Staff and visas in Saudi Arabia

01Contracts

Employment contracts are written, documented on the Qiwa platform and based on the unified form. Documented contracts with an execution number are enforceable.

• The Labour Law (Royal Decree M/51 of 2005) sets minimum terms that a contract cannot reduce. Royal Decree M/44 amended it with effect from February 2025.
• A phased Unified Employment Contract programme started on 6 October 2025. Fixed-term contracts are covered on renewal from 6 March 2026 and indefinite contracts from 6 August 2026.
• Non-Saudis are hired only on fixed-term contracts. A foreign worker's contract with no stated duration counts as one year.
• A Saudi on a fixed-term contract becomes indefinite after the contract is renewed three times or after four years.
• Probation is up to 180 days if the contract says so. Either party ends the contract in probation with no notice and no end-of-service payment.

02Notice and termination

On an indefinite contract with monthly pay, the employer gives 60 days' notice and the employee gives 30 days. Notice needs a valid reason.

• Either side gives 30 days' notice when pay is not monthly.
• A party who skips notice pays wages for the notice period.
• Dismissal without notice is allowed only for listed causes and after the worker can answer the charge.
• Unlawful termination carries compensation of 15 days' wage per year of service on an indefinite contract, or pay for the rest of the term on a fixed-term contract. The minimum is two months' wages.
• A resignation is treated as accepted if the employer does not reply within 30 days.
• The final settlement is due within one week of the end of employment, or within two weeks on resignation.

03Working time and weekend

Working time is 8 hours a day and 48 hours a week. The statutory weekly rest day is Friday.

• Ramadan: Muslim workers have 6 hours a day and 36 hours a week. The Hijri calendar sets Ramadan and shifts it about 11 days earlier in the Gregorian year each year.
• Overtime: paid at the hourly wage plus 50% of the basic hourly wage. Compensatory leave can replace it with the worker's agreement. The annual overtime ceiling is 720 hours.
• Official holidays: work on an official holiday counts as overtime.
• Weekly rest day: Friday, unless another day is agreed and notified to the labour office. It cannot be paid out in cash.
• Weekend: ministries and SAMA have had a Friday and Saturday weekend since 29 June 2013. The Labour Law sets no second rest day for the private sector.

04Leave and public holidays

Annual leave is 21 days, rising to 30 days after five consecutive years. Unused leave is paid on exit.

Paid public holidays

05End-of-service award

The employer pays an end-of-service award as a lump sum on termination. The right cannot be waived.

• The award is half a month's wage for each of the first five years and one month's wage for each later year.
• It is based on the last wage, including allowances such as housing and transport. Part years are prorated.
• A termination in probation carries no award.

Award on resignation

06Wages and unions

Wages are paid by bank transfer under the Wage Protection Programme. There are no trade unions.

• Salaries are paid through Saudi bank accounts.
• A worker enforces unpaid wages through the Najiz platform after 30 days of non-payment or 90 days of part payment.
• Works committees exist for Saudi staff and welfare committees exist for social matters. HRSD represents workers' interests.

07Social insurance

No personal income tax applies to employment income. Social insurance contributions are charged monthly on basic pay plus housing, up to SAR 45,000 a month.

The Social Insurance Law of 3 July 2024 sets the phased annual step-ups for Saudis. The General Organisation for Social Insurance (GOSI) runs the system.

08Work permit levy and dependant fee

The employer pays a work permit levy per foreign worker per month. It is SAR 800 where foreign staff outnumber Saudi staff and SAR 700 where they do not.

• Work permit levy: SAR 700 a month for each foreign worker where the number of foreign workers does not exceed the number of Saudi workers. SAR 800 a month where it does. The levy is collected when the work permit is issued or renewed.
• Work permit service fee: SAR 100 to issue or renew a work permit for an expatriate worker.
• Dependant fee: SAR 400 a month for each dependant of an expatriate.
• Iqama fees: the employer bears the fees to issue and renew the iqama and the work permit (Labour Law, Article 40).
• Special economic zones: employees tied to a zone licence are relieved of the dependant fee.

09Saudisation (Nitaqat)

Every entity is rated under the Developed Nitaqat Programme. The required Saudi share rises with headcount and differs by sector and profession.

• The programme applies from April 2026 to December 2028 under Ministerial Resolution 182495 of 23 May 2021. The procedural guide was issued on 22 January 2026.
• The former exemption for entities with fewer than six employees has gone.
• Targets follow a formula, not fixed percentages. Measurement is by entity across all branches carrying out the same economic activity.
• The bands are Platinum, High Green, Medium Green, Low Green and Red.
• A Saudi counts in full from a monthly wage of SAR 4,000. A wage from SAR 3,000 to SAR 4,000 counts as half. A wage below SAR 3,000 does not count.

Profession quotas (selected)

Consequences of the bands

• Low Green: stops new visas and profession changes.
• Red: stops new visas and profession changes. It also stops the issue and renewal of work permits for foreign staff and blocks service transfers.

Reduced duties

• A licensed RHQ has a 10-year Saudisation exemption.
• Special economic zones allow adjusted Saudisation targets for specialised technical roles in the first five years. This is not a blanket exemption.

10Visas and residence

A foreign employee's residence permit (iqama) is tied to the employer. The employer applies for the work visa, then the work permit, then the iqama.

• Renewal runs through the Absher and Muqeem platforms.
• Work permits are classed by skill level (high skill, skilled and basic) since July 2025. The registered profession must match the actual job.
• Since early 2026 one physical residence card is valid for five years. Residence status is renewed annually. The card is delivered by post.
• After a fixed-term contract ends or is terminated, a 60-day grace period applies to find a new sponsor, renew or arrange final exit.
• Spouses and adult children who qualify can apply for their own work permits.
• RHQs receive unlimited employee visas.

Premium Residency

• Premium Residency has five categories: special talent, gifted, investor, entrepreneur and real estate owner. Each carries a fee of SAR 4,000.
• Two plans are not tied to a category. A limited-duration plan costs SAR 100,000 for a one-year term and is renewable. An unlimited-duration plan costs SAR 800,000.
• The real estate category needs residential property worth at least SAR 4 million. It has been open since January 2026.
• Premium Residency holders need a Qiwa work permit costing SAR 100 from June 2026.
• The MISA Strategic Investor Program includes premium residency facilitation.