Country Guide
Employer of Record in Saudi Arabia (EOR Arabia Saudi)
Capital City
Languages
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Population Size
Employer Taxes
Employee Costs
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Hire Globally, Pay Locally, Expand Effortlessly
INS Global provides global Employer of Record (EOR) services in over 80 countries for companies looking to enter new markets and avoid the hassle that overseas expansion usually involves.
Like an international EOR, it provides companies with a way to simply and securely expand their operations overseas by outsourcing critical HR services to a third-party provider like INS Global. With a EOR in Saudi Arabia, companies can office compliance assurance to employees worldwide in less than 72 hours.
When businesses need support throughout the global expansion process, an Employer of Record (EOR) in Saudi Arabia offers cost-effective utility by taking care of employer responsibilities. Hire or transfer employees in markets worldwide in a fraction of the time of traditional methods with INS Global’s innovative employment outsourcing solution
With a EOR as your partner, you can transfer or hire employees much faster than with traditional company incorporation.
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What Benefits Does a EOR Provide Over Company Incorporation?
Starting your operations in a new country is not an easy process; you might find yourself having to pay high fees or fines as a result of making even the simplest errors. However, a EOR service provider can help you avoid costly mistakes and put you on the fast track toward growth and success in the new market.
A EOR:
- Accelerates the setup period
- Reduces overhead costs associated with expansion
- Decreases necessary management involvement
- Ensures total legal compliance at all points
PEO/EOR vs Company Incorporation
The Advantage in Figures
PEO/EOR
Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
Five Reasons Why You Should Choose a Global EOR Partner
Regulatory Assurance
A EOR has legal experts whose knowledge and guidance will assist you when dealing with an unfamiliar legal system
Less Set Up and Expenses
Spend a fraction of the time and a fraction of the cost for expansion by using a EOR to help you get set up in the new country in just a few days
Concentrate on Company Goals
Let your EOR service provider handle all aspects of hiring and HR so you can focus on planning and achieving company growth
Cost-Reduction
Pay a single monthly service fee and save thousands annually
Structural Minimization
With just one point of contact, you can have all of your HR needs met by professional specialists
How INS Global's EOR Operates in Saudi Arabia
1
We will arrange to discuss with you to create a service plan tailored specifically to your needs
2
Our team provides the legal entity through which you can bring employees into Saudi Arabia
3
We take care of the hiring and HR management of your employees
4
You and your staff continue operations and progress towards success
The Differences Between PEOs and EORs
These two services are similar, but they still have some crucial differences. Before you partner with them, it is important that you understand how each one operates in relation to you and your employees:
- A PEO is a third-party company that supplies HR services to employees of other companies.
- An EOR has the same range of services, but it can also legally hire and is fully responsible for the employees of other companies
- In a PEO agreement, the contract is established between the PEO provider and the client company.
- In an EOR agreement, however, the contract is directed by the client company but officially made between the provider and the employee
- You can choose whichever service suits your needs better; INS Global offers both PEO and global EOR services in Saudi Arabia.
INS GUIDES
Check Our Labor Law Guide
Labor Law in Saudi Arabia - 2025
Employment Contracts in Saudi Arabia
Written contracts are not mandatory in Saudi Arabia but it is strongly recommended to write out all details of employment and compensation for the employee. Contracts should be written in Arabic with all salary amounts in Saudi riyal.
Probation periods are typically 90 days but can be extended for 90 more if both parties agree.
Work Hours and Overtime in Saudi Arabia
Work hours that extend beyond 40 hours a week are counted as overtime and must be compensated at 150% of regular wages. During Ramadan, the weekly hours for Muslim employees are reduced to 36 hours a week.
Types Of Leave
Holidays and Annual Leave
Annual public holidays in Saudi Arabia include two important festivals in the Islamic calendar, Eid Al Fitr and Eid al Adha. The date of these festivals varies each year slightly. 21 days of paid leave annually is the minimum; after 5 years, this number is raised to 30 days. Unused leave days can be carried over to the next year.
Sick Leave in Saudi Arabia
Employees are entitled to four months total of sick leave. In the first 30 days, they will receive 100% of their salary; for an additional 60 days, they receive 60%; and then after this another 30 days of unpaid sick leave.
Maternity and Paternity Leave in Saudi Arabia
Female employees receive 10 weeks of paid maternity leave. Mothers are compensated at 50% of regular wages during this time if they have worked for the employer for a year prior to leave, and 100% if they have worked for three years.
Paid paternity leave is three days.
Tax Law and Social Security Contributions in Saudi Arabia
The rate for corporate income tax is 20%. There is no personal income tax on individual income in Saudi Arabia.
Employers in Saudi Arabia are expected to pay social security taxes for their employees; this amount varies but can be averaged at 10%. Employers also pay 2% towards occupational hazard insurance.
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Frequently Asked Questions
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each country.