Saudi Arabia's Labour Law (Royal Decree M/51) protects all employees, Saudi and expat alike. Here's what you're entitled to — and how to enforce it.
Saudi Labour Law sets minimum standards for all employees. Your contract may provide more — it cannot provide less.
8 hours per day, 48 hours per week (6 days). Reduced to 6 hours/day and 36 hours/week during Ramadan for Muslim employees.
Minimum 21 days paid annual leave per year. Increases to 30 days per year after 5 continuous years of service.
Eid Al-Fitr (4 days) and Eid Al-Adha (4 days) plus Saudi National Day (1 day) and Saudi Founding Day (1 day).
Overtime work is compensated at 150% of the standard hourly rate (1.5× base pay). Weekend work may attract higher rates depending on the employment contract.
30 days sick leave at full pay, then 60 days at 75% pay, then 30 days unpaid per year. Medical certificate required after 3 days.
10 weeks paid maternity leave (4 weeks before birth, 6 weeks after), extended to 4 months for complications. Fully paid by employer.
End-of-service gratuity is one of Saudi Arabia's most significant employee rights. It's calculated based on years of service and your final basic salary — not total package.
| Years of Service | Entitlement Rate | Based On |
|---|---|---|
| Under 2 years | No entitlement | — |
| 2 to 5 years (if employee resigns) | 1/3 of EOSG | Final basic salary |
| 5 to 10 years (if employee resigns) | 2/3 of EOSG | Final basic salary |
| Over 10 years (resignation) | Full EOSG | Final basic salary |
| Any length (dismissed or contract ends) | Full EOSG | Final basic salary |
Full EOSG = (Final monthly basic salary / 30) × (15 days × years 1–5) + (Final monthly basic salary / 30) × (30 days × years over 5)
Example: 7 years service, SAR 15,000 basic salary:
5 years × 15 days = 75 days = SAR 37,500
2 years × 30 days = 60 days = SAR 30,000
Total EOSG = SAR 67,500
EOSG is calculated on basic salary only — not housing allowance, transport allowance, or other benefits. This is why the split between basic salary and allowances matters.
Many employers set basic salary low (e.g. SAR 8,000 of a SAR 20,000 package) to reduce EOSG liability. You can negotiate a higher basic salary — it benefits you at end of service but has no tax impact (there's no income tax in Saudi Arabia).
EOSG must be paid within your final month of employment. If your employer delays, you can file a complaint with MHRSD through the Musaned portal or Qiwa platform.
Saudi Labour Law distinguishes between fixed-term and indefinite contracts. The rules for notice, dismissal, and compensation differ between them.
Minimum 30 days written notice for employee-initiated resignations on indefinite-term contracts. Minimum 60 days written notice for employer-initiated terminations. If notice is not given, the terminating party compensates with salary in lieu for the full notice period.
If dismissed without valid cause, employee is entitled to additional compensation of 2 months' salary per year of service (on top of EOSG).
Theft, assault, intoxication, disclosing confidential information, 3+ days unauthorised absence in a month, or a court conviction.
If terminated before contract end without cause, employee receives compensation for remaining contract period.
Reduced EOSG applies (see table above). Employee should still give reasonable notice as per contract terms.
If a fixed-term contract is renewed twice, or the employee works beyond its end without a new contract, it becomes indefinite.
Saudi Arabia has a clear dispute resolution process. Most disputes are resolved quickly through mediation — full litigation is rare.
File a complaint via the Qiwa platform (qiwa.sa). Your employer has 21 days to respond.
Ministry of Human Resources mediates. A settlement meeting is scheduled within 21 days. Most cases resolve here.
If mediation fails, the case is referred to the Labour Courts. Proceedings are in Arabic — get a legal representative.
Labour Court decisions can be appealed to the Court of Appeals within 30 days of judgement.
Keep copies of your employment contract, pay slips, and any written communications with your employer. If your employer is not paying your salary on time, the WPS (Wage Protection System) creates an automatic record — MHRSD can access this data in any dispute.
Saudi labour regulations are updated regularly under Vision 2030 reforms. We'll notify you of changes that affect expat workers.
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