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Employee Leasing Saudi Arabia

Saudi Arabia’s dynamic market is fueled by a young, tech-savvy population and a booming consumer sector. Strategically located at the crossroads of continents, Saudi Arabia offers unparalleled access to regional markets and serves as a global trade gateway. Its modern infrastructure and Vision 2030 development plan further paint a promising picture for business.

Employee leasing with FMC Group simplifies your journey to enter the exciting Saudi market. We eliminate the need for establishing a local subsidiary, empowering you to focus on core business decisions while we handle administrative burdens like payroll, legal compliance, and talent acquisition. Our expertise unlocks the potential of Saudi Arabia’s skilled workforce, connecting you with the perfect fit for your needs and ensuring faster integration, cultural understanding, and a competitive edge in the market.


  • Advantages of Employee Leasing in Saudi Arabia
  • Employee Leasing Services Offered by FMC Group
  • Advantages of the Saudi market
  • Recruitment in Saudi Arabia
    • Minimum Wage and Payroll
    • Social Contributions and Taxes
    • Working Hours and Overtime
    • Vacation Days
    • Parental Leave and Sick leave
    • Other Leaves
    • Notice Period
    • Additional Information
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Get in touch with us

alp atasoy

Alp Atasoy

Sales and Business Development Consultant

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+90 549 499 40 95

Advantages of Employee Leasing with FMC Human Resources in Saudi Arabia

  • Launching your business activity in Saudi Arabia can be smooth and flexible thanks to the employee leasing services offered by FMC Group, providing you with a hassle-free start without the need to set up a local company.
  • Employee leasing frees up your time so you can concentrate on taking strategic decisions and achieving business goals, while we handle administrative tasks like payroll and legal compliance.
  • Hiring local talent through employee leasing means faster integration and better cultural understanding, giving you a competitive edge in the Saudi market.
  • FMC Group gives you access to a wide pool of skilled professionals in Saudi Arabia and connects you with the best fit for your needs.

Employee Leasing Services Offered by FMC Group

  • We source and recruit top talent aligned with your needs.
  • We handle contracts and negotiate the best terms.
  • We process all taxes and social contribution payments accurately.
  • We provide international-standard and transparent payroll services.
  • We track and manage paid vacations for your employees.
  • We negotiate and implement private health insurance for your team if requested.
  • We keep you updated on your employees and team dynamics.

Management & Reporting Flow of Employee Leasing/Outstaffing Services

Management and Reporting Flow Chart

Advantages of the Saudi Market

  • Saudi Arabia has a very thriving consumer market. The country’s young population, with a median age of 29, boasts high smartphone penetration of over 90% and rising disposable income, translating to a booming e-commerce market expected to reach nearly USD 30 billion by 2030. With a GDP per capita of over USD 23,000, this tech-savvy population presents a lucrative consumer base for various sectors.
  • Located at the crossroads of Asia, Africa, and Europe, Saudi Arabia offers excellent access to a vast regional market. With two-thirds of the world’s population within an 8-hour flight radius, the country serves as a strategic gateway for global trade. Additionally, its Red Sea ports handle around 7.5 million containers annually, solidifying its position as a key logistics hub.
  • The Saudi government invests heavily in young talent through its Human Capability Development Program. Launched in 2021, the program aims to equip half the Saudi workforce with future-proof skills by 2030. The number of STEM graduates from Saudi universities has also surged in the past few years, creating a readily available pool of skilled professionals across various sectors.
  • Saudi Arabia boasts advanced infrastructure, exemplified by the NEOM megaproject and the Saudi Vision 2030 development plan. Ranking 38th globally in the World Bank’s 2023 Logistics Performance Index, the country ensures efficient business operations. Vision 2030 further unlocks unique opportunities in sectors like sustainable tourism and renewable energy.
  • As part of the Vision 2030 plan, the Saudi government is committed to encouraging foreign investments through many initiatives, such as special economic zones, tax incentives, and simplified procedures.

Recruitment in Saudi Arabia

Minimum Wage and Payroll

  • The monthly minimum wage in Saudi Arabia is set at SAR 4,000 (EUR 994).
  • Salaries are usually paid weekly for manual labor jobs and monthly for office jobs.

Social Contributions and Taxes

Employer Contributions
Social Insurance Tax (for Saudi employees) 12%
Social Insurance Tax (for foreign employees) 2%
Employee Contributions
Social Insurance Tax (for Saudi employees) 10%
Social Insurance Tax (for foreign employees) 0%
Employee Income Tax
Income Tax (for Saudi employees) 0%
Income Tax (for foreign employees) 20%

Working Hours and Overtime

  • Legal working hours cannot exceed 48 hours per week and 8 hours per day.
  • During the Islamic month of Ramadan, working days have to be reduced to 6 hours.
  • Overtime work is allowed for up to 3 hours per day. It is paid at a rate of 150% of the regular salary.

Vacation Days

  • Employees in Saudi Arabia have the right to 21 days of paid vacation per year during their first 5 years of service. The annual leave increases to 30 days after 5 years of service.
  • Employees have the right to request 10 additional days of unpaid leave per year, given at the discretion of their employer.
  • Saudi Arabia commemorates 5 public holidays (10 days):
    • Founding Day: February 22nd (1 day).
    • Flag Day: March 11th (1 day).
    • National Day: September 23rd (1 day).
    • Eid Al Fitr: Depends on the Islamic calendar (3 days).
    • Eid Al Adha: Depends on the Islamic calendar (4 days).

Parental Leave and Sick Leave

  • Female employees in Saudi Arabia are entitled to 10 weeks of paid maternity leave, including 4 weeks before delivery and 6 weeks after, upon completing their first year of service. Employees with between 1 and 3 years of service receive 50% of their regular salary during maternity leave, while those with more than 3 years of service receive 100%. Payment is covered by the employer.
  • Fathers are entitled to 3 days of paid paternity leave after a new child is born.
  • Employees in Saudi Arabia are entitled to 120 days of sick leave per year. They receive 100% of their salary during the first 30 days, 33% for the next 60 days, and no payment for the remaining 30 days. Payment is covered by the employer.

Other Leaves

  • If an employee loses an immediate family member, they are entitled to 2 days of bereavement leave.
  • If an employee gets married, they are entitled to 3 days of marriage leave.
  • If an employee wants to perform Hajj (pilgrimage) for the first time, they are entitled to 15 days of Hajj leave, on the condition of having completed at least 2 consecutive years of service.

Notice Period

  • For the termination or resignation of a fixed-term employment contract, a 30-day notice period is required.
  • For indefinite-term contracts, a 60-day notice period is required.

Additional information

  • You can access further information on Saudi Arabia’s investment promotion platform: Invest Saudi.

Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.