1) Understanding the Saudi Labor Law
The Saudi Labor Law is the foundation of Saudi Arabia employment law, designed to protect both employers and employees. It clearly defines working hours, leave entitlements, salary payment rules, and termination procedures. Every company, whether private or semi-government, must comply with it.
Supervised by: Ministry of Human Resources and Social Development (MHRSD)
Official website: www.mhrsd.gov.sa
Tip: Always refer to official sources to stay updated with any new labor laws in Saudi Arabia that might affect your employment contract.
2) Working Hours & Overtime
- Regular duty hours are 8 hours per day or 48 hours per week.
- Working hours are reduced to 6 per day during the month of Ramadan.
- Overtime must be paid at 150% of your regular hourly rate.
Tip: If you work extra hours, make sure they’re recorded officially in the HR system — this helps you stay compliant under Saudi Arabia employment law.
3) Annual Leave Entitlement
- After 1 year of service, employees are entitled to 21 days of paid annual leave.
- After 5 years, it increases to 30 days.
- The company must inform you of your approved leave dates at least 30 days in advance.
Tip: Always apply for leave through your HR portal or in writing. Proper documentation is essential under Saudi labor law for expats to prevent misunderstandings.
4) Sick Leave
Workers are entitled to 120 days of sick leave per year, as follows:
- First 30 days – Full pay
- Next 60 days – Half pay
- Last 30 days – Unpaid
A doctor’s certificate is mandatory to claim sick leave under the new labor law in Saudi Arabia.
5) Family & Maternity Leave
- Female employees get 10 weeks of paid maternity leave, split before and after delivery.
- Male employees receive 3 days of paid paternity leave.
- Parents may also receive 1 day off for a child’s birth or school matters, depending on company policy.
These family leave benefits are part of Saudi Arabia employment law updates that promote work-life balance.
6) Salary, Payslips & Deductions
- Salaries must be paid monthly through bank transfer under the Wage Protection System in Saudi Arabia.
- Workers must issue payslips showing basic pay, allowances, and any deductions.
- Deductions are only legal for authorized reasons like absences, fines, or loans.
Tip: Always check your salary in your bank app and verify payments through your Wage Protection System Saudi Arabia record.
7) End of Service Benefits (ESB)
When your contract ends, you are entitled to End of Service Benefits in Saudi Arabia as a reward for your service:
- Half a month’s salary for each of the first 5 years, and
- One month’s salary for each additional year.
Tip: Use the MHRSD online calculator to check your end-of-service benefits in Saudi Arabia — it’s accurate and officially approved.
8) Resignation & Termination Rules
- If you resign, you must serve your notice period (usually 30–60 days).
- If your employer ends the contract, they must give notice or compensate you accordingly.
- All dues, including your ESB, must be settled before your final exit.
The new labor law in Saudi Arabia ensures fair treatment for both parties during termination or resignation.
9) Sponsorship Transfer & Job Mobility
Thanks to Saudi Arabia employment law reforms, expats can now transfer sponsorships without the employer’s consent after the contract ends or if certain conditions are met (like unpaid salary or expired Iqama).
✅ Platforms used: QIWA and MHRSD Portal
These are key tools for expats under the new labor law in Saudi Arabia.
10) Employee Rights in Disputes
If you face issues such as unpaid salary, passport withholding, or unfair treatment:
- Talk to your HR department first.
- If unresolved, file a complaint via the MHRSD website or visit the Labor Office.
- Keep copies of your contract, Iqama, and payslips — these are crucial under employee rights in Saudi Arabia.
Tip: You can track your complaint online through the MHRSD e-services portal.
11) Quick Arabic Words
| English | Arabic | Pronunciation |
| Labor Law | قانون العمل | Qanoon Al-Amal |
| Salary | راتب | Ratib |
| Leave | إجازة | Ijaazah |
| End of Service | مكافأة نهاية الخدمة | Mukafaat Nihayat Al-Khidmah |
| Complaint | شكوى | Shakwa |
12) Saudi Labor Law Reforms: What You Must Know in 2026
On 18 February 2025, significant amendments were introduced to the Saudi labor law — the biggest reform since 2015. These changes strengthen employee rights, modernize workplace practices, and align with Vision 2030 goals.
Equal Treatment and Benefits
- Discrimination based on gender, age, nationality, or disability is now banned. Employers must provide housing and transport or pay allowances instead.
- Non-compliant companies should update salaries or add financial compensation.
Probation and Contracts
- The probation period has been extended to 180 days.
- For non-Saudi employees, contracts without a set term now default to one year, renewing automatically if work continues.
- Employees can resign with notice without paying compensation, while employers can delay resignations up to 60 days if justified.
Stricter Penalties
Companies violating labor laws — not just Saudization rules — may face suspension of work permits. Affected expats can transfer to new employers more easily.
Overtime and Leave
- Overtime can now be compensated with paid leave.
- Notice periods have changed: 30 days for employees and 60 days for employers.
Leave benefits now include:
- 3 days for a sibling’s death
- 12 weeks of maternity leave
- 3 days of paternity leave
A More Balanced Labor Market
The 2025 reforms create a fairer, more transparent system that improves workplace equality and compliance while supporting Saudi Arabia’s economic growth.
13) Work the Right Way — Stay Compliant with Saudi Labor Regulations
The Saudi labor law for expats ensures fair treatment, stability, and equal opportunity in the workplace. Understanding your obligations and rights under Saudi Arabia employment law helps you:
✅ Work confidently
✅ Avoid legal issues
✅ Build a successful, long-term career in the Kingdom
Knowing how the new labor law in Saudi Arabia protects you can make all the difference between uncertainty and security.
