
Saudi Arabia is the Middle East’s largest economy. Oil and petrochemicals remain its backbone, yet “Vision 2030” reforms are rapidly expanding tourism, logistics, and technology. Recent labour‑law amendments aim to modernise hiring practices, increase private‑sector efficiency, and raise Saudi‑national participation.
Employment agreements must be in Arabic (bilingual versions are common) and are either fixed‑term or indefinite. If the duration is omitted—or the employee keeps working five working days beyond a fixed expiry—the contract is treated as indefinite.
Probation may run up to 90 days and, with the employee’s written consent, once‑only to 180 days in total. Either side may end the relationship on one day’s written notice (or the notice specified in the contract), with no severance.
Standard hours are eight a day and forty‑eight a week; Muslim staff work six‑hour days and thirty‑six‑hour weeks during Ramadan. Time beyond these limits counts as overtime and must be paid at 150 percent of the basic hourly rate.
Employees receive at least 21 days of fully paid annual leave, rising to 30 days after five consecutive years with the same employer. Holiday should be taken in the year earned, though it may be carried into the following year by mutual agreement and used no later than the year‑end.
Within any twelve‑month span a worker may take up to 120 sick‑leave days: the first thirty on full pay, the next sixty at 75 percent, and a final thirty unpaid. A doctor’s certificate must normally be presented within three days of falling ill.
For Saudis the official minimum for full Saudization credit is SAR 4,000 per month; no statutory floor applies to expatriates. Wages must be transferred through the Wage Protection System at least monthly, with payslips showing all deductions.
Private‑sector employees enjoy four‑day breaks for Eid al‑Fitr (starting 30 Ramadan) and Eid al‑Adha (starting 9 Dhu al‑Hijjah), plus paid days off for Founding Day on 22 February and National Day on 23 September. Work performed on these days is paid at the normal rate plus 100 percent.
For Saudi staff the employer pays 9 percent into the pension fund, 0.75 percent into the unemployment (SANED) scheme, and 2 percent for occupational hazards, totalling 11.75 percent of monthly wages. For expatriates only the 2 percent occupational‑hazard charge is due.
There is no personal income tax. Saudi nationals contribute 9 percent of salary to pensions and 0.75 percent to SANED (9.75 percent combined). Expatriates make no social‑insurance contributions but may fall under the separate expatriate‑levy regime, which the employer often bears.
Monthly‑paid employees on indefinite contracts are entitled to sixty days’ notice; others receive thirty. Earlier termination of a fixed‑term contract generally requires payment of the wages that would have been earned to expiry, unless both parties agree otherwise.
All employees qualify for an end‑of‑service award: half a month’s wage for each of the first five years of service and a full month’s wage for every subsequent year. Resignations after two, five, and ten years trigger one‑third, two‑thirds, or the full award respectively. Payment must be made within seven days of the last working day.
International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.
Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.
Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.
Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.
Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.
Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.
Acvian provides a diverse range of benefits, including but not limited to:
We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.
Acvian can provide private health insurance options as part of its comprehensive employee benefits package.
The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.
While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.
Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.
Businesses typically need EOR and PEO services when they:
Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.
Yes, Acvian provides both permanent and fixed-term employment contracts, with the possibility of extension. After the second extension, the contract becomes indefinite.
Employees can view their payroll details through the monthly payslips they receive and also via the Acvian platform.
Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.
Under EOR, Acvian manages the payroll process by:
Explore the details here.
Yes, Acvian provides comprehensive support for expatriate EOR workers, including:
Explore in details here.
Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:
After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.
The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.
Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.
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