Can I run payroll in Saudi Arabia without a local entity?

Yes. Through an Employer of Record (EOR), Gracemark employs your talent under Saudi Arabia labor law and runs local payroll, no entity required.

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Payroll in Saudi Arabia

Payroll in Saudi Arabia runs in SAR (Saudi riyal). Monthly payroll is standard and typically must be processed via the Wage Protection System (Mudad). No statutory 13th-month bonus is mandated. Statutory employer contributions apply. Gracemark operates it end-to-end, humans, not tickets.

Get a Saudi Arabia payroll quote Paying an existing team there? Tell us the headcount, email or phone is enough.

Currency

SAR, Saudi riyal

Payroll cycle

Monthly payroll is standard and typically must be processed via the Wage Protection System (Mudad).

Working week

Standard working hours are 48 hours per week (8 hours/day), reduced to 36 hours during Ramadan for Muslim employees, with overtime paid at a minimum 50% premium under the Labour Law.

Minimum wage

Saudi Arabia applies a minimum wage requirement for Saudi nationals in the private sector under Saudization rules (commonly cited around SAR 4,000/month for Nitaqat purposes); there is no uniform statutory minimum wage for expatriate workers, whose pay is set by contract.

13th-month

No statutory 13th-month bonus is mandated.

Employer cost

Under GOSI's new Social Insurance Law effective July 2024, employer contribution rates are being phased upward, with maximum employer rates reaching around 13.75% by around 2028 for the new system, alongside continuing rates near 11.75%-12% for employees under the legacy system.

Probation

Probation period is capped at 90 days, extendable once by mutual written agreement up to 180 days total.

Notice period

Notice periods are generally 60 days for monthly-paid employees (30 days for others), and end-of-service gratuity (half a month's pay per year for the first five years, then one month per year thereafter) is payable to eligible employees.

Two ways to run payroll in Saudi Arabia

Own-entity payroll

For long-term presence in Saudi Arabia. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Western Asia time.

EOR-run payroll

No entity in Saudi Arabia? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 2–3 weeks, no local incorporation.

Compliance essentials in Saudi Arabia

Saudization (Nitaqat) quotas drive local-hiring requirements
End-of-service award accrues in place of a pension
GOSI contributions differ for Saudis vs expats
Reduced working hours during Ramadan
Visa sponsorship and Qiwa platform compliance

Get a payroll quote for Saudi Arabia

Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.

Get your Saudi Arabia hiring plan

Send the role, a selected worker or an existing-team requirement in Saudi Arabia. Get a written recommendation covering the model, cost categories, responsibilities and next steps. One hire is welcome; no meeting required.

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Deeper guide

Hiring guide: Saudi Arabia →

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