Saudi Labor Law (Royal Decree No. M/51 of 1426H, with multiple amendments through 2024) governs private-sector employment across the Kingdom. It covers Saudis and expats with critical distinctions — Nitaqat quotas apply to Saudi headcount; GOSI contributions differ by nationality; Mudad WPS submission is mandatory. This guide covers every provision an HR manager needs — and the compliance infrastructure (Mudad + Qiwa + HRSD) that enforces it.
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Max 48 hours/week, 8 hours/day. During Ramadan: 6 hours/day for Muslim employees (mandated by Royal Decree). Rest periods: 30+ min after 5 consecutive hours. Weekly rest: 1 full day (traditionally Friday).
Simpler than UAE/Egypt: 50% premium on all overtime, regardless of day vs night. Max 2 hours/day exceptional work; total working day cannot exceed 11 hours. Rest-day overtime: regular rate + day-off in-lieu OR 50% premium if no in-lieu.
Default 90 days, extendable in writing up to 180 days total. Must be written in contract. Employer may terminate during probation without cause; employee may resign with notice. No EoS during probation.
Half-month wage per year for first 5 years + full month per year after 5. Based on LAST total wage (basic + housing + regular allowances). Resignation brackets: 2-5 yrs = 33%, 5-10 yrs = 66%, 10+ yrs = 100%. Employer-termination = 100% always.
Mandatory Saudi/total headcount ratio by business sector + size. Platinum (highest) / Green / Yellow / Red. Yellow + Red tiers face visa restrictions (can't hire new expats). Banking sector target ~65% Saudis; retail lower (~15%). Updated quarterly.
Mudad platform (SAMA + HRSD-regulated) is mandatory for monthly wage submission. GOSI: Saudis contribute 9.75% + employer 11.75% (annuities, disability, SANED unemployment). Expats: only 2% employer contribution for occupational hazards.
SAMA + HRSD-regulated platform for monthly wage submission. Employer uploads SIF-equivalent payroll file via Mudad portal or integrated commercial bank (Al Rajhi, SNB, Riyad, SABB). File validated + banks disburse salaries + HRSD records compliance.
HRSD platform for labor-contract management. Employment contracts registered in Qiwa; work-permit renewals; Nitaqat tier status; employee transfers between employers; absconding reports. Mandatory for all private-sector employment transactions since 2020.
Social-insurance administration. Monthly contributions registered: Saudi employees 9.75% + employer 11.75% (retirement + disability + SANED unemployment); expats 2% employer only (occupational hazards). GOSI issues digital certificates confirming compliance for government tenders + banking.
Nitaqat tier calculation + reports, work-visa quotas, labor-office complaint mechanism, labor-court referrals. HRSD is the overarching authority — Mudad + Qiwa + GOSI all report to HRSD. Weekly dashboard views for employers on compliance status.
HRSD computes weekly Nitaqat ratio (Saudi headcount / total headcount) against sector-specific thresholds. Platinum/Green = no restrictions. Yellow = no new expat visas. Red = can't renew existing expats + visa cancellations. Falling tier = 30-day grace to improve or face escalating penalties.
The Saudi Labor Law, enacted by Royal Decree No. M/51 of 1426H (corresponding to 2005 Gregorian), with subsequent amendments through 2024. It covers private-sector employment across the Kingdom. Public-sector employment (government) follows separate Civil Service regulations. The Ministry of Human Resources and Social Development (HRSD) administers the law + enforces through Mudad + Qiwa + GOSI platforms.
Nitaqat is a sector-and-size-based Saudization quota system. HRSD assigns each business a sector code + size category, then calculates the Saudi/total headcount ratio needed for each tier (Platinum/Green/Yellow/Red). Platinum = highest Saudis %, unlocks fastest visa processing. Red = failing quota, no new expat visas + existing expat visa cancellations after 30-day grace. Banking + insurance have highest quotas (~65% Saudi); retail + hospitality lower (~15-30%).
Yes, for all private-sector employers with any employees. Monthly wage submission via Mudad platform (SAMA + HRSD-regulated) is mandatory. Mudad validates employee data + salary amounts + banks disburse. Non-compliance: SAR 3,000-30,000 per missed submission + Nitaqat tier downgrade + potential labour-court exposure. Mudad went mandatory in 2014 and tightened enforcement multiple times since.
Mandatory 6-hour working day for Muslim employees during Ramadan (down from 8 hours). This applies across ALL private sectors + government, mandated by Royal Decree. Non-Muslim employees continue 8-hour day legally — but many employers voluntarily reduce hours for all staff to simplify operations + avoid inter-staff tension. Weekly hours reduce proportionally to 30 hours/week for Muslims during Ramadan.
Yes, natively. All provisions pre-configured — hours (48/week, 6h Ramadan), overtime (50% flat), probation (90 days + 180 extensible), EoS (half+full month, 33/66/100% resignation brackets, broader wage base), Mudad WPS SIF generation (auto-validated against SAMA spec), GOSI contributions (Saudi 9.75+11.75%, Expat 2% occupational), Nitaqat ratio tracking + weekly drift alerts.
This page summarizes key provisions of Saudi Labor Law, Royal Decree No. M/51 of 23 Sha'ban 1426H for general informational purposes only. This is not legal advice. Labor laws are amended periodically; AttendUX makes no warranty about completeness or current validity. For your specific situation — including employment terminations, disputes, cross-border cases, or policy design — consult a labor-law attorney licensed in the relevant jurisdiction and verify with the Saudi Ministry of Human Resources and Social Development (HRSD).
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