EOR Service in Saudi Arabia

Hire, Onboard and Pay Employees in Saudi Arabia Quickly and Efficiently

Hiring in Saudi Arabia at a glance

CURRENCY
Saudi Riyal (SAR)
working hours
48 hours
public/bank holidays
10 days
capital
Riyadh
language
Arabic, English
date format
DD/MM/YYYY
remote workers
1.2M
tax year
1 Jan- 31 Dec
minimum hourly salary
No minimum wage
CURRENCY
Saudi Riyal (SAR)
working hours
48 hours
public/bank holidays
10 days
capital
Riyadh
language
Arabic, English
date format
DD/MM/YYYY
tax year
1 Jan- 31 Dec
payroll frequency
Monthly
GDP
1 Jan- 31 Dec

Employer of Record in Saudi Arabia

Gloroots offers an EOR (Employer of Record) solution in Saudi Arabia, allowing employers to navigate the local employment landscape without the need for entity setup. Our all-in-one global HR platform simplifies remote team onboarding, payroll, benefits, and ensures compliance. We facilitate your global expansion with our international network.


Gloroots streamlines the complexities of Saudi Arabia's hiring policies, handling recruitment, payroll, employee management, regulations, and local laws. No separate legal entity required. Contact Gloroots experts today for a hassle-free business expansion into Saudi Arabia, a desirable place for employers in the Middle East due to its pro-business measures.

Why use Saudi Arabia EOR?

Gloroots, a reliable EOR (Employer of Record) and PEO (Professional Employer Organization) in Saudi Arabia, helps businesses seize opportunities in a nation historically dependent on oil but now diversifying its economy. 


Saudi Arabia has exceptional talent, which is evidenced by its high ranks for “Labour productivity per employee” (11) and “Ease of finding skilled employees”(8). To tap into this talent pool, foreign employers must navigate the gulf nation’s one-of-a-kind labor laws. Saudi Arabia's labor laws are influenced by Islamic principles and are designed to align with Islamic values. This impacts various aspects of employment, including working hours, prayer breaks, and religious holidays. Plus, Saudi Arabia has a policy known as "Saudization" (Nitaqat) to encourage the employment of Saudi nationals in the private sector. Employers are required to meet specific quotas for hiring Saudi citizens, which can vary depending on the size and type of business.


Gloroots' EOR/PEO services streamline market entry, ensure regulatory compliance, and grant you access to professionals in high-demand fields. This simplifies and accelerates the process of expanding your business in Saudi Arabia, making it more efficient and less complex for employers.

EOR Costs in Saudi Arabia

The cost of Saudi Arabia EOR/PEO services in Saudi Arabia may differ based on various factors, such as the number of employees, the extent of services needed, and the intricacy of the project. The pricing structure for Saudi Arabia, EOR/PEO services, usually involves a monthly fee per employee or a percentage of the employee's salary. Extra charges may apply for additional services or customization.

Key Metrics For Foreign Employers 

Saudi Arabia has a substantial GDP of USD 833.54 billion and ranks 63rd on the World Bank's Ease of Doing Business Index.


The economic hubs in Riyadh, Jeddah, Medina, and Mecca offer promising prospects for expansion, supported by the country's dynamic economy and strategic location. In this evolving landscape, there's a growing demand for skills such as data analysts, digital marketers, and software developers. Gloroots can help you tap into this talent pool to thrive in Saudi Arabia.

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Saudi Arabia.

Factors Global Ranking Interpretation
Rule of law 54 Indicates effectiveness of law enforcement
Labour-employer cooperation 26 Indicates positive labor-employee relationships
Reading Maths, and Science 70 Indicates average scores in OECD's survey of 15-year old students
University Ranking 19 Indicates average QS rankings
Labour productivity per employee 11 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 8 Indicates findability of skilled talent
Workforce with tertiary education n/a Indicates % of workforce with PG degrees
Digital Skills 3 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Saudi Arabia.

Why work in Saudi Arabia ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Saudi Arabia

When you're growing your team, it's important to hire the right people at the right time. In Saudi Arabia, companies often need a local partner to handle important things like following the rules, paying salaries, managing taxes, and taking care of employee benefits. Dealing with all the complicated work laws in Saudi Arabia can be challenging.

That's where Gloroots comes in. We offer a complete service called the Employer of Record (EoR). We handle all the tricky parts, like paying salaries, taking care of taxes, making sure everyone gets their benefits, and following the rules. This means you can concentrate on what really matters – your team and making your business grow.

Risks of misclassification

The term "misclassification of employees" refers to the inaccurate classification of workers by their employers. Misclassification occurs when an employer categorizes a worker as an independent contractor or exempts them from certain employment laws and benefits, even if the worker should be classified as an employee and entitled to legal protections, benefits, and rights. 

Utilizing a PEO/EOR in Saudi Arabia helps mitigate the risks associated with misclassification by ensuring compliance with labour laws, proper employee classification, accurate payroll processing, and access to comprehensive benefits. This enables businesses to focus on their core operations while entrusting employment-related responsibilities to experienced professionals.

Contact Us

Avoid hefty penalties with Gloroots.

Use our free employee misclassification risk calculator to estimate your risk level.

Calculate Now

Employing in Saudi Arabia

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution

Employer Payroll Contributions

Employee Type Contribution Type Minimum Earnings Maximum Earnings Rate
Non-Saudi Employees Social Insurance Tax (Occupational Hazard) 400 SAR 45,000 SAR 2.00%
Saudi Employees Social Insurance Tax (Occupational Hazard, Pension, and Unemployment) 1,500 SAR 45,000 SAR 12.00%

Employee Payroll Contributions

The Social Insurance Tax for Saudi employees, specifically related to occupational hazard, is set at a fixed rate of 10.00%.

Employee Income tax

In Saudi Arabia, there is no system of individual income tax, meaning that income earned from employment is not liable to income tax.

Separation

Termination 

  • Termination process varies by contract and reason.
  • Justified reasons include misconduct, absenteeism, failure to perform essential duties, safety violations, and more.
  • Fixed-term contract dismissal options: non-renewal, adherence to contract terms, conversion to indefinite term, or work permit expiration.
  • Disciplinary dismissals require written notification of alleged offenses, a meeting, and written notice of disciplinary actions.
  • Unjustified dismissal mandates additional compensation (50 days' pay for each year or outstanding wages) with a minimum of two months' wages.
  • Mutual Termination Agreement possible with employee consent.
  • Prohibited to terminate employees on maternity or medical leave.

Severance Pay

End of Service Gratuity (EOSG) is only payable when the employment ends, not before.

When the employer terminates the employment, EOSG is calculated by adding ½ a month's wage for each of the first 5 years and 1 month's wage for each subsequent year of service. For any portion of a year, the employee receives a proportional EOSG. This calculation is based on the employee's final salary.

If the employee resigns, they are entitled to 1/3 of the gratuity after 2 to 5 years of service, 2/3 if they've served over 5 but less than 10 years, and the full amount if their service reaches or exceeds 10 years.

In specific cases, like military service or force majeure preventing work, employees are still entitled to EOSG. Additionally, female employees can receive EOSG if they resign within 6 months of marriage or within 3 months of giving birth.

Notice Period

In Saudi Arabia, the length of the notice period hinges on the contract type. In cases of indefinite term contracts, which are open-ended and paid monthly, a 60-day notice is mandated for either termination or resignation. For fixed-term contracts, a 30-day notice period applies. Notably, during the probation period, a mere one-day notice is needed.

Probation period

In Saudi Arabia, the length of the probation period can differ based on the employment contract, but it usually spans 90 days. This period may be extended with the employee's written agreement, but it should not surpass 180 days.

Start Hiring in Saudi Arabia today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. We do this by helping you generate employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

Are you Ready to
Experience Seamless Hiring in Saudi Arabia ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Saudi Arabia .

Speak to our Expert