The HR Leader's Guide
to Saudi Arabia

Every HR decision in Saudi Arabia routes through one number: your Nitaqat band. MHRSD calculates it weekly based on the ratio of Saudi nationals to expats in your workforce, weighted by sector and company size. The band — Platinum, High Green, Mid Green, Low Green, Yellow, Red — determines whether you can issue a single new expat work visa. Red and Yellow companies are progressively locked out of the immigration system.

The companies that thrive in Saudi Arabia treat Saudization as a recruiting discipline, not a compliance one. They build their Saudi-national pipeline before they need it. They design roles that Saudi graduates actively want — clear career paths, training budget, real responsibility, hybrid where the role allows. They treat the first ten Saudi hires as a flywheel for the next thirty.

Language. The legally binding contract is the Arabic version. English translations are companion documents only. Every employment contract — Saudi or expat — must exist in Arabic and be registered on Qiwa.

Probation. Maximum 90 days, extendable once to 180 days only by written mutual consent. Termination during probation is straightforward; outside probation it is not.

Notice period. 30 days for indefinite contracts unless the contract specifies longer (60–90 days is common for senior roles). Pay-in-lieu is permitted.

Non-compete. Enforceable but narrowly construed by Saudi courts: must be limited in scope, geography (Saudi only) and duration (12 months typical). Garden leave is recognised.

End-of-service. Half a month per year for years 1–5; full month per year thereafter. Non-negotiable, statutory. Accrues from day one.

Saudi Arabia's Wage Protection System (WPS) routes every salary payment through Mudad. The employer uploads a payroll file on or before the 27th of each month; payments must hit employee bank accounts on the 1st (or earlier). The MHRSD reconciles WPS data against Qiwa headcount weekly. Late payments, partial payments, or payments to unregistered employees trigger automatic penalties and, after three months, a freeze on new visa issuance.

Most foreign HR teams underestimate the operational cadence: the payroll provider, banking partner and HRIS must all be coordinated to the same calendar. Tamra runs WPS payroll for our EOR clients and as a managed service for clients with their own entity.

Medical insurance. Mandatory under CCHI for the employee and immediate dependents. Employer pays premiums in full. Tier matters: senior expat hires expect VIP-tier coverage with international evacuation; Saudi nationals typically expect mid-tier+ family coverage.

Annual leave. 21 working days for years 1–5; 30 days thereafter. Hajj leave (10 days, once every 5 years for Muslim employees), Eid public holidays and National Day are statutory in addition.

Sick leave. 30 days at 100%, 60 days at 75%, 30 days at 0% — annually.

Maternity / paternity. 10 weeks paid maternity (4 pre-natal, 6 post-natal); 3 days paternity. Nursing breaks during the workday.

Allowances. Housing (typically 12.5–25% of base), transport (SAR 800–1,200/month), annual ticket for expats and dependents, schooling allowance for expats with children (often capped per child).

Months 1–3. GOSI registration, Qiwa, Muqeem, Mudad activation. First three Saudi hires onboarded; Nitaqat band locked at Green. Arabic contract templates approved. Medical insurance master policy in place.

Months 4–9. Block visas for first expat cohort issued under the Green band. WPS payroll cycle running clean. Saudi-national recruiting pipeline embedded with university partnerships. Performance management framework in place.

Months 10–18. Headcount to 25–50; Nitaqat band held at High Green. Annual MHRSD audit passed. Year-end EOSB liability quantified and accrued. Talent reviews and Saudi-national leadership development underway.