TXM Solutions · Saudi Arabia

EOR in Saudi Arabia

Build your Saudi team with a clear employment plan. Explore Employer of Record support for local contracts, payroll, employee benefits and work authorisation with TXM Solutions.

Share your roles and hiring locations. We will help assess the available employing route and the requirements for Saudi nationals or expatriate employees.

Discuss your Saudi hiring plan →
Employer of Record explained

What is an EOR in Saudi Arabia?

An Employer of Record in Saudi Arabia is a local legal employer that employs workers under an agreed arrangement for another business. The employment scope can cover contracts, payroll, benefits and HR administration. Eligibility depends on the role, worker status, provider authorisations and the applicable Saudi arrangement.

An eligible EOR arrangement may help you hire without incorporating your own Saudi employing entity. Before proceeding, establish who signs the employment contract, sponsors any required permits, pays wages and manages statutory obligations.

The allocation of supervision and operational responsibilities must match the permitted arrangement. Employment support also needs to be considered alongside any licences your business needs for its own commercial activities. Learn more about our global Employer of Record services and UAE EOR.

Your first Saudi hire

Assess an employment route for a selected candidate before committing to your own employing entity.

A growing local team

Plan consistent contracts, payroll approvals and employee administration as headcount grows.

Project-based hiring

Review the project, worksite and assignment structure to establish whether an authorised arrangement is available.

Plan the full employee lifecycle

Saudi Arabia EOR support to discuss with TXM

Define the legal employer and agreed service scope before onboarding. Your hiring plan can include the following workstreams.

01

Hiring route assessment

Review nationality, occupation, location, worksite and provider eligibility. Identify any localisation or professional registration requirements.

02

Employment contracts

Coordinate locally appropriate terms covering salary, allowances, hours, leave and contract duration, with Qiwa documentation where required.

03

Work permit planning

Assess new-hire or transfer requirements for expatriates, including work permits, Iqama and supporting documents. Start dates depend on approvals.

04

Payroll administration

Agree payroll cut-offs, SAR salary payments, permitted deductions, applicable GOSI contributions and wage protection reporting responsibilities.

05

Benefits and employee HR

Plan health coverage, eligible dependent coverage, statutory leave and employee support, together with any additional agreed benefits.

06

Offboarding coordination

Review the exit reason, notice obligations, unused leave, end-of-service entitlement and any permit or employment record updates.

From requirement to onboarding

How hiring through an EOR works

1

Share the role

Provide the job description, city, candidate nationality, residency status, salary and target start date.

2

Confirm eligibility

Assess the employing organisation, permitted structure, localisation requirements and any immigration dependencies.

3

Agree the package

Approve the itemised cost, employment terms, benefits, responsibilities and realistic onboarding milestones.

4

Onboard and manage

Complete required documents and approvals, then follow the agreed payroll, leave and employee support process.

Saudi-specific employment requirements

Compliance to check before your first hire

Qiwa contracts

Qiwa supports contract authentication and employment services. Confirm the documentation and employee acceptance process applicable to the proposed hire.

Saudization and Nitaqat

Check establishment classification and current sector or occupation localisation rules. There is no single Saudi hiring ratio suitable for every business.

WPS and Mudad

Align salary payments with wage protection requirements. HRSD directs wage protection file uploads through Mudad's Compliance System.

GOSI registration

Establish the employee's applicable social insurance regime. Contributions differ by nationality and scheme; budget from current GOSI rules.

Work authorisation

Confirm the occupation, sponsor, residency and transfer route for non-Saudi candidates. Holding an Iqama alone does not establish eligibility for a new assignment.

Health insurance

Review mandatory employee health coverage and eligible family coverage under Council of Health Insurance requirements, including policy start dates.

Check the permitted assignment structure

Saudi labour supply, secondment and service outsourcing have specific rules. HRSD's expatriate service outsourcing framework covers specified services by workers already resident in the Kingdom, under the service provider's direct supervision through Ajeer.

Confirm the appropriate authorisations, permits and supervision model for your arrangement before work begins.

Employee entitlements

Working hours, leave and benefits in Saudi Arabia

These are general private-sector Labour Law provisions. Check any category-specific exceptions and more generous contractual terms for the actual hire.

RequirementGeneral provisionHiring implication
Working hoursNormally up to 8 actual hours a day or 48 a week, depending on the adopted standard.Set the work schedule and check applicable exceptions.
Ramadan hoursFor Muslim workers, up to 6 actual hours a day or 36 a week.Adjust schedules and payroll inputs where required.
Annual leaveAt least 21 days, increasing to at least 30 after 5 consecutive years with the same employer.Track entitlement, service length and leave balances.
Sick leaveFor proven illness: 30 days at full pay, the next 60 at three-quarter pay and the next 30 unpaid within the relevant year.Retain evidence and apply the correct pay stage.
Maternity leave12 weeks at full pay, with 6 weeks following childbirth mandatory.Plan leave and coverage using the current rules.
Health insuranceMandatory coverage for covered employees and eligible family members.Confirm eligibility, policy benefits and premiums.
End-of-service benefitsEntitlement depends on service, wage components, exit circumstances and applicable rules.Budget the liability and assess the final settlement individually.
Choose the right expansion route

EOR or your own Saudi entity?

ConsiderationAn eligible EOR arrangementYour own local entity
Legal employerA confirmed local employing organisation.Your Saudi organisation employs workers directly.
Employment administrationCovered by the contracted service scope.Managed internally or with separate providers.
SuitabilityDepends on worker eligibility, roles and permitted assignment structure.Depends on incorporation, business licensing and employment readiness.
Time to first hireDepends on contracts, permits and candidate readiness.Depends on entity setup and relevant registrations as well as hire approvals.
Commercial activitiesYour business still needs an assessment of its own activity and licensing obligations.Entity licences must cover the intended activities.
CostsEmployment costs plus agreed provider fees.Employment costs plus setup and ongoing operating costs.
Build a realistic hiring budget

How much does EOR in Saudi Arabia cost?

The total cost depends on the employee and the employing route. Compare an itemised employment budget rather than only a monthly service fee.

  • Salary and agreed allowances in SAR
  • Applicable employer GOSI contributions
  • Employee and eligible family health insurance
  • Work permit, Iqama, transfer and related charges where applicable
  • Leave, overtime and end-of-service provisions
  • EOR fees, setup charges and any agreed recruitment support

Ask which charges are recurring, which are one-off, and whether tax, deposits or reimbursable expenses apply to the quote.

A practical starting point

Plan your Saudi workforce with TXM Solutions

Whether your hiring plan involves Riyadh, Jeddah, Dammam or another location, start with the actual role and worksite requirements. A consistent review process helps you understand the employing structure before making commitments.

Discuss employment administration, recruitment needs and regional workforce coordination together so the scope reflects how your business will operate.

  • Role and candidate eligibility reviewed before onboarding
  • A named legal employer and clear allocation of responsibilities
  • An agreed scope for payroll, benefits and employee support
  • Itemised costs and documented approval dependencies
  • A hiring plan that considers your wider business activities
Your Saudi hiring questions

EOR in Saudi Arabia: frequently asked questions

Can I hire in Saudi Arabia without setting up my own entity?

An eligible EOR arrangement may allow a local employing organisation to employ the worker. Suitability depends on the role, authorisations and assignment structure. Your own commercial licensing obligations also need review.

Is an EOR arrangement available for every Saudi role?

No single model covers every role. Check the employing organisation's authorisations, the occupation, localisation rules, worksite and any sector-specific requirements before proceeding.

Can I hire Saudi nationals and expatriate employees?

Both can be assessed, but their requirements differ. Expatriate hiring includes work authorisation and residency checks, while localisation and social insurance requirements must be reviewed for the relevant employee and employer.

Does EOR remove Saudization requirements?

No. The arrangement must account for applicable Nitaqat, sector and occupation localisation rules. Confirm the requirements and responsibilities with the legal employing organisation.

What are Qiwa and Mudad used for?

Qiwa supports employment services such as contract authentication and work permits. Mudad's Compliance System is used to upload wage protection files. Agree who manages each requirement within the employment scope.

Can an expatriate transfer from another Saudi employer?

A transfer may be available subject to current eligibility rules, contract status, employer requirements and approvals. Share the candidate's situation so the proposed route can be assessed before a start date is agreed.

How quickly can an employee start?

Timing depends on documentation, employment terms, worker status and required approvals. A candidate already eligible for the proposed arrangement may follow a different process from someone who needs new entry or transfer approvals.

What is included in Saudi EOR pricing?

Ask for salary, allowances, employer contributions, health insurance, relevant permit costs, statutory provisions and provider fees to be shown separately. The final scope determines which items are included or charged separately.

Can an EOR support remote employees in Saudi Arabia?

The proposed role and working arrangement need review. Remote work does not remove employment, residency, immigration or localisation requirements for someone working in the Kingdom.

Is payroll outsourcing the same as an EOR?

No. A payroll provider processes pay under an agreed scope; an EOR is the legal employing organisation. If you already have a Saudi employer entity, payroll-only support may be a separate option to assess.

Who handles termination and end-of-service benefits?

The legal employer must apply the relevant employment rules. The service agreement should explain review, approval, funding and administration of notice, final wages, unused leave and any end-of-service entitlement.

What should I send TXM to get started?

Send the roles, hiring locations, worksite, headcount, salary ranges and target dates. Add candidate nationality and residency status, plus any professional registration or existing Saudi employment information relevant to the hire.

Take the next step

Ready to plan your Saudi hires?

Talk to TXM Solutions about your roles, the available employing route and the full cost of building your team in Saudi Arabia.

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