroll in the country
  4. Entitlement and Termination Terms
  5. Payroll processing summary
  6. Benefits of working with us in Saudi Arabia
  7. Why PEO Middle East is the best option for you in Saudi Arabia Payroll Outsourcing?
Saudi Arabia Payroll Outsourcing

Taxation Rules

As a legal entity in the country, you must pay taxes on behalf of your workers and make sure they are registered and pay the taxes themselves. That is to say, companies are required to pay the social insurance tax (GOSI) for every worker on their basic wage. In the same vein, we recommend you budget around 10% of the worker’s cost for this.

In addition, you must also make a 2% contribution to work hazards insurance for all your workers.

Payroll options for businesses in Saudi Arabia

Businesses establishing in Saudi Arabia have 4 options to run their payroll; however, some are better than others. Let’s observe:

  • Remote payroll: bigger multinationals have the resources to append workers in the country to the parent business’ payroll. Further, this could streamline the payroll process, but you could face compliance issues since your workers in Saudi Arabia have different regulations than those working for the parent company.
  • Saudi Arabia payroll processing company: certainly, you can choose to work with a local entity in the country and it will manage your payroll. Moreover, even though they will pay your workers, you are still accountable for compliance matters.
  • Internal payroll: if you want to establish in the country and run an internal payroll; you must open an in-house department at this branch office. However, you require a significant amount of money and more workers in your HR department.
  • Saudi Arabia payroll outsourcing: at last, you can decide to work with us and our innovative processes. In PEO Middle East we make sure your workers are paid at the right time and comply with the labor laws in this beautiful country.

How to Set Up a Payroll in the country

Before you are able to set up payroll in Saudi Arabia, you must establish a subsidiary. Consequently, this is usually a lengthy process and can take several months. Similarly, the different steps of this process are costly too, so you must budget the correct amount. In PEO Middle East, we also work with you as the Employer of Record, so will not need to establish a subsidiary.

As a result, we allow you to establish in just a few days so you can set up your payroll and hire highly skilled workers quickly.

Entitlement and Termination Terms

Before you are able to hire workers and manage your payroll, you must outline severance and termination terms. In the same vein, the probation periods in Saudi Arabia are of 90 days based on the agreement between the worker and the company. That is to say, some employment contract includes how much notice you must give the worker before the termination.

However, the workers have the right to the “end-of-service” benefit once the employment contract is terminated; however, this depends on their salary.

Payroll processing summary

Consistency and perfect accuracy are 2 important aspects of payroll processing. Similarly, workers always expect their payment to arrive on time. And when they receive their compensation, they also expect to receive the amount they are due. In addition, it is crucial that businesses choose the best partner when it comes to payroll processing

Therefore, in PEO Middle East we are committed to providing compliant, cost-effective, and secure payroll services so your business can grow.

KSA Wages Protection System (WPS)

The government of the country implemented this system to guarantee the security of workers in the private sector, ex-pats, and nationals. Further, this system was created so workers can receive their compensation in a timely and fair manner. In addition, the WPS system also ensures the workers are paid to what was agreed in the employment contract.

In the same vein, the salaries must correlate to the registration in the GOSI. Likewise, GOSI collects companies’ contributions, implements the rules on social insurance, and pays the due benefits.

Above all, GOSI calculations are now mandatory in the Kingdom. Therefore, this is why we have a team of specialized experts assisting our partners in every stage of this process.

Benefits of working with us in Saudi Arabia

  1. Accurate payments: in PEO Middle East we allow you to focus on your business while we pay the due benefits to your workers timely.
  2. Local approach: receive the best guide about how to properly process your payroll with our in-country team of experts.
  3. Tax-related tasks: you will not need to worry about filling and processing taxes, we will take care of this process.
  4. Local law compliance: we are committed to ensuring your payroll stays compliant with the different employment and labor laws in the country.
  5. Centralized solution: having a single trustworthy partner is a good practice for payroll processing tasks.
  6. Complimentary services: you can customize and select among our comprehensive services to improve your workforce management.

Why PEO Middle East is the best option for you in Saudi Arabia Payroll Outsourcing?

Having an automated payroll system is the best way to ensure the well-being of your workers while complying with the different employment laws of Saudi Arabia. In addition, we understand that your organization needs the highest quality service. Thus, we understand that your company is not like any other and you need special services.

However, if you want us to start working on Saudi Arabia Payroll Outsourcing with you or if you have additional inquires, you can either:

Saudi Arabia Payroll Outsourcing, administrative tasks and Benefits

Saudi Arabia Payroll Outsourcing- 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.