Saudi Compliance
What Saudi Law Requires of an Employer
The obligations a Saudi employer actually carries, and what HRMZY does about each. Every statutory figure links to GOSI, MHRSD or the Labour Law.
GOSI differs by nationality
Saudi nationals and non-Saudi employees fall under different GOSI branches, so a single blended rate is wrong for one of them. HRMZY holds nationality on the employee record and the payroll engine is configured per branch. GOSI
Non-Saudis: employer-only, no deduction
For non-Saudi employees the occupational hazards contribution is borne by the employer and nothing is deducted from the employee. HRMZY holds it as an employer cost rather than a payslip deduction. GOSI — non-Saudi
Annuities branch, 9% each side
The annuities branch is split evenly between employer and employee for Saudi nationals. HRMZY carries both halves per employee so the GOSI schedule comes from one record. GOSI — annuities
SANED unemployment insurance
SANED applies to Saudi nationals and is shared between employer and employee. HRMZY configures it alongside the other branches so they are produced from the same figures. GOSI — SANED
Contributory wage ceiling
Contributions are calculated on basic wage plus housing allowance, up to a monthly ceiling. HRMZY separates pay components so the contributory wage is not taken from gross pay by mistake. GOSI — contributory wage
New Social Insurance Law, 2024
A separate pension scheme applies to new entrants to the labour market from the 2024 law, with its own rate and a phased increase. HRMZY holds scheme membership per employee so the two populations are not merged. Social Insurance Law 2024
Wage Protection System
Salaries must be paid through the banking system and reported to the Wage Protection System. HRMZY produces the per-employee pay records the WPS file is built from. MHRSD — WPS / Mudad
No personal income tax on salary
Salary paid to employees in Saudi Arabia is not subject to personal income tax. HRMZY runs payroll without an income-tax deduction configured, so the net pay reflects the contributions only. ZATCA
48 hours, and 36 in Ramadan
Normal hours are eight a day and 48 a week, reduced to six and 36 for Muslim employees during Ramadan. HRMZY holds working patterns per employee so the Ramadan schedule is applied to the right people. Labour Law, Art. 98
Annual leave, 21 days rising to 30
Paid annual leave is 21 days, rising to 30 after five years of continuous service. HRMZY moves employees up on their service anniversary rather than holding one figure. Labour Law, Art. 109
Overtime at 150%
Overtime is paid at the hourly wage plus 50 per cent. HRMZY records normal and overtime hours separately and carries the split into the pay run. Labour Law, Art. 107
Compliance Assistant covers Saudi Arabia
HRMZY’s Compliance Assistant reads statute text you give it and drafts baseline configuration for review — an administrator accepts or rejects each proposal. Saudi Arabia is one of the 59 countries it supports.