By Adil Ahmad, Business Setup Consultant at Gulf Corporate Services
Last updated: 24 October 2026
Summary
Saudi labor law gives expatriates written contracts, 48 hour working weeks, 21 to 30 days of annual leave and end of service gratuity of half a month per year for the first five years. The February 2025 amendments extended probation to 180 days, maternity leave to 12 weeks and cut employee notice to 30 days. Complaints are filed online through the labour office and Qiwa.
Saudi Labor Law for Expatriates: The Legal Framework
The Saudi Labor Law, issued by Royal Decree M/51, applies to almost every private sector worker in the Kingdom, Saudi or expatriate. It is enforced by the Ministry of Human Resources and Social Development (MHRSD), and most day to day transactions now run through the Qiwa platform.
Two reforms shape the rules expats live with today:
- The Labour Reform Initiative (2021) let expatriates change jobs at the end of a contract without employer consent, and apply for exit re-entry and final exit visas themselves through Absher.
- The 2025 amendments, which took effect in February 2025, changed probation, notice, maternity and paternity leave, contract renewal and resignation rules. Rödl and Partner’s summary covers them in detail.
Domestic workers such as housemaids and family drivers sit under a separate domestic worker regulation and the Musaned platform, so some figures below do not apply to them.
Employment Contracts for Expats in Saudi Arabia
Every expat contract must be in writing, in Arabic or bilingual, and documented on Qiwa. A good contract states:
- Job title, place of work and start date
- Basic salary, housing and transport allowances
- Working hours, leave and probation period
- Contract type and length
- Notice period and end of service terms
Fixed term vs indefinite contracts. Expat contracts are usually fixed term, often 1 or 2 years. Since 2025, a contract with no stated term is treated as one year from the start date and renews automatically for the same period if you keep working. A “2 years contract in Saudi” therefore ends on its date unless both sides renew it.
Probation. The maximum probation period is now 180 days, up from 90, and it must be written in the contract. Either side can end the contract during probation without end of service pay, unless the contract says otherwise.
Employer costs under Article 40. The employer pays recruitment fees, iqama and work permit fees, renewal costs, fines for late renewal and the worker’s return ticket at the end of the contract. These costs cannot be deducted from your salary. If your iqama is due, our guide to the Muqeem visa check shows how employers track status.
Working Hours and Overtime Rules
- Standard hours: 8 hours a day or 48 hours a week
- Ramadan: 6 hours a day or 36 hours a week for Muslim employees
- Weekly rest: at least one full paid day, usually Friday
- Overtime (Article 107): the normal hourly wage plus 50% of the basic hourly wage
- Time off instead of pay: since 2025, employer and employee can agree on paid time off in place of overtime pay
Senior managers and some roles are exempt from working hour limits, so check your contract.
Leave Entitlements for Expatriates
| Leave type | Entitlement |
|---|---|
| Annual leave | 21 days a year, rising to 30 days after 5 years with the same employer |
| Sick leave (Article 117) | 30 days full pay, 60 days at 75%, then 30 days unpaid in a year |
| Maternity leave | 12 weeks paid, with 6 weeks taken after childbirth |
| Paternity leave | 3 days paid, within 7 days of the birth |
| Marriage leave | 5 days paid |
| Bereavement | 5 days for a spouse, parent or child; 3 days for a sibling |
| Hajj leave | 10 to 15 days paid, once, after 2 years of service |
| Exam leave | Paid days for approved exams |
Maternity leave in Saudi Arabia for expats follows the same rules as for Saudi women, as long as you work under the Labor Law. Whether maternity leave is paid in full or in part has traditionally depended on length of service, so confirm the current rule with HR or MHRSD.
Vacation pay calculation. Annual leave is paid at your full wage, normally basic salary plus fixed allowances, for each day of leave. Unused leave must be paid out when you leave the job.
Wages, WPS and GOSI
- Salaries must be paid in Saudi riyals into a bank account through the Wage Protection System (Mudad).
- Deductions are capped and need your consent or a legal basis.
- Expat workers pay no GOSI contribution. The employer pays 2% of basic salary for occupational hazards cover, so expats are covered for work injuries but do not build a GOSI pension.
- Salary increments are not fixed by law. They depend on your contract and company policy.
There is no general minimum wage for expatriates. A wage of SAR 4,000 is the reference for Saudi nationals counting fully towards Saudization, which is why many employers mix nationalities on payroll.
Changing Jobs, Exit Re-Entry and Final Exit
Since the Labour Reform Initiative, expats have much more control:
- Job change: you can move to a new employer through Qiwa when your contract ends, or earlier in set cases, such as unpaid wages for three months or an expired iqama, without your employer’s consent.
- Exit re-entry visa: you can request it yourself through Absher; your employer is notified electronically.
- Final exit: you can apply for final exit after your contract ends, and you keep your rights to end of service pay.
If you plan to work for yourself instead of an employer, our guide to the freelance visa in Saudi Arabia explains the alternative.
Notice Periods, Resignation and Termination
| Situation | Rule |
|---|---|
| Employee resigns, indefinite contract | 30 days notice |
| Employer terminates, indefinite contract | 60 days notice |
| Expat resigns, fixed term contract | Written notice; employer has 30 days to respond and may delay by up to 60 days for a documented business reason |
| Unfair termination, indefinite contract (Article 77) | Usually 15 days’ wage per year of service, minimum 2 months |
| Unfair termination, fixed term contract | Wages for the rest of the contract, minimum 2 months |
| Dismissal without notice (Article 80) | Only for serious misconduct listed in the law, after investigation |
If your employer cancels your contract unlawfully, keep every message and payslip. They are your evidence.
End of Service Benefits (Article 84)
End of service gratuity is calculated on your last wage, normally basic salary plus fixed allowances as defined in your contract:
- Years 1 to 5: half a month’s wage for each year
- After 5 years: one full month’s wage for each year
- Part years: paid pro rata
If you resign (Article 85):
| Service when you resign | Share of gratuity |
|---|---|
| Less than 2 years | Nothing |
| 2 to 5 years | One third |
| 5 to 10 years | Two thirds |
| 10 years or more | Full gratuity |
Worked example: with a wage of SAR 8,000, five years of service gives SAR 20,000. Seven years gives SAR 36,000 if the employer ends the contract, but resigning at seven years gives two thirds, or SAR 24,000.
Women who resign within six months of marriage or three months of childbirth, and workers who leave for reasons beyond their control, are entitled to the full award (Article 87).
How to File a Complaint in the Saudi Labor Office Online
- Try to resolve it internally with HR in writing.
- File a labour case online through the MHRSD and Qiwa labour dispute services with your iqama number and contract details.
- Attend amicable settlement. The labour office invites both sides to a settlement session.
- Go to the Labour Court if there is no agreement. The case is referred within about 21 working days.
- Call 19911 for guidance in several languages, including Hindi, Urdu, Malayalam and Bengali.
Domestic workers use the domestic workers disputes committee at the labour office and the Musaned platform. The Indian Embassy’s guide to the Saudi grievance process is a useful walk through for any nationality.
Retirement Age for Expats in Saudi Arabia
The Labor Law does not set a separate retirement age for expatriates, and expats do not receive a GOSI pension. In practice, retirement is set by contract, commonly around 60, and work permits for older workers can face extra conditions. Your end of service gratuity is your main retirement payment, so check it is calculated correctly before you leave.
Saudi Labor Law for Employers Hiring Expatriates
If you are setting up a company in the Kingdom, the same rules decide your payroll costs and licence renewals:
- Nitaqat (Saudization): your company must hire a set share of Saudi nationals by sector and size. Falling into a low band can block new work permits and iqama renewals.
- Qiwa and Mudad: contracts, work permits and salaries must all be recorded online.
- Housing and transport: since 2025, employers must provide accommodation and transport or pay an allowance.
- Equal treatment: discrimination by nationality, gender, age or disability is prohibited.
- Penalties: fines are charged per worker for violations such as late salaries or unrecorded contracts.
Our Saudi GRO services handle Qiwa, Muqeem and work permits, and our legal services team drafts compliant contracts. If you are still planning your company, see our guides to registering a company in Saudi Arabia and the cost of setting up a business in Saudi Arabia. Recruitment firms need a worker services licence.
Common Mistakes Expats Make
- Signing a contract that is not documented on Qiwa
- Resigning at 4 years and 11 months, just before the two thirds gratuity band
- Leaving on final exit before end of service pay is settled
- Accepting cash salary instead of WPS bank transfer
- Missing the deadline to file a labour claim after the contract ends
Expert Tip from Adil Ahmad
From the employer files we handle, most disputes start with a vague contract, not bad intent. Before you sign, ask HR to confirm in writing which allowances count towards your end of service wage. That single line decides whether your gratuity is calculated on SAR 6,000 or SAR 9,000, and it saves months of argument later.
Frequently Asked Questions
1. What are the main Saudi labor laws for expatriates?
Written contracts on Qiwa, 48 hour weeks, 21 to 30 days annual leave, overtime at 150%, end of service gratuity and the right to change jobs at contract end.
2. How is end of service calculated in Saudi Arabia?
Half a month’s wage per year for the first 5 years, then a full month per year. Resigning cuts this to one third or two thirds depending on service.
3. How many days is maternity leave in Saudi Arabia for expats?
12 weeks under the 2025 amendments, the same as for Saudi women.
4. What is the maximum probation period?
180 days, if it is written in the contract.
5. How do I file a complaint at the Saudi labor office online?
Raise a labour case through the MHRSD or Qiwa labour dispute service, attend amicable settlement, and the case moves to the Labour Court if unresolved.
6. Can I leave Saudi Arabia without my employer’s permission?
Yes. Since 2021 you can request exit re-entry or final exit through Absher, with the employer notified.
7. Do domestic workers get end of service in Saudi Arabia?
Yes, under the domestic worker rules, usually one month’s wage after four years of service. Contracts are managed through Musaned.
8. Can I change employers without an NOC?
Yes, at the end of your contract through Qiwa, and earlier in set cases such as unpaid wages.
Planning to Hire or Invest in Saudi Arabia?
Gulf Corporate Services helps investors set up compliant companies, hire expatriate staff and manage Qiwa, GOSI and Saudization. Explore our business setup in Saudi Arabia service, the investor visa in Saudi Arabia, Premium Residency and the Saudi business visa. We also support business setup in Dubai. Talk to our business setup consultants for a free consultation.
