Insights
How to Hire Employees in Saudi Arabia (2026): A Step-by-Step Guide for Foreign Employers
Insights · By Chen ChunJie · Updated 31 October 2026
To hire someone in Saudi Arabia you need a Saudi employer: your own licensed company, or a local employer that employs the person for you. That employer documents the contract on the Qiwa platform, registers the employee with GOSI, provides health insurance where it is required and pays salary in riyals through the Mudad wage protection system. A foreign national also needs a work visa, a work permit and an iqama, and every hire is affected by Saudization quotas. These are the steps in the order they happen.
Last reviewed in October 2026 against the Saudi Labor Law, the 2025 amendments and the 2026 Saudization rules. General information, not legal advice.
Step 1: Decide who will employ the person
| Route | When it fits | What to know |
|---|---|---|
| Your own Saudi company | A growing team, Saudi customers or local invoicing | An investment licence from the Ministry of Investment and a commercial registration come first, then GOSI, Qiwa and Mudad accounts and your own Saudization quota |
| Employer of record | A first hire or small team, with no Saudi entity | A local employer employs the person and runs payroll, where the role can be arranged this way under Saudi rules. Employer of Record in Saudi Arabia |
| Independent contractor | A defined project delivered independently, often from outside Saudi Arabia | Supplying workers to another business without the right licence is prohibited, so check the arrangement first. On-Demand Talent in Saudi Arabia |
Saudi law does not use the term employer of record. A foreign national may only work for the employer that sponsors their work permit, except through channels the law allows, and supplying workers to another business requires a licence from the Ministry of Human Resources and Social Development (MHRSD). Since 26 January 2026, Ministerial Resolution 60339 has set out when an outsourced service needs a contract on the Ajeer platform before work starts. A provider should tell you, in writing, which entity will employ your hire and on what basis. Source: Outsourced labour and Ministerial Resolution 60339 (BSA).
Step 2: Saudi national or foreign national?
A Saudi national is registered with GOSI for pension, unemployment and occupational hazards cover, and counts towards the employer’s Saudization quota. GOSI contributions are higher for Saudi nationals than for foreign employees.
A foreign national needs a work visa, a work permit and an iqama (residence permit) before starting work, plus health insurance. Since August 2025, work permits are classified by skill level (high-skilled, skilled or basic), which affects the requirements for the role. Some occupations are reserved for Saudi nationals or have their own Saudization quotas.
A foreign national already living in Saudi Arabia may be able to move employer through Qiwa, depending on their current contract and status. For the work-visa route, see Hire Foreign Employees in Saudi Arabia.
Step 3: Set the salary package
Salary packages are usually split into basic pay, a housing allowance and a transport allowance. The split matters: GOSI contributions are calculated on basic pay plus housing, up to SAR 45,000 a month, and the end-of-service benefit is based on the last wage.
There is no general minimum wage in the private sector, but a Saudi employee only counts fully towards the Saudization quota at a monthly wage of SAR 4,000 today, SAR 5,000 from 25 April 2027 and SAR 6,000 from 25 April 2028. There is no personal income tax on salaries. For the employer’s full cost, see our guide to Saudi Arabia EOR cost. Source: Nitaqat wage thresholds for 2027 and 2028 (Gulf News).
Step 4: Write the contract on Qiwa
| Point | The rule |
|---|---|
| Platform | Contracts are documented on Qiwa using the unified employment contract, which is enforceable through the Najiz system |
| Language | Arabic is required; where another language is also used, the Arabic text prevails |
| Contract term | Contracts for foreign nationals are fixed-term; if no term is written, the contract runs for one year from the start date |
| Probation | Up to 180 days, in writing; Eid holidays and sick leave do not count towards it |
| Notice | For an open-ended contract, at least 60 days from the employer for monthly-paid employees and 30 days from the employee |
| Working time | Up to 8 hours a day or 48 hours a week; 6 hours a day for Muslim employees during Ramadan |
Step 5: Onboard the employee
- Signed contract approved on Qiwa
- Health insurance in place before the start date where it is required
- GOSI registration from the first day of work
- Work visa, work permit and iqama issued for a foreign national, and the expat levy paid
- Bank account details for salary payment through Mudad
- Job title on the work permit matching the work actually done
- Leave policy, working hours and the weekend (usually Friday and Saturday) explained in writing
Government processing times vary, especially for work visas. With an employer of record, the start date is agreed in the written proposal once the route for your hire is confirmed.
Step 6: Pay and manage the employee
Salary is paid at least monthly in riyals through Mudad, which reports payments to the authorities; late or missing pay triggers notices and, after two months, restrictions on the employer’s services. GOSI contributions are paid monthly. Annual leave is 21 days a year, rising to 30 days after five years, and overtime is paid at the hourly wage plus 50% of basic pay. For how leave, Ramadan and the working week shape day-to-day management, read our guide to work culture in Saudi Arabia. Source: Mudad wage protection rules (GPA).
Step 7: Ending employment
The employer gives the notice required by the contract and the law, pays the final salary, any unused leave and the end-of-service benefit, and closes the GOSI and Qiwa records. For a foreign national, the residence and work permit status must also be closed or transferred. The end-of-service benefit is half a month’s wage for each of the first five years and a full month’s wage for each year after that, reduced if the employee resigns before ten years.
With NNRoad, an employee exit starts with a Saudi-specific review of notice, end-of-service pay and permit closure before anything is said to the employee.
Checklist: hiring in Saudi Arabia
- Employing entity confirmed in writing
- Saudi national or foreign national route chosen
- Saudization impact and any reserved occupation checked
- Salary package split into basic, housing and transport
- Unified contract approved on Qiwa, in Arabic
- Probation, notice and contract term agreed
- Health insurance, GOSI and Mudad set up
- Work visa, work permit and iqama for a foreign national
- Full-year cost, including the end-of-service accrual, approved
Questions about hiring in Saudi Arabia
Can a foreign company hire employees in Saudi Arabia without a local entity?
Yes, through a local employer such as an employer of record, where the role can be arranged this way under Saudi rules. The provider should confirm in writing which entity employs the person.
How long does it take to hire someone in Saudi Arabia?
It depends on the route. Hiring a Saudi national is mainly the contract, Qiwa and GOSI steps; a foreign national also needs a work visa, a work permit and an iqama, and government processing times vary.
Do employment contracts in Saudi Arabia have to be in Arabic?
Yes. Contracts and records must be in Arabic. Where another language is also used, the Arabic text prevails.
How long can a probation period be in Saudi Arabia?
Up to 180 days, agreed in writing. Eid holidays and sick leave are not counted.
What is Saudization and how does it affect hiring?
Under the Nitaqat programme, employers must keep a share of Saudi nationals in their workforce, and some occupations have their own quotas or are reserved for Saudi nationals. It affects whether, and at what cost, a foreign national can be hired.
Do employees pay income tax in Saudi Arabia?
No. There is no personal income tax on salaries. Saudi nationals pay their GOSI share through payroll.
Hiring your first employee in Saudi Arabia?
Tell us about the role, the person and the start date. We will confirm the route and send a written proposal with the full-year cost.
Related
How our local employer employs and pays your Saudi Arabia hire.
GOSI, the expat levy, the end-of-service benefit and worked examples.
The working week, Ramadan, holidays and leave for managers.
Sources: Saudi Labor Law amendments, Royal Decree M/44 (King & Spalding summary); GOSI pension rates for new contributors (Argaam); PwC Worldwide Tax Summaries, Saudi Arabia: social security and expat levy; Nitaqat wage thresholds for 2027 and 2028 (Gulf News); Saudisation in 2026 and 2027 (Al Tamimi); Outsourced labour and Ministerial Resolution 60339 (BSA); Mudad wage protection rules (GPA); Unified employment contract on Qiwa (Clyde & Co). Also: the Saudi Labor Law (Royal Decree M/51), the Social Insurance Law, the Cooperative Health Insurance Law and MHRSD Ministerial Resolution 60339. Reviewed October 2026; general information, not legal advice.