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العربية

Cost of hiring an employee

See what an employee really costs each month and each year, beyond the salary, for a Saudi or non-Saudi employee.

Employee

Total cost a month

8,135.42

97,625.00 a year

Salary
6,750.00
Employer GOSI (2%)
125.00
Work permit levy
800.00
Iqama fee (SAR 650 a year)
54.17
Medical insurance
125.00
End-of-service provision
281.25

The end-of-service provision sets aside half a month’s wage for each year, as the law requires for the first five years. Government fees follow Qiwa and Muqeem; check your company’s rates, exemptions and insurance quote there.

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What’s included

Cost Saudi Non-Saudi
Salary (basic + allowances) ✓ ✓
Employer GOSI 11.75% (or more on the new system) 2%
Work permit levy — SAR 700 or 800 a month
Iqama fee — SAR 650 a year
Medical insurance ✓ ✓
End-of-service provision ✓ ✓

Example

A non-Saudi employee with a basic salary of 5,000, housing of 1,250, other allowances of 500 and insurance of 1,500 a year:

  • Salary 6,750 + GOSI 125 + levy 800 + iqama 54 + insurance 125 + end-of-service 281
  • Total: about SAR 8,135 a month, or about 97,600 a year

See the deduction rules in the GOSI calculator, and the award in the end-of-service calculator.

Cost of hiring an employee: common questions

How much is the work permit levy?

SAR 800 a month for each non-Saudi above the number of Saudi employees, or SAR 700 when non-Saudis don’t outnumber Saudis. Some small businesses and industrial workers are exempt.

Who pays the iqama and work permit fees?

The employer, under Article 40 of the Labor Law. Dependents’ fees are usually paid by the employee.

Why include an end-of-service provision?

The end-of-service award is a cost that builds up every month. Setting aside half a month’s wage per year keeps it from becoming a surprise.

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