Saudi Arabia: Pay and benefits

Updating author: Sara Khoja, Clyde & Co LLP
Original author: Al Tamimi & Company

See the legal services provided by the author of International > Saudi Arabia, including any discounts/offers for subscribers.

Summary

• Pay rates are generally set by the individual employment contract. (See Pay - general)
• Employees whose remuneration is calculated on a monthly basis must be paid at least once a month, while other employees, such as those whose remuneration is calculated on a daily basis, must be paid at least every week. (See Payment of wages)
• The employer must not make deductions from an employee's pay without the employee's written consent, except for certain specified reasons. (See Deductions)
• Discrimination in pay is prohibited between male and female workers who perform work of equal value. (See Equal pay)
• There is no statutory national minimum wage (the Government is empowered to set such a minimum wage, but has not done so to date). (See Minimum wages)
• Employers must deduct the state pension contributions of relevant employees from pay at source and pass them on to the General Organisation for Social Insurance, along with the employer's contributions. (See Pensions)
• There is no system of personal income tax. (See Income tax and social security)
• Employees are eligible for sick leave if they are absent from work owing to a medically certified illness or injury, and are entitled to be paid for some of this absence. (See Sick pay)
• Employers may provide employees with benefits in kind. (See Benefits in kind)