Complete Guide to Hiring in Saudi Arabia

1. Understanding GOSI

The General Organization for Social Insurance (GOSI) is Saudi Arabia's mandatory social insurance programme covering workplace injuries, disabilities, and retirement pensions. Every employer operating in the Kingdom must register with GOSI and contribute on behalf of their employees.

For Saudi nationals, the total GOSI contribution rate is 21.5% of the employee's base salary (capped at SAR 45,000/month). The employer pays 12% and the employee pays 9.5%. For non-Saudi employees, only the 2% occupational hazard contribution applies, paid entirely by the employer.

Registration must be completed within 15 days of an employee's start date. Monthly contributions are due by the 15th of the following month. Late payments incur a 2% penalty per month of delay. Remote& | AI automates GOSI registration and calculates contributions automatically based on each employee's nationality and salary.

2. WPS Compliance

The Wage Protection System (WPS) requires employers to pay salaries through approved Saudi banks using a standardised Salary Information File (SIF). The Ministry of Human Resources and Social Development (MHRSD) monitors WPS submissions to ensure employees are paid on time and in full.

Each SIF file must include the employee's IBAN, salary amount, and allowances in the format specified by the Saudi Arabian Monetary Authority (SAMA). Files must be submitted to your bank before the payment deadline — typically within seven days of the salary due date for companies with 10+ employees.

Non-compliance with WPS can result in suspension of work permits, fines, and reduced Nitaqat status. Remote& | AI generates WPS-compliant SIF files automatically and integrates directly with major Saudi banks to streamline submission.

3. Saudization (Nitaqat)

The Nitaqat programme mandates minimum percentages of Saudi nationals across private-sector companies. Quotas vary by industry sector and company size, ranging from 6% in agriculture to over 70% in certain government-adjacent sectors. Companies are categorised into Platinum, Green (high, mid, low), Yellow, and Red bands based on their Saudization ratio.

Companies in the Green or Platinum bands enjoy benefits such as expedited visa processing and the ability to hire from Yellow and Red band companies. Those in the Red band face restrictions on visa issuance, inability to renew work permits, and potential fines.

Tracking your ratio in real time is critical, especially as you hire or experience turnover. Remote& | AI's compliance dashboard shows your current Nitaqat status, models the impact of planned hires, and alerts you before your ratio drops below threshold.

4. Employment Contracts

Saudi Labour Law requires that all employment contracts be in writing and include specific terms: job title, salary, start date, contract duration (fixed-term or indefinite), working hours, and leave entitlements. Contracts must be in Arabic — a bilingual Arabic/English version is permitted, but the Arabic text prevails in any legal dispute.

Probation periods may not exceed 180 days (extendable by written agreement). During probation, either party may terminate the contract without notice or end-of-service benefits. Fixed-term contracts automatically convert to indefinite contracts if renewed three consecutive times or if the total duration exceeds four years.

Termination rules differ by contract type. For indefinite contracts, either party must provide at least 60 days' written notice (or 30 days if the employee is paid monthly). End-of-service benefits are calculated at half a month's salary for each of the first five years, and one month's salary for each subsequent year. Remote& | AI generates compliant bilingual contracts from templates and calculates end-of-service entitlements automatically.