Country guide
Employer of record in Saudi Arabia: the real cost in 2026
An employer of record (EOR) employs your worker in Saudi Arabia for you, and sponsors the work permit and the residence permit (iqama) of a foreign worker. You do not need a Saudi company. But since 2025 the Labour Law makes it a licensed activity to supply a worker to someone other than the employer. Read the section on the outsourcing licence before you choose. In 2026, the all-in EOR cost of a SAR 300,000 gross salary in Saudi Arabia is SAR 337,155 to SAR 373,155 a year. This is the salary, the employer costs and the provider fee. See the calculation and its sources.
This guide shows the full yearly cost: the salary, the employer's costs and the provider's fee. Every figure has a source and a check date.
Key facts for 2026
- Employer costs
- For an expatriate: 2% GOSI on the basic wage and the housing allowance, the expat levy of SAR 800 a month and the end-of-service award of half a month's wage a year. For a Saudi: 11.75% GOSI, or 12.25% to June 2026 and 12.75% from July for those first insured from 3 July 2024, and the award. GOSI applies up to SAR 45,000 a month.GOSI, FAQ for contributors, GOSI, the new law for employers (Arabic), Qiwa, work permits and their fees (archive copy of 26 Oct 2025), Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
- EOR provider fees
- SAR 746 to SAR 3,746 a month for each employee, in the providers' published prices (RemoFirst to Deel).RemoFirst pricing, Deel Saudi Arabia page, European Central Bank, Saudi Central Bank, commitment to the exchange rate policy (4 May 2020)Checked 22 Oct 2026
- Minimum wage
- No general minimum wage. A Saudi counts as one full worker for the Saudization quota (Nitaqat) from SAR 4,000 a month.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026), MHRSD, Ministerial Decision 61706 on Nitaqat (archive copy of 3 Mar 2026)Checked 22 Oct 2026
- Leave
- 21 days of paid annual leave, or 30 days after 5 years of service. 10 days of public holidays. 12 weeks of maternity leave on full pay.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026), MHRSD, Executive Regulations of the Labour Law and annexes (Arabic, archive copy of 18 Jul 2025)Checked 22 Oct 2026
- Ending a job
- For a contract with no fixed end: notice of 30 days from the worker and 60 days from the employer. An expatriate's contract always has a fixed term. The end-of-service award is half a month's wage a year for the first 5 years, then a full month.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026), MHRSD, Executive Regulations of the Labour Law and annexes (Arabic, archive copy of 18 Jul 2025)Checked 22 Oct 2026
- Outsourcing licence
- Since 19 February 2025, supplying a worker to work for someone other than the employer (outsourcing) needs a licence from the Ministry of Human Resources (MHRSD). Ask each provider whether its Saudi company holds one.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
The cost of an employee in Saudi Arabia
Your estimate
The mark shows SAR 540,000 a year: above SAR 45,000 a month of basic wage and housing allowance, GOSI stops growing.
An expatriate pays only the occupational hazards branch, and the employer pays the expat levy. A Saudi first insured from 3 July 2024 is under the new law.
GOSI applies to these two parts only. If part of the salary is another allowance, such as transport, enter the lower share.
Only for an expatriate. Most EOR companies have more expatriates than Saudis. Ask the EOR.
Employer costs, line by line
| Cost | Employer rate | Applies to | Per year | Source |
|---|---|---|---|---|
| GOSI occupational hazards | 2% | SAR 300,000.00Ceiling SAR 540,000 | SAR 6,000.00 | GOSI, FAQ for contributors, GOSI, Social Insurance Law (1421H) and its regulationsChecked 22 Oct 2026 |
| End-of-service award, accrued | Half a month's wage a year | SAR 300,000.00 | SAR 12,500.00 | Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026), Bureau of Experts, Labour Law, English translation of the text before 2025 (archive copy of 17 Jan 2026)Checked 22 Oct 2026 |
| Expat levy and work permit fee | SAR 800 a month and SAR 100 a year | SAR 300,000.00 | SAR 9,700.00 | Qiwa, work permits and their fees (archive copy of 26 Oct 2025), Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026 |
| Employer costs | SAR 28,200.00 |
Costs that this estimate leaves out
- Health insuranceThe employer must insure the employee and the employee's dependants, Saudi or expatriate. The premium depends on the plan, the age and the family.
- Residence permit (iqama), visas and ticketsFor an expatriate, the employer pays the recruitment, iqama, exit and re-entry fees and the return ticket at the end of the contract. The amounts depend on the case.
- Fee for dependantsSAR 400 a month for each dependant of an expatriate. The law does not say that the employer pays it, so the estimate leaves it out.
All-in cost with a provider
Each provider's published monthly price for one employee. A "from" price is the lowest price, and the price for one country can be higher. When a provider publishes a price in riyals, we use it. Ask each provider for a quote.
- Gross salary
- Employer costs
- Provider fee
| Provider | Fee | All-in total per year | Quote |
|---|---|---|---|
| RemoFirstFrom. The fee can vary by country. No set-up fee and no minimum contract term.RemoFirst pricingChecked 21 Oct 2026 | US$199 a monthSAR 8,955.00 a year | SAR 337,155.00 | Get a quote |
| BoundlessFrom. No set-up fee and no minimum commitment. The price can vary by country.Boundless pricingChecked 21 Oct 2026 | US$199 a monthSAR 8,955.00 a year | SAR 337,155.00 | Get a quote |
| PlayrollFrom. Playroll publishes no price in riyals. No minimum commitment. A refundable deposit of 1 month's salary.Playroll pricingChecked 21 Oct 2026 | US$399 a monthSAR 17,955.00 a year | SAR 346,155.00 | Get a quote |
| PeblFormerly Velocity Global. The pricing page shows one price, with no "from". Its FAQ says that you get a custom quote for each country. No set-up fee. A deposit ("Payroll Funding") for each employee.Pebl EOR pricingChecked 22 Oct 2026 | US$399 a monthSAR 17,955.00 a year | SAR 346,155.00 | Get a quote |
| MultiplierCore plan, with yearly billing. Add-ons that the law requires and an implementation fee can apply.Multiplier pricingChecked 21 Oct 2026 | US$459 a monthSAR 20,655.00 a year | SAR 348,855.00 | Get a quote |
| Papaya GlobalFrom.Papaya Global pricingChecked 21 Oct 2026 | US$499 a monthSAR 22,455.00 a year | SAR 350,655.00 | Get a quote |
| WorkMotionFrom. WorkMotion publishes no price in riyals. At least 3 monthly fees for each employee. The deposit is the notice period in months times the monthly employment cost.WorkMotion pricingChecked 7 Oct 2026 | US$549 a monthSAR 24,705.00 a year | SAR 352,905.00 | Get a quote |
| RemoteFrom. Price in US dollars. No standard deposit, but Remote can ask for a refundable reserve payment in some cases.Remote pricingChecked 20 Oct 2026 | US$599 a monthSAR 26,955.00 a year | SAR 355,155.00 | Get a quote |
| G-PFrom. G-P publishes no price in riyals. Discounts for volume. No minimum contract length.G-P pricingChecked 21 Oct 2026 | US$599 a monthSAR 26,955.00 a year | SAR 355,155.00 | Get a quote |
| SkuadPrice for Saudi Arabia. Offers of US$549 with monthly billing and US$499 with a 12-month commitment depend on hiring volume.Skuad Saudi Arabia page (20 Oct 2026)Checked 21 Oct 2026 | US$649 a monthSAR 29,205.00 a year | SAR 357,405.00 | Get a quote |
| OysterFrom. Oyster publishes no price in riyals. Discounts for yearly billing. Oyster's help centre says that a fully refundable deposit of about 1 month of the total cost applies.Oyster pricingChecked 21 Oct 2026 | US$699 a monthSAR 31,455.00 a year | SAR 359,655.00 | Get a quote |
| DeelFrom, on the Saudi Arabia page (the general pricing page says from US$599). The page also lists an Employer Liability Cost of 0.60%, an Ajeer fee of SAR 46 and a nationalization fee of about SAR 3,000 for expatriates, which our totals leave out.Deel Saudi Arabia pageChecked 21 Oct 2026 | US$999 a monthSAR 44,955.00 a year | SAR 373,155.00 | Get a quote |
The fees use the ECB reference rates of 30 Sep 2026: €1 = 4.2581 SAR, 1.1355 USD. European Central Bank, Saudi Central Bank, commitment to the exchange rate policy (4 May 2020)Checked 22 Oct 2026
Assumptions
- The salary is the gross yearly salary in riyals, with all allowances.
- GOSI applies to the basic wage and the housing allowance, up to SAR 45,000 a month. Enter their share of the salary if part of it is another allowance, such as transport.
- The end-of-service award builds up at half a month of the last wage, with all allowances, for each of the first 5 years. After 5 years, it builds up at a full month a year.
- For a Saudi first insured from 3 Jul 2024, the annuities rate rises by 0.5% on each side each July. The estimate uses 12.25% to June 2026 and 12.75% from July.
EOR providers in Saudi Arabia
Each answer comes from the provider's own website. "Not stated" means that we did not find the answer there. Ask the provider to confirm it before you sign. The licence column asks whether the provider says that its Saudi company holds an MHRSD licence for outsourcing. Fees in US dollars or euros convert to riyals at the fixed rate of SAR 3.75 for 1 US dollar.
| Provider | Published EOR price | MHRSD outsourcing licence | Employs people through | Quote |
|---|---|---|---|---|
| Boundless | US$199 a monthFrom. No set-up fee and no minimum commitment. The price can vary by country.Boundless pricingChecked 21 Oct 2026 | Not statedBoundless Saudi Arabia guideChecked 21 Oct 2026 | Not statedBoundless Saudi Arabia guideChecked 21 Oct 2026 | Get a quote |
| Deel | US$999 a monthFrom, on the Saudi Arabia page (the general pricing page says from US$599). The page also lists an Employer Liability Cost of 0.60%, an Ajeer fee of SAR 46 and a nationalization fee of about SAR 3,000 for expatriates, which our totals leave out.Deel Saudi Arabia page, Deel pricingChecked 21 Oct 2026 | Not statedDeel Saudi Arabia pageChecked 21 Oct 2026 | Not statedDeel Saudi Arabia pageChecked 21 Oct 2026 | Get a quote |
| G-P | US$599 a monthFrom. G-P publishes no price in riyals. Discounts for volume. No minimum contract length.G-P pricingChecked 21 Oct 2026 | Not statedG-P Saudi Arabia pageChecked 21 Oct 2026 | Not statedG-P Saudi Arabia pageChecked 21 Oct 2026 | Get a quote |
| Multiplier | US$459 a monthCore plan, with yearly billing. Add-ons that the law requires and an implementation fee can apply.Multiplier pricingChecked 21 Oct 2026 | Not statedMultiplier Saudi Arabia pageChecked 21 Oct 2026 | Own companyMultiplier Saudi Arabia pageChecked 21 Oct 2026 | Get a quote |
| Oyster | US$699 a monthFrom. Oyster publishes no price in riyals. Discounts for yearly billing. Oyster's help centre says that a fully refundable deposit of about 1 month of the total cost applies.Oyster pricing, Oyster help centre, why a deposit is required (9 Apr 2025)Checked 21 Oct 2026 | Not statedOyster library, EOR in Saudi Arabia (12 Aug 2026)Checked 21 Oct 2026 | Not statedOyster library, EOR in Saudi Arabia (12 Aug 2026)Checked 21 Oct 2026 | Get a quote |
| Papaya Global | US$499 a monthFrom.Papaya Global pricingChecked 21 Oct 2026 | Not statedPapaya Global Saudi Arabia page (3 Mar 2026)Checked 21 Oct 2026 | PartnerPapaya Global Saudi Arabia page (3 Mar 2026)Checked 21 Oct 2026 | Get a quote |
| Pebl | US$399 a monthFormerly Velocity Global. The pricing page shows one price, with no "from". Its FAQ says that you get a custom quote for each country. No set-up fee. A deposit ("Payroll Funding") for each employee.Pebl EOR pricing, Pebl EOR terms of service (Oct 2026)Checked 22 Oct 2026 | Not statedPebl Saudi Arabia pageChecked 22 Oct 2026 | Not statedPebl Saudi Arabia pageChecked 22 Oct 2026 | Get a quote |
| Playroll | US$399 a monthFrom. Playroll publishes no price in riyals. No minimum commitment. A refundable deposit of 1 month's salary.Playroll pricing, Playroll Saudi Arabia page (16 Oct 2026)Checked 21 Oct 2026 | Not statedPlayroll Saudi Arabia page (16 Oct 2026)Checked 21 Oct 2026 | Not statedPlayroll Saudi Arabia page (16 Oct 2026)Checked 21 Oct 2026 | Get a quote |
| RemoFirst | US$199 a monthFrom. The fee can vary by country. No set-up fee and no minimum contract term.RemoFirst pricing, RemoFirst Saudi Arabia guideChecked 21 Oct 2026 | Not statedRemoFirst Saudi Arabia guideChecked 21 Oct 2026 | PartnerRemoFirst pricingChecked 21 Oct 2026 | Get a quote |
| Remote | US$599 a monthFrom. Price in US dollars. No standard deposit, but Remote can ask for a refundable reserve payment in some cases.Remote pricing, Remote Saudi Arabia pageChecked 21 Oct 2026 | Not statedRemote Saudi Arabia pageChecked 21 Oct 2026 | Own companyRemote Saudi Arabia pageChecked 21 Oct 2026 | Get a quote |
| Rippling | Quote onlyRippling sends a custom quote. Its site has a page on contractors in Saudi Arabia, but none on employees.Rippling pricingChecked 21 Oct 2026 | Not statedRippling Saudi Arabia contractors pageChecked 21 Oct 2026 | Not statedRippling Saudi Arabia contractors pageChecked 21 Oct 2026 | Get a quote |
| Skuad | US$649 a monthPrice for Saudi Arabia. Offers of US$549 with monthly billing and US$499 with a 12-month commitment depend on hiring volume.Skuad Saudi Arabia page (20 Oct 2026)Checked 21 Oct 2026 | Not statedSkuad Saudi Arabia page (20 Oct 2026)Checked 21 Oct 2026 | Own companySkuad Saudi Arabia page (20 Oct 2026)Checked 21 Oct 2026 | Get a quote |
| WorkMotion | US$549 a monthFrom. WorkMotion publishes no price in riyals. At least 3 monthly fees for each employee. The deposit is the notice period in months times the monthly employment cost.WorkMotion pricing, WorkMotion terms (PDF)Checked 7 Oct 2026 | Not statedWorkMotion Saudi Arabia page (archive copy of 8 Oct 2025)Checked 21 Oct 2026 | Not statedWorkMotion Saudi Arabia page (archive copy of 8 Oct 2025)Checked 21 Oct 2026 | Get a quote |
Compare the deposits, set-up fees and other costs of each provider.
EOR, own company or contractor?
There are three ways to work with someone in Saudi Arabia. Each one fits a different case.
- Employer of record
- The EOR's Saudi company employs the person, pays GOSI and, for an expatriate, holds the work permit and sponsors the iqama. You need no Saudi company. But the outsourcing rules apply (see the next section).Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026), Council of Health Insurance, beneficiaries of health insurance coverage (PDF)Checked 22 Oct 2026
- Your own Saudi company
- A non-Saudi may work only with a work permit, under a contract with an employer in Saudi Arabia that is responsible for them. So to employ someone yourself, you need a Saudi company.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
- Contractor
- The Labour Law forbids a worker to work for anyone other than the employer, and an employer to let its worker work for others, outside the official procedures. Ask a Saudi lawyer before you engage a person in Saudi Arabia as a contractor.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
Compare an EOR with a PEO, your own company and a contractor.
Outsourcing: the MHRSD licence
An EOR is the legal employer, but the person works for you. Since the Labour Law amendments of 19 February 2025, Saudi law has a name for this: outsourcing (الإسناد).
- Outsourcing needs a licence
- The law defines outsourcing as the service of providing a worker to work for someone other than the employer, through a company licensed for this. No person or company may carry on outsourcing without a licence from the Ministry.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
- One employer
- A worker may not work for another employer, and an employer may not let its worker work for others, outside the official procedures.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
- Human resources companies
- Under the Executive Regulations, only a large licensed human resources company may supply professional workers to clients. It needs a paid-up capital of SAR 100 million and a bank guarantee of SAR 10 million.MHRSD, Executive Regulations of the Labour Law and annexes (Arabic, archive copy of 18 Jul 2025)Checked 21 Oct 2026
- Employers of record
- No Saudi law names employers of record. An EOR employs a person who works for a client, which matches the activity that the law calls outsourcing. Whether a given service needs the licence depends on its facts.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
No provider in our table names this licence on its pages. Remote, Multiplier and Skuad say that they employ through their own Saudi company. RemoFirst and Papaya Global use a local partner.
Ask each provider these questions before you sign:
- Which Saudi company will employ the person: your own company or a partner?
- Does that company hold an MHRSD licence for outsourcing, as a human resources company? Can we see it?
- Who pays the expat levy, the iqama, the visas, the health insurance and the end-of-service award, and are they in your fee?
- How does the hire affect your company's Saudization rate (Nitaqat)?
These rules are new and complex. Ask a Saudi employment lawyer how they apply to your case.
Compare an EOR with a staffing agency.
Sources: Remote Saudi Arabia page, RemoFirst pricing, Multiplier Saudi Arabia page, Papaya Global Saudi Arabia page (3 Mar 2026), Skuad Saudi Arabia page (20 Oct 2026)Checked 21 Oct 2026
Employment rules
- Written contract in Arabic
- The contract is written in two copies and documented on the Ministry's platform (Qiwa). Arabic is the language of contracts, and the Arabic text prevails over any other language.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026), Bureau of Experts, Labour Law, English translation of the text before 2025 (archive copy of 17 Jan 2026), MHRSD, Executive Regulations of the Labour Law and annexes (Arabic, archive copy of 18 Jul 2025)Checked 22 Oct 2026
- Fixed term for expatriates
- An expatriate's contract must be written and have a fixed term. With no term stated, it lasts 1 year and renews for the same period. It never becomes a contract with no fixed end.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026), MHRSD, Executive Regulations of the Labour Law and annexes (Arabic, archive copy of 18 Jul 2025)Checked 22 Oct 2026
- Working hours
- At most 8 hours a day or 48 hours a week. In Ramadan, Muslim workers work at most 6 hours a day or 36 hours a week.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
- Overtime
- Overtime pays the hourly wage plus 50% of the basic wage. With the worker's consent, the employer can give paid time off instead.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
- Annual leave
- At least 21 days of paid leave a year, and 30 days after 5 years of service with the employer. The leave cannot be paid out in cash during the employment.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
- Public holidays
- 10 days: 4 days for Eid al-Fitr, 4 days for Eid al-Adha, National Day (23 September) and Founding Day (22 February).MHRSD, Executive Regulations of the Labour Law and annexes (Arabic, archive copy of 18 Jul 2025)Checked 21 Oct 2026
- Sick leave
- In a year from the first sick day: 30 days on full pay, 60 days at three quarters of the pay and 30 days without pay.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
- Maternity and paternity leave
- 12 weeks of maternity leave on full pay, 6 of them after the birth. GOSI pays a qualifying mother 3 months of compensation, which she cannot receive with her wage. 3 days of paid paternity leave.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026), GOSI, maternity benefit from 1 Jul 2025 (26 Jun 2025)Checked 22 Oct 2026
- Probation
- At most 180 days in total, written in the contract. Either side can end the contract during probation, with no end-of-service award.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026), MHRSD, Executive Regulations of the Labour Law and annexes (Arabic, archive copy of 18 Jul 2025)Checked 22 Oct 2026
- Notice period
- For a monthly-paid contract with no fixed end: 30 days from the worker and 60 days from the employer. A fixed-term contract ends at its term.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
- End-of-service award
- Half a month of the last wage for each of the first 5 years, then a full month for each further year, with all allowances. A worker who resigns gets a third of it after 2 years, two thirds after 5 years and the full award after 10 years.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026), Bureau of Experts, Labour Law, English translation of the text before 2025 (archive copy of 17 Jan 2026)Checked 22 Oct 2026
- Ending a contract without a valid reason
- Unless the contract sets a sum, the other side gets 15 days' wages for each year of service (no fixed end) or the wages for the rest of the term (fixed term), and at least 2 months' wages.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
- Minimum wage
- The law lets the Council of Ministers set a minimum wage, but none applies. For the Saudization quota, a Saudi counts as one full worker from SAR 4,000 a month.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026), MHRSD, Ministerial Decision 61706 on Nitaqat (archive copy of 3 Mar 2026)Checked 22 Oct 2026
Payroll and taxes
Employees are not among the persons who pay Saudi income tax. So the employer, or the EOR, withholds only the employee's GOSI share from the salary, and pays the salary through a bank in Saudi Arabia.
The employer pays GOSI for both sides by the 15th of the next month, with a fine of 2% for each month of delay. A Saudi pays 9.75% as an employee, or more under the new law. An expatriate pays nothing.
At the end of the job, the employer pays the wage and the end-of-service award within 1 week, or within 2 weeks when the worker ends the contract.
Read how payroll works through an EOR.
Sources: ZATCA, simplified guideline for income tax (PDF), GOSI, FAQ for contributors, GOSI, Social Insurance Law (1421H) and its regulations, Umm Al-Qura, Social Insurance Law (1445H) (Arabic), Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
Payroll in Saudi Arabia: an EOR or a local payroll company?
A local payroll company calculates and pays the salaries, but it does not employ the person. In Saudi Arabia, the employer must be in the country.
- A work permit and an employer
- A non-Saudi needs a work permit and a contract with an employer in Saudi Arabia that is responsible for them.Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026)Checked 22 Oct 2026
- Health insurance and the iqama
- The employer insures its Saudi and expatriate employees and their dependants. No iqama is issued or renewed without this insurance.Council of Health Insurance, beneficiaries of health insurance coverage (PDF)Checked 21 Oct 2026
- GOSI
- The employer registers each new worker with GOSI and pays the contributions each month.GOSI, Social Insurance Law (1421H) and its regulations, Umm Al-Qura, Social Insurance Law (1445H) (Arabic)Checked 22 Oct 2026
So in Saudi Arabia, your company needs its own Saudi company to employ someone, and a payroll company can then run the payroll. Without one, an EOR employs the person for you. Ask a tax adviser if an employee in Saudi Arabia creates a taxable presence (a permanent establishment) for your company.
Read how staff abroad can create a permanent establishment.
Sources: Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026), Council of Health Insurance, beneficiaries of health insurance coverage (PDF), GOSI, Social Insurance Law (1421H) and its regulationsChecked 22 Oct 2026
Benefits
The law requires GOSI: pensions, occupational hazards and unemployment insurance (SANED) for Saudis, and occupational hazards for expatriates. It also requires the end-of-service award, paid leave and health insurance for the employee and the dependants, which the employer pays.
For an expatriate, the employer also pays the work permit, the iqama and its renewal, the exit and re-entry fees and the return ticket at the end of the contract.
Read what an EOR gives you and your staff.
Sources: GOSI, FAQ for contributors, Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026), Council of Health Insurance, beneficiaries of health insurance coverage (PDF)Checked 22 Oct 2026
How hiring through an EOR works
- Compare providers and ask for quotesAsk for the monthly fee in Saudi Arabia, the deposit, the levy, visa and health insurance costs, and the notice period of the EOR contract. Ask whether the provider holds an MHRSD outsourcing licence.
- Agree the employment termsAgree the salary and its split into the basic wage and the allowances, the start date, the leave and the probation period with the candidate.
- The EOR gets the permitsThe EOR becomes the legal employer and documents the contract on Qiwa. For an expatriate, it gets the work permit and the iqama, and buys the health insurance.
- The EOR runs the payrollEach month, the EOR pays the salary through a bank and pays GOSI.
- You manage the daily workYou set the tasks and the goals. The EOR handles the employment administration.
Read how to check an EOR provider before you sign.
Read which terms to check in an EOR contract.
Sources: Bureau of Experts, Labour Law with the 2025 amendments (Arabic, archive copy of 28 Jan 2026), MHRSD, Executive Regulations of the Labour Law and annexes (Arabic, archive copy of 18 Jul 2025), Council of Health Insurance, beneficiaries of health insurance coverage (PDF)Checked 22 Oct 2026
Questions and answers
How much does an employer of record cost in Saudi Arabia?
At a gross salary of SAR 300,000, the employer costs on top of the salary are SAR 28,200 a year. With the published provider fees, the all-in cost is between SAR 337,155 (RemoFirst) and SAR 373,155 (Deel) a year, at the ECB rate of 30 Sep 2026. Prices for one country can differ, so ask for a quote.
Is an employer of record legal in Saudi Arabia?
Saudi law does not name EORs. Since 19 February 2025, supplying a worker to work for someone other than the employer (outsourcing) needs an MHRSD licence. No provider in our table names this licence on its pages. Ask each provider which licence its Saudi company holds, and ask a Saudi lawyer.
Do I need a Saudi company to hire someone there?
To employ the person yourself, yes: a non-Saudi needs a work permit and a contract with an employer in Saudi Arabia. Without a Saudi company, an EOR employs the person and sponsors the iqama for you.
How much does GOSI cost an employer?
2% of the basic wage and the housing allowance for an expatriate. For a Saudi, 11.75%, or 12.25% to June 2026 and 12.75% from July for those first insured from 3 July 2024. GOSI applies up to SAR 45,000 a month.
What is the expat levy?
A monthly fee for each expatriate: SAR 800 when expatriates outnumber Saudis in the employer's company, and SAR 700 otherwise, plus SAR 100 a year for the work permit. The employer pays it.
Is there a minimum wage in Saudi Arabia?
No. The law lets the Council of Ministers set one, but none applies. For the Saudization quota, a Saudi counts as one full worker from SAR 4,000 a month.
Which costs does this page leave out?
Health insurance, because its price depends on the plan and the family. The iqama, visa and ticket costs, because they depend on the case. The fee for dependants, because the law does not say that the employer pays it.
When do these figures change?
For a Saudi first insured from 3 July 2024, the GOSI pension rate rises by 0.5% on each side each July until 2028. Other rates have no scheduled change. We check the figures again in late December 2026, and we update this page when a rule changes.
Change log
- We published this guide with the 2026 figures.
Warning: This page is not legal or tax advice. The figures come from official sources, but your case can be different. Check them with a payroll expert before you hire.