The ultimate guide for employers to employee compensation and benefits in Saudi Arabia. Employee benefits and compensation are important in attracting and retaining top talent in Saudi Arabia. With mega projects like Neom and a youthful population entering the workforce, the Kingdom presents tremendous opportunities for multinationals.
However, navigating the regulatory landscape around benefits and pay can be complex for newcomers. You get it wrong and risk fines, high turnover, and reputational damage. But get it right? You secure a productive workforce motivated to drive your Saudi expansion to new heights. The following information will upgrade your knowledge and confidence, whether you are just getting started or looking to fine-tune an existing Saudi compensation strategy.
Saudi Arabia has comprehensive labor laws that mandate several statutory benefits employers must provide. Understanding these required offerings ensures compliance. Per Saudi labor law, Muslim employees are entitled to six-hour working days during the holy month of Ramadan. This reduced schedule allows them to have sufficient time for prayers and fasting. According to the leaves policy the statutory minimum annual leave increases incrementally based on years of service:.
It must be granted within 12 months; otherwise, the company owes the employee cash instead of leave. Employers must provide time off for Saudi public holidays, announced at the start of each Hijri calendar year.
There are usually paid public holidays. However, a medical certificate is typically required. Female employees are granted ten weeks of fully paid maternity leave. This covers six weeks before the expected birth date and four weeks after. In the unfortunate event of the death of an employee's spouse, relative, or family member, they are granted five days of fully paid bereavement leave.
