Hire and pay employees in Saudi Arabia
GOSI, WPS, Saudization, and Saudi Labour Law compliance — all automated. Run payroll in SAR with full regulatory coverage from day one.
AT A GLANCE
Saudi Arabia employment facts
GOSI COMPLIANCE
Automated GOSI calculations and filing
The General Organization for Social Insurance (GOSI) requires contributions from both employers and employees. Rates differ for Saudi nationals (21.5% total: 12% employer, 9.75% employee) and expatriates (2% employer-only for occupational hazards). Remote& automatically calculates, deducts, and reports GOSI contributions every payroll cycle, ensuring you never miss a filing deadline.
- Automatic Saudi vs. expat rate differentiation
- Monthly GOSI contribution reports generated automatically
- Real-time tracking of contribution caps and thresholds
- Annuity and occupational hazard insurance calculations
WAGE PROTECTION SYSTEM
WPS-compliant payroll every cycle
Saudi Arabia's Wage Protection System (WPS) requires all employers to pay salaries through approved banking channels with electronic records. Remote& generates WPS-compliant salary files in the format required by the Ministry of Human Resources, ensuring timely payment to every employee's bank account and full traceability for audits.
- WPS file generation in the required MOHRS format
- Automated salary transfers through approved banks
- Full audit trail for every payment
- Alerts for missed or late payment deadlines
SAUDIZATION TRACKING
Stay compliant with Nitaqat quotas
The Nitaqat Saudization program categorizes companies based on their ratio of Saudi nationals to total employees. Your Nitaqat band directly affects your ability to issue visas, renew work permits, and operate freely. Remote& monitors your Saudization ratio in real time and alerts you before you fall below required thresholds for your industry category.
- Real-time Nitaqat band monitoring dashboard
- Alerts when approaching quota thresholds
- Headcount planning tools by nationality
- Industry-specific quota calculations
SAUDI LABOUR LAW
Employment contracts and end-of-service built in
Saudi Labour Law governs everything from employment contracts and working hours to termination and end-of-service benefits (ESB). Remote& generates compliant employment contracts, calculates ESB based on tenure and final salary, and manages leave entitlements automatically. Employees receive 21 days of annual leave for the first five years and 30 days thereafter.
- Compliant employment contract templates
- Automatic end-of-service benefit calculations
- Leave entitlement tracking (annual, sick, Hajj leave)
- Working hours and overtime compliance
FAQ
Frequently asked questions about hiring in Saudi Arabia
For Saudi nationals, the total GOSI rate is 21.5% of eligible salary: employers contribute 12% (9.75% annuity + 2% occupational hazards + 0.25% SANED) and employees contribute 9.75% (all annuity). For expatriates, only the employer contributes 2% for occupational hazard insurance. Contributions are capped at a maximum monthly insurable salary of SAR 45,000.
Under Saudi Arabia's Wage Protection System, employers must pay employee salaries within the first week of the month following the month worked. Delays beyond this window are flagged in the Ministry of Human Resources system. Repeated violations can result in suspension of services, fines, and restrictions on issuing new work permits.
End-of-service benefits are calculated based on the employee's last drawn salary and length of service. For the first five years, employees receive half a month's salary for each year. For each year beyond five, they receive one full month's salary. If the employee resigns (rather than being terminated), they receive one-third of the ESB after 2-5 years of service, two-thirds after 5-10 years, and the full amount after 10+ years.
Nitaqat classifies companies into bands (Platinum, Green High, Green Medium, Green Low, Yellow, Red) based on their Saudization ratio. The required ratio varies by industry and company size. For example, retail businesses with 10-49 employees may need at least 35% Saudi nationals, while IT companies of the same size may need 25%. Companies in the Red band face restrictions on visa issuance, work permit renewals, and changes of profession.
To sponsor an expatriate employee's Iqama (residency permit), the employer must have a valid commercial registration (CR), be compliant with Nitaqat Saudization requirements, and hold a block visa allocation. The process involves obtaining a work visa from the Ministry of Foreign Affairs, completing medical examinations upon arrival, and registering the employee with GOSI. Iqamas must be renewed annually, and employers are responsible for renewal fees and exit/re-entry visa costs.
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