This guide is for general reference only and is not legal advice. Employers should confirm obligations for their specific workforce, contracts, and sector before taking action.
Employee benefits in Saudi Arabia center on GOSI social insurance, paid vacation, sick leave, maternity and birth leave, public holidays, working-time rules, end-of-service gratuity, and employer-paid statutory costs for foreign workers. For Saudi new-system employees in the current phase, GOSI totals 12.75% employer and 10.75% employee on contributory wages capped at SAR 45,000 per month; non-Saudi employees are generally covered for occupational hazards at 2% employer-paid.
Competitive employers often add richer medical coverage, dental and vision riders, wellness support, learning budgets, flexible scheduling policies, and discretionary Eid or year-end bonuses. For professional roles, these supplemental benefits are market norms rather than standalone statutory entitlements unless written into the contract or policy.
Mandatory benefits under Saudi labor law include GOSI contributions, statutory paid leave, public holidays, working-time and overtime protections, notice and end-of-service payments, Saudi-worker training obligations, and employer-borne foreign-worker costs. The table below summarizes the main statutory benefits employers should budget and administer.
Benefit | Entitlement / rate | Legal basis |
|---|---|---|
GOSI Social Insurance | Saudi new-system cohort: employer 12.75% and employee 10.75% in the current phase, made up of pension 10%/10%, SANED 0.75%/0.75%, and occupational hazards 2% employer-only. Non-Saudi employees are generally subject to 2% employer-paid occupational hazards only. Wage ceiling: SAR 45,000 per month. | Social Insurance Law 1445H and GOSI published contribution rates |
Annual Vacation | 21 paid days per year, increasing to 30 paid days after 5 consecutive years of service; vacation is paid in advance. | Saudi Labor Law, as amended 2025 |
Sick Leave | 120 days per annual cycle: 30 days at full pay, 60 days at 75% pay, and 30 days unpaid. | Saudi Labor Law, as amended 2025 |
Maternity Leave | 12 weeks at full pay, with 6 weeks after childbirth mandatory and the remaining 6 weeks available before or after birth within the statutory rules. | Saudi Labor Law, as amended 2025 |
Birth Leave for Fathers | 3 days at full pay, taken within 7 days of the child's birth. | Saudi Labor Law, as amended 2025 |
Special Paid Leave | 5 paid days for marriage or death of a spouse, ascendant, or descendant; 3 paid days for the birth of a child. | Saudi Labor Law, as amended 2025 |
Hajj Leave | 10 to 15 paid days, including Eid al-Adha, once during service after 2 consecutive years. | Saudi Labor Law, as amended 2025 |
Public Holidays | 10 paid days in current practice: 4 days for Eid al-Fitr, 4 days for Eid al-Adha, 1 Saudi National Day, and 1 Founding Day. | Saudi Labor Law, as amended 2025, and HRSD official holiday guidance |
Working Time and Overtime | 8 hours per day or 48 hours per week; Muslim employees are limited to 6 hours per day or 36 hours per week during Ramadan. Overtime is paid at the hourly wage plus 50% of the basic wage. | Saudi Labor Law, as amended 2025 |
Notice for Indefinite-Term Contracts | For monthly-paid employees, 30 days when the employee terminates and 60 days when the employer terminates; for non-monthly-paid employees, 30 days. | Saudi Labor Law, as amended 2025 |
End-of-Service Gratuity | 0.5 month's wage for each of the first 5 years and 1 month's wage for each later year, with partial years paid pro rata; resignation reductions apply by service length. | Saudi Labor Law, as amended 2025 |
Saudi-Worker Training Quota | Employers must train or qualify at least 12% of Saudi employees annually. | Saudi Labor Law, as amended 2025 |
Foreign-Worker Statutory Costs | Employer bears recruitment, residency, work-permit, renewal, profession-change, exit/re-entry, and return-ticket costs; work-permit issuance or renewal service fee is SAR 100. | Saudi Labor Law, as amended 2025, and HRSD work-permit service guidance |
GOSI contributions differ by nationality and cohort. Under the GOSI published contribution rules, Saudi employees in the current new-system phase have a 12.75% employer rate and 10.75% employee rate on contributory wages capped at SAR 45,000 per month. Those totals comprise pension at 10% employer and 10% employee, SANED at 0.75% each, and occupational hazards at 2% employer-paid. Non-Saudi employees are generally covered by occupational hazards only at 2% employer-paid.
Employees receive at least 21 paid vacation days per year of service, rising to at least 30 paid days after 5 consecutive years. Vacation pay is due in advance, and employers must manage scheduling and carryover in line with the Saudi Labor Law, as amended 2025. HRSD's annual-leave guidance confirms the 21-day and 30-day vacation thresholds for covered employees.
Sick leave is available for up to 120 days in a single annual cycle that starts from the first sick-leave day. The pay sequence is 30 days at full pay, then 60 days at 75% of wages, then 30 days unpaid. Continuous and intermittent absences are aggregated, and medical proof from an approved medical authority is required under the Saudi Labor Law, as amended 2025.
Maternity leave is 12 weeks at full pay. Six weeks after childbirth are mandatory, and the remaining 6 weeks may be allocated by the employee within the permitted pre-birth and post-birth window, including starting up to 4 weeks before the expected delivery date. A female employee who gives birth to a sick child or a child with special needs may also receive 1 month at full pay and 1 additional unpaid month.
A male employee is entitled to 3 paid days when his child is born, and the leave must be taken within 7 days of the birth. This leave sits alongside the separate special paid-leave rules that provide 5 paid days for marriage or the death of a spouse, ascendant, or descendant. These are statutory entitlements under the Saudi Labor Law, as amended 2025.
Saudi Arabia recognizes 10 paid public-holiday days in current practice: 4 days for Eid al-Fitr, 4 days for Eid al-Adha, 1 day for Saudi National Day, and 1 day for Founding Day. Work performed on holidays and official days off is treated as overtime. HRSD holiday guidance confirms the current official holiday framework.
Different end-of-service formulas apply by trigger. For normal termination, retirement, or fixed-term expiry, gratuity is 0.5 month's wage per year for the first 5 years and 1 month's wage per later year, prorated for partial years. On resignation, the employee receives 1/3 after 2 to 5 years, 2/3 after more than 5 and less than 10 years, and full gratuity from 10 years. Illegitimate termination compensation is 15 days' wages per service year for indefinite-term contracts or remaining wages for fixed-term contracts, with a 2-month minimum.
Employers subject to the Saudi Labor Law must train or qualify at least 12% of Saudi employees each year. For non-Saudi employees, the employer bears recruitment, residency, work-permit, renewal, profession-change, exit/re-entry, and return-ticket costs. The HRSD work-permit issuance or renewal service fee is SAR 100. These costs should be budgeted separately from salary, GOSI, and any market-based allowances.
Ordinary working time is 8 hours per day or 48 hours per week. For Muslim employees during Ramadan, the statutory limit is 6 hours per day or 36 hours per week. Separately, the maximum total workplace presence is 12 hours per day, so employers should distinguish ordinary hours from the broader daily presence cap. Overtime applies to hours beyond the statutory limits and to work on holidays or official days off, and is paid at the hourly wage plus 50% of the basic wage. HRSD's working-time guidance sets out the 8-hour, 48-hour, and Ramadan limits. Saudi Arabia does not set a universal statutory minimum wage; HRSD uses occupation-specific localization salary thresholds such as SAR 5,500 per month for marketing and sales and SAR 8,000 per month for engineering.
Supplemental benefits in Saudi Arabia are market norms, not statutory entitlements, unless an employer makes them contractual. Competitive packages often vary by nationality, seniority, sector, and whether the role is locally hired or expatriate-heavy.
For professional employees, richer private medical coverage is a typical market expectation, especially where employers compete for multinational or expatriate talent. A common planning range for enhanced medical cover is SAR 3,000 to SAR 10,000 per employee per year. Dental and vision are usually riders or higher-tier plan features, often budgeted at SAR 300 to SAR 1,200 per employee per year.
Wellness, mental-health, and learning benefits are typically employer-designed rather than required by law. Basic wellness support, screenings, counseling access, or gym-related perks may range from SAR 0 to SAR 1,500 per employee per year. Learning and development budgets for professional roles commonly fall around SAR 3,000 to SAR 12,000 per employee per year, depending on certification needs and seniority.
Hybrid work, occasional remote days, and flex-time are market practices, not a general statutory right. Saudi Arabia also has a regulated flexible-work contract framework for specific hourly arrangements, but that is separate from a standard remote-work policy. Employers usually define eligibility, approval rights, equipment support, and data-security duties in an internal policy, with incremental costs often around SAR 0 to SAR 1,000 per employee per year.
A fixed 13th-month salary is not a statutory requirement in Saudi Arabia. Some employers instead provide an Eid, year-end, or performance bonus as a market practice. Where paid, common discretionary bonus planning may range from 1 to 3 months of basic salary, with some benchmarked packages paying more. Repeated payments at the same formula should be documented carefully to avoid creating an unintended contractual expectation.
Total employer cost in Saudi Arabia is driven by salary, the employee's GOSI category, supplemental medical coverage, immigration-related costs for non-Saudis, and any discretionary allowances or bonuses. Employers should also accrue for end-of-service gratuity separately from monthly payroll taxes and benefits premiums.
Cost line | Typical employer cost | Notes |
|---|---|---|
GOSI for Saudi new-system employees | 12.75% of contributory wage | Applies to the current new-system phase, with contributory wages capped at SAR 45,000 per month. |
GOSI for non-Saudi employees | 2% of contributory wage | Employer-paid occupational hazards coverage only, generally capped at SAR 45,000 per month. |
Private medical | SAR 3,000 to SAR 10,000 per employee/year | Indicative market range for enhanced employer-paid coverage; dependent and outpatient cover can increase cost. |
Dental and vision | SAR 300 to SAR 1,200 per employee/year | Usually added as a rider or richer plan tier rather than a stand-alone universal benefit. |
Wellness and mental health | SAR 0 to SAR 1,500 per employee/year | Costs depend on whether the employer offers basic counseling access, screenings, gym support, or broader wellness programming. |
Learning and development | SAR 3,000 to SAR 12,000 per employee/year | Planning range for professional roles; statutory Saudi-worker training obligations should be tracked separately. |
Flexible work support | SAR 0 to SAR 1,000 per employee/year | Usually an incremental policy, administration, or IT cost rather than a cash allowance. |
Eid or year-end bonus | SAR 20,000 to SAR 60,000 per employee/year on a SAR 20,000 base | Discretionary and salary-dependent unless made contractual. |
For a professional earning SAR 20,000 per month, an illustrative employer cost is SAR 22,682 per month for a Saudi national when employer GOSI and market-average medical cost are included. For a non-Saudi employee, the same assumptions produce SAR 20,682 per month because employer GOSI is generally limited to 2% occupational hazards. This excludes housing, transport, bonus, immigration administration, and gratuity accrual. Model your full package in our cost calculator.
1. Applying One GOSI Rate to Everyone
Saudi nationals and non-Saudi employees are treated differently. Saudi employees may have pension, SANED, and occupational-hazards contributions, while non-Saudi employees are generally covered by 2% employer-paid occupational hazards only.
2. Forgetting Gratuity Accrual
End-of-service gratuity is not a payroll contribution, but it is a real statutory liability. Employers should accrue it by service length and apply the correct formula for resignation, lawful termination, fixed-term expiry, or illegitimate termination.
3. Misclassifying Flexible Work
A hybrid-work policy is not the same as Saudi Arabia's regulated flexible-work contract framework. Employers should document eligibility, working hours, platform requirements, equipment support, and whether the arrangement is a standard policy benefit or a separate hourly contract.
4. Underwriting Benefits Too Narrowly
A bare-minimum medical plan may satisfy a basic coverage expectation but still fall short for professional and expatriate-heavy hiring. Employers should align medical, dependent, outpatient, dental, and vision terms with offer letters and insurer certificates.
5. Overlooking Foreign-Worker Fees
For non-Saudi employees, employers bear recruitment, residency, work-permit, renewal, profession-change, exit/re-entry, and return-ticket costs. These amounts should be budgeted outside salary, GOSI, medical premiums, and discretionary allowances.
Atlas HXM helps employers administer Saudi Arabia benefits through localized payroll, statutory contribution handling, leave tracking, and policy support. Our global employee benefits administration capabilities help teams align statutory requirements with competitive supplemental benefits.
For companies hiring without a local entity, Atlas can support compliant onboarding, payroll, benefits administration, and employment documentation through our Saudi Arabia Employer of Record solution.
12.75% is the employer rate for Saudi employees in the current new-system phase, calculated on contributory wages up to SAR 45,000 per month. The employee share is 10.75%. Non-Saudi employees are generally subject to 2% employer-paid occupational hazards coverage only.
21 paid days are required each year at the start of entitlement, increasing to 30 paid days after 5 consecutive years of service. The vacation amount is paid in advance under the Saudi Labor Law, as amended 2025.
0.5 month's wage per year applies for each of the first 5 years, followed by 1 month's wage per year after that, with partial years prorated. Resignation reduces the amount to 1/3 after 2 to 5 years, 2/3 after more than 5 and less than 10 years, and the full amount from 10 years.
12 weeks are paid at full pay. Six weeks after childbirth are compulsory, and the other 6 weeks may be distributed within the permitted period, including up to 4 weeks before the expected delivery date.
12% of Saudi employees must be trained or qualified annually by employers subject to the Saudi Labor Law. This obligation is separate from optional learning budgets offered as a competitive benefit.
About our data. Atlas HXM compiles statutory rates and entitlements from official government sources, including the Ministry of Human Resources and Social Development, the Saudi Labor Law, as amended 2025, and the General Organization for Social Insurance, and maintains them in Atlas HXM's country compliance reference with primary sources linked where available.
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