Basic Labor Rights Guide in Saudi Arabia
From your first day of work to your last: your annual leave, your GOSI contribution, the notice period before ending a contract, maternity leave, and end-of-service gratuity — five fundamental statutory rights that many employees confuse or don't know the precise details of. This guide connects them together and points you to a dedicated calculator for each one.
Guide steps
Know your actual accrued and remaining balance and its cash value — 21 days rising to 30 after 5 years in Saudi Arabia, with support for five other GCC countries.
Know the actual amount deducted from your salary monthly, the difference between the traditional and the new tiered system, and the employer's matching share.
Before you submit your resignation or receive a termination notice, know exactly the date of your last official working day under Article 75.
12 weeks at full pay with a precise distribution schedule before and after delivery, and calculation of any unpaid extension in case of a delayed delivery.
The final stop: calculate your expected gratuity under Articles 84 and 85 depending on the reason and length of your employment.
Annual leave: a cumulative right many give up
Annual leave under Saudi labor law (Article 109) starts at 21 days a year and rises to 30 days after completing 5 continuous years of service with the same employer. It doesn't stop at "how many days am I entitled to": your actual balance accrues monthly on a pro-rata basis, and is paid out as cash compensation entirely separate from the end-of-service gratuity if you don't use it before your employment ends. Many employees wrongly assume the end-of-service gratuity "covers" their leave balance — this is incorrect; they are two separate amounts that must both be claimed.
Social insurance: a deduction you see but few understand
Every Saudi employee sees an "insurance" deduction on their monthly payslip, but few know this deduction consists of two branches: pensions (9%) and SANED, or unemployment insurance (0.75%) — a total of 9.75% on the Saudi employee, against 11.75% borne by the employer (including an extra 2% for the occupational hazards branch). More importantly: this deduction is calculated only on the wage subject to contribution (basic salary + housing allowance), capped at 45,000 SAR per month — not on your total salary including all allowances as many assume.
Since July 2024, a new system has come into force that gradually raises the pensions share for every new labor-market entrant with no prior contribution periods, until it reaches 11% from each side by 2028 — if you've recently joined your first job, check your system via the "Taminaty" app, because it fundamentally changes your future rate.
Notice period and maternity leave: critical-timing rights
Article 75 requires either party wishing to end an indefinite-term contract to give the other party written notice: 60 days if the wage is paid monthly, and 30 days otherwise — regardless of whether it's the employee or the employer ending it. Failing to observe this period may expose the non-compliant party to a claim for compensation equal to the wage for the remaining period.
As for maternity leave (Article 151), after the latest amendment it became 12 weeks at full pay instead of 10, of which 6 weeks are mandatory after delivery during which employment is not permitted at all. A point many overlook: if delivery is delayed past its expected date such that the days remaining after actual delivery are less than 6 weeks, the difference is granted as additional unpaid leave to guarantee the full mandatory rest period — a detail employers rarely explain clearly.
Quick tips
- Your annual leave balance and end-of-service gratuity are two entirely separate amounts — don't assume one covers the other when employment ends.
- The wage subject to social insurance contribution is the basic salary + housing allowance only, capped at 45,000 SAR — not your total salary.
- The notice period (60 or 30 days) applies regardless of who initiates ending the contract, and depends only on how the wage is paid.
- Labor law prohibits dismissing an employee or warning of dismissal during maternity leave or due to an illness resulting from pregnancy — this is a protected right regardless of internal company policy.
- The figures here are educational estimates based on the announced official regulations — for any actual labor dispute, contact the labor office or the Qiwa platform directly.
Frequently asked questions
Does the notice period affect the end-of-service gratuity?
No, they are entirely independent. The notice period (Article 75) is a formal condition for properly ending the contract, while the end-of-service gratuity (Articles 84 and 85) is calculated based on the reason and length of employment. You can comply fully with the notice period and still only be entitled to a partial gratuity if it's a resignation before 5 years.
Is my unused annual leave balance paid out at the end of employment?
Yes, it's paid out as cash compensation entirely separate from the end-of-service gratuity, calculated on your last wage. Don't assume the end-of-service gratuity includes it — they are two different amounts that must both be claimed.
I'm a pregnant employee — is the employer allowed to end my contract?
Labor law prohibits dismissing a female employee or warning of dismissal during maternity leave or due to an illness resulting from pregnancy or childbirth, provided a medical certificate proves it. Any termination during this period may be considered arbitrary dismissal.
Does the GOSI contribution rate deduct from all my allowances?
No, the wage subject to contribution is the basic salary + housing allowance only (capped at 45,000 SAR), not your total salary including all allowances. This is a difference many overlook when comparing their net salaries.
Do these rights cover non-Saudis too?
Most labor-law rights (annual leave, notice period, end-of-service gratuity) apply to all private-sector workers regardless of nationality. The most notable exception is the social insurance contribution (pensions branch and SANED), which is limited to Saudis only.