Saudi labour law changed significantly between 2021 and 2024. Reforms under Vision 2030 transferred several rights from the employer to the worker — the most important being the freedom to change employers without the previous sponsor’s permission. This guide covers what you actually need to know as an expat working in Saudi Arabia, in plain English.
The core law is the Saudi Labour Law (Royal Decree No. M/51 of 1426H, with amendments through 2024). It’s administered by the Ministry of Human Resources and Social Development (HRSD), and most workplace processes go through the Qiwa platform.
Your contract — limited vs. unlimited
Saudi recognizes two contract types:
Limited (fixed-term) contract — Has a specific end date. Most common for expats. If the employer terminates you before the end date without a valid reason, they owe you the remaining contract value (capped at 2 months’ wages). If you terminate early without valid reason, you may owe the employer compensation.
Unlimited contract — No end date. Requires 60 days notice from either side. Less common for expat hires; more common for Saudi nationals.
What “valid reason” means — Article 80 of the Labour Law lists specific reasons either party can terminate without compensation: gross misconduct, repeated absence, sharing trade secrets, etc. Anything outside that list is “termination without cause” and triggers compensation.
The contract should be in Arabic (the binding language) with an English translation for reference. Always get a signed copy before starting work.
Working hours and overtime
- Maximum — 8 hours/day, 48 hours/week
- Ramadan — Reduced to 6 hours/day, 36 hours/week for Muslim workers
- Friday — Weekly day off (some firms switch to Saturday-Sunday weekend; either pattern is legal)
- Overtime — Hours beyond the standard must be paid at 1.5x the hourly rate (basic + housing allowance)
- Maximum overtime — 11 hours total work per day, including overtime
Your employer is supposed to log your hours. In practice, white-collar professional roles often work longer hours without overtime claims — that’s technically a violation if you’re not exempt. You can report unpaid overtime via the Maqasa worker complaint portal (more below).
Annual leave
- 21 days/year for the first 5 years of service
- 30 days/year after 5 continuous years with the same employer
- You can carry forward up to 1 year’s leave if the employer agrees; otherwise it’s paid out
Plus paid public holidays — Eid al-Fitr (4 days), Eid al-Adha (4 days), Saudi National Day (1 day). Some employers add foundation day or other observances.
Sick leave
- First 30 days at full pay
- Next 60 days at 75% pay
- Final 30 days unpaid
To claim, you need a certified medical certificate from a government-recognized facility.
Maternity, paternity, and emergency leave
- Maternity — 10 weeks paid (4 weeks before + 6 after birth). Eligible after 1 year of service. Recently expanded under 2024 reforms.
- Paternity — 3 days paid for the birth of a child.
- Bereavement — 5 days paid for death of spouse, parent, or child.
- Marriage — 5 days paid for your own marriage.
- Hajj — One-time paid leave of 10–15 days after 2 years of service (Muslim workers).
End-of-service gratuity
This is the lump sum you receive when you leave a Saudi employer. The calculation:
- First 5 years — Half a month’s wage for each year (15 days)
- Years 6+ — Full month’s wage for each year
Based on your last basic wage (housing and allowances usually excluded — check your contract). Service must be at least 1 year continuous.
Example: 7 years of service at a basic wage of SAR 10,000/month:
- First 5 years: 5 × 0.5 × 10,000 = SAR 25,000
- Years 6–7: 2 × 1 × 10,000 = SAR 20,000
- Total gratuity: SAR 45,000
If you resign voluntarily within the first 2 years, you may receive nothing. Between 2 and 5 years, you get 1/3. Between 5 and 10 years, 2/3. Over 10 years, the full amount. (This rule applies to resignations; if the employer terminates you, you get the full calculation regardless of years.)
The big change: sponsorship transfer (2021 reforms)
Before 2021, you couldn’t switch employers in Saudi Arabia without your sponsor’s permission (the kafala system). This created real abuse — workers were stuck with bad employers.
Today (post-2021 reforms), you can transfer your sponsorship without the current employer’s consent if any of the following apply:
- Your contract has expired
- Your work permit (iqama) has expired and the employer hasn’t renewed it on time
- Wages haven’t been paid for 3+ consecutive months
- You’re in the first 90 days of a new job and want to move
- The employer is shutting down or in serious legal trouble
- You’ve completed 1+ year of service (with some conditions)
This is huge. Combined with the requirement that employers register all wages via the Wage Protection System (WPS), late or unpaid wages are now self-documenting.
To request transfer:
- Apply via the Qiwa platform
- Your new employer’s HR confirms the offer in Qiwa
- Current employer is notified — they have 14 days to object on specified legal grounds (otherwise the transfer auto-approves)
- Transfer completes, your iqama is updated
Wage Protection System (WPS)
All employers with 5+ workers must pay salaries through registered Saudi bank accounts, with MoL tracking the transactions. Late or missing salary payments are flagged automatically.
If your employer pays you late or in cash, file a Maqasa complaint immediately — the WPS data is your evidence.
Maqasa — the worker dispute portal
Maqasa is the labour court system, accessible via mol.gov.sa or hrsd.gov.sa. You can file disputes for:
- Unpaid wages
- Unpaid overtime
- Refused leave
- Wrongful termination
- Unpaid gratuity
- Refused sponsorship transfer
The first stage is conciliation (mandatory, 21 days). If unresolved, it goes to Labour Court. Court decisions are usually issued within 60–90 days.
You don’t need a lawyer for the conciliation stage. For court stage, having a legal consultant helps but isn’t required. Free legal advice is available through some embassies (Pakistani embassy in Riyadh, Indian embassy, etc.).
Your rights you should know about
You’re entitled to:
- Written contract in Arabic + English
- Iqama renewal at employer’s expense (unless contract specifies otherwise)
- Medical insurance — employer must provide
- Annual ticket home — for many contracts, after 2 years (check contract; not always automatic)
- Salary on time, every month
- End-of-service gratuity if employed 1+ year
You’re NOT entitled to:
- Citizenship through long service (Saudi citizenship is extremely restricted)
- Bringing family dependents below a certain salary threshold (varies by profession)
- Pension contributions (GOSI applies to certain professional categories only)
Iqama renewal essentials
Your iqama is renewed annually by your employer. The current standard fee structure:
- Iqama renewal fee — Approximately SAR 650/year for standard workers (verify on Absher)
- Maqasa dependent fee — Approximately SAR 400/month per dependent
Some employers pay your iqama fee, others pass it on. Check your contract. Dependent fees (Maqasa) are almost always the employee’s responsibility.
To check your iqama status, use the Absher app (the government services platform). You should also have a Tawakkalna account for healthcare and movement.
For full details on renewal, see our Saudi Iqama Renewal Guide. To estimate your gratuity, use our UAE Gratuity Calculator — note: UAE-specific, but the Saudi calculation logic is similar.
Common scenarios and what to do
Your employer hasn’t paid for 2 months
- File a Maqasa complaint immediately
- Continue showing up to work — you’d jeopardize your case by walking out
- Document everything (emails, WhatsApp, payslips)
- WPS data will support your claim
You want to leave but the employer says no
- After 1+ year of service: file the transfer via Qiwa, employer has 14 days to object
- If they object falsely (e.g., “ongoing project”): escalate via Maqasa
- If wages are late, you can leave without their permission regardless of tenure
Employer threatens to “cancel your visa” if you don’t comply
- This is empty as a threat in 2026 — sponsorship transfer protections mean you can move
- File a Maqasa complaint for harassment / wrongful termination threat
You’re fired without cause
- You’re owed: remaining contract value (capped 2 months for limited contracts) + full gratuity + payment of unused leave + repatriation ticket if applicable
- File via Maqasa if employer refuses
FAQ
Can my employer take my passport?
No. It’s illegal under Saudi labour law for an employer to hold a worker’s passport. If yours is being held, request its return in writing. If refused, file a Maqasa complaint — this is one of the clearest violations and gets resolved quickly.
What’s the minimum wage in Saudi Arabia for expats?
There’s no legally-mandated minimum wage for the private sector covering all expats. However, certain sectors have Saudization quotas with minimum wage requirements (typically SAR 4,000/month). For domestic workers, separate rules apply.
Do I get a pension in Saudi Arabia?
GOSI (General Organization for Social Insurance) covers certain professional roles, but most expats are not part of GOSI. Your retirement plan is your gratuity + personal savings.
Can I work two jobs?
Officially you need permission from your sponsor. Some contracts allow part-time work outside business hours; many don’t. With sponsorship-transfer freedom, the bigger issue is whether your contract has a non-compete clause.
What happens if my iqama expires?
The employer is responsible for renewal. If expired, you can request transfer to a new sponsor (one of the post-2021 protections). Continuing to work with expired iqama exposes both employer and you to fines.
Is overtime actually paid in white-collar jobs?
Often not in practice. Many professional contracts have a “lump-sum salary covers all hours” clause that the courts have variably enforced. If you’re consistently working 50+ hours without overtime pay, document the pattern and consult a labour lawyer for your specific situation.
Can I freelance on a regular employment iqama?
Not without separate registration. Freelance work requires a freelancer visa or proper business registration. Doing undocumented freelance work technically violates your contract and visa terms.
The Saudi labour landscape has improved meaningfully for expats since 2021. Sponsorship freedom, WPS, and Maqasa together give you real recourse that didn’t exist before. Document everything, know your rights, and don’t accept arbitrary treatment from an employer — the law is more on your side than most expats realize.
Got a specific situation? Reach us via the Contact page — we can’t give legal advice but we can point you to the right Saudi government portal.
