Employer of record in Saudi Arabia
22 sourced figures on hiring in Saudi Arabia, drawn from 10 sources and normalized for comparison: statutory rules, employer cost and exactly what an EOR covers locally. Every figure is dated.
Hiring here: moderately complex, inexpensive to employ, and fast to hire via EOR.
Employer of record in Saudi Arabia: the statutory snapshot
The headline employer costs, pay floor and worker protections for hiring in Saudi Arabia through an employer of record, each figure sourced and dated. 40 EOR providers cover Saudi Arabia.
| Minimum wage | SAR 4,000/mo | WageIndicator Foundation, 2024-11-19 |
|---|---|---|
| Employer social security | 11.75% | ISSA Country Profiles, 2024-01-01 |
| Corporate tax | 20% | PwC Worldwide Tax Summaries, 2026-07-29 |
| Average income tax | 0% | OECD, 2026-01-01 |
| Notice period | 8.6 weeks | National government, 2026-09-12 |
| Severance | 15.2 weeks | World Bank Employing Workers / B-READY, 2019-05-01 |
| Annual leave (minimum, once eligible) | 15 | National government, 2026-09-12 |
| Public holidays | 9 | National government, 2026-09-12 |
As of 2026-10-16. Each value is the winning figure from primary and harmonized sources, resolved by a documented priority chain. Full record with provenance below.
Reading the data
What the figures say about Saudi Arabia
The statutory minimum wage sits at SAR 4,000 per month, while the average monthly wage of employees reached SAR 6,748 per month as of 2022, giving employers a concrete anchor for benchmarking offer letters. On top of base pay, employers carry an 11.75% social security contribution, with employees contributing a further 9.75%, and corporate profits are taxed at 20%. Statutory annual leave is 21 days, supplemented by 4 public holidays, and the payroll cycle runs monthly with no 13th salary obligation. Maternity leave stands at 12 weeks, while paternity leave is just 0.4 weeks. When a hire ends, employers must account for a statutory notice period of 8.6 weeks and severance of 15.2 weeks, making exit costs a meaningful line item in workforce planning. The labour force totals 18.4 million people against an unemployment rate of 3.04%, and the retirement age is notably low at 47 years, which has direct implications for workforce tenure and pension exposure.
Where to start
Three ways to hire in Saudi Arabia
You are the employer. Lowest per head cost at scale, months to establish.
You direct the work, the provider's local entity is the employer on paper. Compliant in days.
See the 40 providers below ↓Not your employee. Fastest and cheapest, with misclassification exposure.
The full record
Every figure behind the snapshot
Not a guide, a record: 22 figures for Saudi Arabia from 10 sources, last refreshed 2026-10-16. Each value carries its source and the date it was pulled. Hover any provenance tag for the full chain.
Average monthly earnings in Saudi Arabia by occupation (2022)
Gross monthly earnings of employees per ISCO-08 major occupation group, in SAR — the official ILOSTAT survey figures, not estimates. Use them to sanity-check an offer before an EOR quote turns it into total employer cost.
| Occupation group | Monthly (SAR) | ≈ USD |
|---|---|---|
| All occupations | 6,748 | $1,799 |
| Managers · ISCO 1 | 15,654 | $4,174 |
| Professionals · ISCO 2 | 11,696 | $3,119 |
| Technicians and associate professionals · ISCO 3 | 8,205 | $2,188 |
| Clerical support workers · ISCO 4 | 6,456 | $1,722 |
| Service and sales workers · ISCO 5 | 3,826 | $1,020 |
| Skilled agricultural, forestry and fishery workers · ISCO 6 | 1,840 | $491 |
| Craft and related trades workers · ISCO 7 | 2,818 | $751 |
| Plant and machine operators and assemblers · ISCO 8 | 2,506 | $668 |
| Elementary occupations · ISCO 9 | 2,291 | $611 |
Source: ILOSTAT (EAR_EMTA, employees, both sexes), reference year 2022. Survey earnings differ from statutory minimums above.
What the average salary takes home in Saudi Arabia
The employee keeps an estimated 90% of gross at the average wage. For an employer, this is the gap between the offer you quote and what your hire actually receives.
Illustration at the ILOSTAT average wage using statutory rates (ISSA Country Profiles; OECD) applied to gross pay. Individual allowances, deductions and regional rates vary — not tax advice.
// recent updates
What changed in Saudi Arabia
Checked against official sources on 16 October 2026
No rule changes recorded since we began logging them.
Every figure is sourced and dated. How we verify the data →
The differentiator
What an EOR handles in Saudi Arabia
An EOR removes the entity and the payroll machinery. It does not remove your obligations as the people manager.
Provider × country
Who can employ in Saudi Arabia
40 providers operate an EOR in Saudi Arabia, ranked by Select Score.
Comparing EOR options for Saudi Arabia?
Run a side-by-side on the providers that actually operate there.