Saudi Arabia flag Saudi Arabia: Operating a Business in Saudi Arabia

Work conditions in Saudi Arabia

The Active Population in Figures

Labour Force 14,020,75814,387,60414,455,587

Source: International Labour Organization, ILOSTAT database

Total activity rate 57.85%57.50%57.95%
Men activity rate 80.79%80.32%80.71%
Women activity rate 23.72%23.12%23.31%

Source: International Labour Organization, ILOSTAT database

For Further Statistics
Ministry of Economy and Planning
For Further Information About the Labour Market
ILO, International Labour Organisation

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Working Conditions

Legal Weekly Duration
8 hours a day or 48 hours a week. The number of working hours may be raised to 9 hours a day where the workman does not work continuously, such as seasonal establishments, hotel, snack bars, restaurants, etc.
Retirement Age
60 years for men and 55 years for women.
Working Contracts
Broadly there are two types of contracts: Permanent and Fixed-term.

Majority of the contacts for foreigners in the labour sector are of fixed-term, while as for the locals these are of permanent type. As of April 2017, following a decision made by the Ministry of Labour, foreigners are excluded from working under any contract at malls in Saudi Arabia.

The number of 'temporary contracts' is very low.

Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
SAR 4,000 - Private firms are required to pay citizens a minimum of SAR 4,000/month to count nationals for Nitaqat Saudization program purposes. However, they are neither statutorily required nor are they obliged by Nitaqat program regulations.
Average Wage
SAR 10,186 for the Saudi, SAR 4,023 for the Non Saudi (GaStat, Q4 2021)
Social Contributions
Social Security Contributions Paid By Employers: Employers contribute 9% of monthly covered payroll (monthly earnings considered are min SAR 1,500 and max SAR 45,000) to GOSI and 2% salary of all employees for work injury. From 1 Sep 2014, an additional 1% unemployment insurance contribution is required.
Social Security Contributions Paid By Employees: Saudi employees contribute 9% of gross monthly covered earnings, within the maximum limit of SAR 45,000. From 1 Sep 2014, an additional 1% unemployment insurance contribution is required.
Self-employed Saudi residents contribute 18% of monthly covered declared earnings (monthly earnings considered are min SAR 1,200 and max SAR 45,000). Unemployment insurance contribution is not applicable to self-employed individuals.

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Social Partners

Social Dialogue and Involvement of Social Partners
The labour law does not provide for collective bargaining. However, the companies that employ more than 100 Saudis are allowed to form "labour committees." Currently, there are 15 labour committees registered in the Kingdom.
Labour Unions

Labour Regulation Bodies
Ministry of Human Resources and Social Development

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Latest Update: July 2024