Working in Saudi Arabia: labour law, pay, mukafat, and the cost of being there
Labour law, mukafat (end-of-service), cost of living, and public holidays for professionals in Riyadh, Jeddah, and the Eastern Province. Built from primary sources, reviewed monthly.
Quick answers
The four most-asked questions about working in Saudi Arabia, with primary sources.
Annual leave entitlement
21 calendar days per year, rising to 30 days after five years of continuous service with the same employer.
Source: Saudi Labour Law, Art. 109
Mukafat (end-of-service)
15 days of basic salary per year for the first five years, 30 days per year thereafter, with no statutory cap on the total.
Source: Saudi Labour Law, Art. 84
Notice period
60 days if the employer terminates an indefinite contract, 30 days if the employee resigns, with longer periods permitted by agreement.
Source: Saudi Labour Law, Art. 75
Working hours
48 hours per week or 8 hours per day, reduced to 6 hours per day during Ramadan for Muslim employees.
Source: Saudi Labour Law, Art. 98
Labour law topics
Deep guides on the rules that govern your employment in Saudi Arabia.
Mukafat (Severance)
End-of-service entitlement, calculation, and vesting periods.
Read full guideTermination & Notice
Grounds for dismissal, notice periods, and end-of-service rights.
Read full guideAnnual Leave
Entitlement, accrual rules, and public holidays.
Read full guideWorking Week & Hours
Standard hours, overtime rates, and Ramadan adjustments.
Read full guideWork Permits & Iqama
Sponsorship, transfer rules, and employer obligations.
Read full guideSalary & Wage Protection
Minimum wage rules, WPS, and permitted deductions.
Read full guidePay Index · Saudi Arabia
See Saudi Arabia salary medians across 12 sectors
Verified pay bands for Saudi Arabia: median, range, top employers per sector. The country-scoped slice of the Tenure Pay Index, refreshed monthly.
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Calculate your Saudi Arabia gratuity
Enter your basic salary and tenure to estimate your end-of-service entitlement. Locked to Saudi Arabia rules.
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Estimates for private-sector mainland employees in UAE (Federal Decree-Law No. 33 of 2021), Saudi Arabia (Royal Decree M/51), Qatar (Law No. 14 of 2004, amended by Law No. 17 of 2020), Bahrain (Law No. 36 of 2012), Kuwait (Law No. 6 of 2010), and Oman (Royal Decree 53/2023). Current as of May 2026. Actual entitlement varies with contract terms, company policy, and judicial interpretation.
DIFC employees are on the DEWS savings scheme (not traditional gratuity). ADGM employees may be on an optional pension scheme. QFC employment does not mandate gratuity. Most other GCC free zones follow national labour law. Oman applies a split-period calculation under Royal Decree 53/2023 (pre- and post-26 July 2023 tenure handled separately). Government employees, domestic workers, and limited/part-time contracts are excluded. Termination for gross misconduct may forfeit entitlement.
Not legal advice. Consult a qualified labour lawyer for specific disputes.
Enter your details to calculate your end-of-service gratuity entitlement
What does life cost in Saudi Arabia?
All figures shown gross. Saudi Arabia has no personal income tax for most professionals; your gross is effectively your net. Open the full cost-of-living calculator pre-set to Riyadh.
Open cost-of-living calculatorPlan your 2026 long weekends in Saudi Arabia
Public holidays and the bridge days that turn them into long weekends. Islamic-calendar dates rely on moon-sighting confirmation closer to each event.
- 3D · no leave
Thu, Jan 1 – Sat, Jan 3
3 consecutive days off
Thu1New Year DayFri2WeekendSat3WeekendIncludes: New Year Day - 3D · no leave
Fri, Feb 20 – Sun, Feb 22
3 consecutive days off
Fri20WeekendSat21WeekendSun22Saudi Arabia Foundation DayIncludes: Saudi Arabia Foundation Day - 4D · 1 leave
Wed, Mar 11 – Sat, Mar 14
4 consecutive days off
Wed11Saudi Flag DayThu12BOOKFri13WeekendSat14Weekend1Book leave onThu, Mar 12One leave day unlocks 4 consecutive days off.
Includes: Saudi Flag Day - 3D · no leave
Thu, Apr 30 – Sat, May 2
3 consecutive days off
Thu30Eid Al FitrFri1Eid Al Fitr – Day 2Sat2Eid Al Fitr – Day 3Includes: Eid Al Fitr, Eid Al Fitr – Day 2, Eid Al Fitr – Day 3 - 5D · 1 leave
Fri, May 22 – Tue, May 26
5 consecutive days off
Fri22WeekendSat23WeekendSun24BOOKMon25Arafah DayTue26Eid Al Adha1Book leave onSun, May 24One leave day unlocks 5 consecutive days off.
Includes: Arafah Day, Eid Al Adha - 4D · no leave
Fri, May 29 – Mon, Jun 1
4 consecutive days off
Fri29WeekendSat30WeekendSun31Eid Al Adha – Day 2Mon1Eid Al Adha – Day 3Includes: Eid Al Adha – Day 2, Eid Al Adha – Day 3 - 4D · 1 leave
Wed, Sep 23 – Sat, Sep 26
4 consecutive days off
Wed23Saudi Arabia National DayThu24BOOKFri25WeekendSat26Weekend1Book leave onThu, Sep 24One leave day unlocks 4 consecutive days off.
Includes: Saudi Arabia National Day
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Living in Saudi Arabia
Practical guides from the Tenure Compass: money, housing, visas, and family life.
Frequently asked questions
What is the minimum notice period in Saudi Arabia?
Under the Saudi Labour Law (Royal Decree M/51), the minimum notice period for an indefinite-term contract is 60 days when the employer terminates and 30 days when the employee resigns. Fixed-term contracts run to their end date. Probation can last up to 180 days and either party can terminate during this period without notice.
How is mukafat (end-of-service) calculated in Saudi Arabia?
15 days of basic salary per year for the first five years of service, then 30 days per year thereafter, with no statutory cap on the total amount. Mukafat is paid out on resignation (with reductions for resignations under 10 years' service) or termination. Calculation is based on the last basic wage and proportionate housing allowance where applicable.
Are salaries in Saudi Arabia tax-free?
Yes, there is no personal income tax for employees in Saudi Arabia. Social insurance (GOSI) contributions apply: roughly 10% from the employee for Saudi nationals (covering pension and unemployment), and approximately 2% from the employer for expatriates (occupational hazards only). For expatriate professionals, gross salary is effectively net salary.
How many annual leave days do I get in Saudi Arabia?
21 calendar days per year for the first five years of service with the same employer, rising to 30 calendar days after five years. Public holidays are separate. Leave entitlement accrues during the first year and can be carried forward by agreement, though employers often require it to be taken within the leave year.
Can I change jobs in Saudi Arabia without my employer's permission?
Since the 2021 Labour Reform Initiative, employees on regular work contracts can transfer to a new employer at the end of their contract or after one year of service in many cases, without requiring a release letter from the current employer. Specific transfer rules vary by visa category and HRSD policy, check the Qiwa platform for your status.
When did Saudi labour law last change?
Royal Decree M/51 (the Labour Law) remains in force, but significant amendments were introduced in 2024 and 2025 covering contract types, women in the workforce, working hours, and end-of-service mechanics. Always check HRSD announcements and the Qiwa platform for the most recent operational changes that affect day-to-day employment in the Kingdom.
This guide summarises public law and policy in Saudi Arabia as of . It is general information, not legal advice. For contracts, disputes, visa issues, or employment decisions, consult a licensed employment lawyer in Saudi Arabia.