Saudi Labor Law Guide for Expats

Most disputes between a worker and an employer in Saudi Arabia come down to three things: what the contract says, how overtime is counted, and what the end-of-service benefit is worth. This guide explains each one in numbers.

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Your contract and your pay

A fixed-term contract ends on its own date; an indefinite one does not. That single difference changes your notice period, how notice is calculated, and what happens if the employer ends the relationship early.

Overtime is paid at 150% of your basic wage for hours beyond the standard day, and 200% on rest days and public holidays. The key word is basic — overtime is not calculated on allowances, which is where expectations and payroll often disagree.

The end-of-service benefit is the largest single figure in most expat finances. For the first five years it is half a month of wage per year; beyond five years it is a full month for each additional year. Resignation before two years earns nothing, and resigning between two and five years earns a third of the entitlement.

Fees, levies and deductions

The work permit levy is charged per worker and varies with company size and worker category. It sits alongside the Iqama renewal, so the two should be budgeted together rather than discovered separately.

Deductions from wages must have a legal basis and are capped as a proportion of pay. If a payslip shows a figure you cannot trace to a rule, ask for it in writing — a legitimate deduction can always be explained.

Qiwa is where most of this becomes visible: contracts, transfers, salary disputes and the employment record all leave a trail there. Registering your own account early gives you a copy of everything that later becomes contested.

Finding your next role

Before you resign, check your Huroob status and your contract type. Both change what you can claim, and both are much easier to verify while you are still employed.

A Saudi-focused CV should state your Iqama status, availability, current notice period and the exact salary you are on, because recruiters screen on those before they read anything else.

When you do move, confirm the exit route in writing. A transfer and a final exit are handled differently, and the difference determines whether you can return on a new visa without a cooling-off period.

Frequently asked questions

How is end of service benefit calculated in Saudi Arabia?
For the first five years, half a month of wage per year of service. Each year beyond five adds a full month. Resignation before two years earns nothing; between two and five years it is one third of that total. Employer termination and contract completion pay the full amount.
What is the overtime rate in Saudi Arabia?
150% of basic wage for overtime hours and 200% on designated rest days and public holidays. It is calculated on basic wage only, not on housing or transport allowances.
What is Qiwa and do I need an account?
Qiwa is the Ministry of Human Resources platform where contracts, transfers, disputes and employment records are recorded. Creating your own account gives you direct access to your own record, which is the fastest way to settle a disagreement.
Can my employer refuse to let me leave?
Exit control follows the worker's record rather than an employer's preference, but an unresolved dispute or an incorrect status can block processing. Check your own status first, then escalate through the labour office if it is wrong.
What notice do I have to give when I resign?
It depends on contract type and length of service. Read your contract before you resign and get any agreed early release in writing, because verbal arrangements are difficult to enforce later.
How do I dispute an unpaid salary?
Raise it through Qiwa with your contract and payment evidence. The platform records the claim, and the trail it creates is what makes resolution possible if the matter is escalated.