Payroll in Saudi Arabia

SAR, Saudi riyal

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

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.

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.

No statutory 13th-month bonus is mandated.

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 [5](https://srrconsultants.com/articles/saudi-arabia-payroll-gosi-saudization-guide).

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

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.