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Labor Laws in Saudi Arabia

  • Annual Leave: 21 days
  • Public Holidays: 6
  • Maternity Leave: 70 days
  • Workweek: 48 hours per week.

Income Tax in Saudi Arabia

Saudi Arabia does not impose a personal income tax on salaries or wages.

Value Added Tax (VAT) in Saudi Arabia

The standard VAT rate is set at 15%.

Social Security in Saudi Arabia

In Saudi Arabia, social security contributions are mandatory for employers and employees, overseen by the General Organization for Social Insurance (GOSI).

For Saudi Employees:

  • Total Contribution: 21.5% of the employee's salary.
  • Employer's Share: 11.75%
  • Employee's Share: 9.75%

For GCC Nationals:

  • Contributions vary but typically align with the rates for Saudi employees, with the employer contributing around 12% and the employee covering the remainder.

For Non-Saudi Employees:

  • A lower rate of 2% is applicable, which is primarily directed toward occupational hazards rather than comprehensive social insurance benefits.

Work Visas in Saudi Arabia

Here is the main work visa available in Saudi Arabia:

Saudi Work Visa

  • A visa allows foreign nationals to live and work in Saudi Arabia. It is typically issued after obtaining a job offer and requires an employment contract. This visa is valid for 90 days, during which the holder can apply for a residency visa (Iqama).

Temporary Work Visit Visa (TWVV)

  • Introduced in 2021, this multiple-entry visa is valid for one year and allows short-term work for the sponsoring entity for up to 90 days. Employers can buy a quota to sponsor expatriates under this visa.

Business Visit Visa

  • For foreign nationals visiting Saudi Arabia for business purposes, such as meetings or negotiations. This visa can be single-entry or multiple-entry, valid for up to six months or one year, allowing stays of up to 90 days per visit.

Residency Visa

  • Allows foreign workers to live and work in Saudi Arabia for a specified period (usually up to one year) and is renewable. Employers must provide sponsorship and approval from the Ministry of Foreign Affairs.

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