Employer of Record & PEO Services in Saudi Arabia

When it comes to hiring in Saudi Arabia, e-square EOR and PEO services streamline the process for you. We offer comprehensive HR solutions to businesses, ranging from payroll management to legal compliance. We ensure compliance with local regulations, assisting with candidate searches, interviews and onboarding, so you can build your dream team in Saudi Arabia and 20+ Countries hassle-free.

Embrace the future of work with our solutions for remote work in Saudi Arabia. Discover how you can tap into the country's talent pool while providing flexibility to your employees.

Understanding Saudi Arabia's labor laws is crucial. Our experts will guide you through the intricacies of employment regulations, ensuring your business operates smoothly and within the legal framework.

Different kinds of obligations are placed on both sides. For instance, the employee is required to maintain the privacy of his employer's technical, business and trade secrets. The employment agreement must be in written and be signed twice. The employer is responsible for the workers' health and safety. A worker who has an injury on the job is entitled to compensation. Employees should have access to health insurance, and they should receive compensation if they become ill or injured on the job.

Saudi Arabia has specific regulations regarding working hours. As of 2023, the standard workweek consists of 48 hours, with a maximum of 8 hours per day. During the holy month of Ramadan, the working day is reduced to 6 hours. It's important to be aware of these regulations when structuring your employees' schedules.

Navigating employment taxes can be challenging. Our comprehensive services cover all aspects of employer taxes in Saudi Arabia, ensuring compliance and transparency.

Saudi Arabia has no personal income tax system.

If a person's income comes only from employment in Saudi Arabia, income tax is not levied on that person's earnings.

Income from non-employment is subject to entity or permanent establishment (PE) taxation. For additional details on how non-employment income is taxed, see Taxes on corporation income in the corporation overview.

In Saudi Arabia, the corporate tax rate stayed same in 2023 at 20%.45% was the Highest and 20% was the lowest rate.

The employer is responsible for paying social insurance contributions, which are calculated at 2% for non-Saudi employees and are based on the monthly basic salary plus housing (whether paid or in kind) and have a cap of SAR 45,000.

Explore the details of health insurance for your employees in Saudi Arabia. We'll help you select the right coverage options, ensuring the well-being of your workforce.

Female employees in Saudi Arabia are entitled to 10 Weeks of paid maternity leaves, extendable by one month without pay. This leave is fully paid and can be taken before or after childbirth, as needed.

Employees in Saudi Arabia are entitled to annual leave after completing one year of continuous service with their employer. The duration of annual leave varies based on the employee's length of service. Typically, it ranges from 21 to 30 days.

Learn about the severance regulations in Saudi Arabia. e-square Saudi Arabia PEO experts can guide you through the process, ensuring fair treatment of departing employees.

Terminating an employee in Saudi Arabia should be done in accordance with labor laws. At least 60 days’ prior written notice (unless a longer notice is provided contractually, or payment in lieu of the notice), for any ‘legitimate reason’. The term legitimate reason is not defined in Royal Decree No. M/51 dated 23/08/1426H (the Labor Law). The notice period varies depending on the length of service.

In some cases, immediate termination without notice is permissible, such as in cases of gross misconduct or violation of the employment contract.

Explore competitive compensation and benefits packages tailored to the Saudi Arabian market. Attract and retain top talent with our strategic solutions.