Expat workers make up a large part of the labor market in the Kingdom, and they have a special status when it comes to salaries, deductions, and rights. This guide brings together the most important things a resident needs to know: from tax and social insurance, to the work contract, end-of-service benefits, and job transfer through the Qiwa platform.
In this guide
1. Do expats pay income tax?
There is no income tax on individuals’ salaries in the Kingdom of Saudi Arabia, neither for a Saudi nor for an expat. This means the salary agreed in your contract reaches you with no tax withholding. Value Added Tax (15%) is levied on goods and services at the point of purchase, and is not a deduction from your salary.
2. Are GOSI deductions taken from expats?
A non-Saudi employee is not subject to pension or SANED (unemployment insurance) contributions, so no insurance deduction appears on their payslip. Their coverage is limited to the Occupational Hazards branch (2%), which the employer pays in full and which is not deducted from the salary. The result:
An expat’s net salary equals their full gross salary (no insurance deduction and no income tax).
Compare this with the Saudi deduction in the GOSI guide, and calculate your salary using the salary calculator (turn off the “Saudi employee” option).
3. The expat work contract
An expat worker’s contract is always fixed-term, and tied to the work permit (work document). If the contract duration is not stated, the duration of the work permit is treated as its term. When the term ends, the contract is renewed or it expires. An expat is advised to keep an authenticated copy of the contract through the Qiwa platform to safeguard their rights.
4. End-of-service benefits for expats
An expat is entitled to end-of-service benefits under the same rules as a Saudi in the private sector (Article 84):
- Half a month’s wage for each of the first 5 years.
- A full month’s wage for each year after 5 years.
- The entitlement percentage on resignation varies by length of service (the same brackets as for a Saudi).
Calculate your benefit precisely using the end-of-service calculator.
5. Job transfer via Qiwa
The Labor Reform Initiative gave expats greater flexibility to move between employers through the Qiwa platform. A job transfer can be requested in cases such as:
- Expiry of the contract term without renewal.
- The expat not being enrolled in the Wage Protection System, or the salary being delayed for a set period.
- The passing of a certain period from the start of the contract, in line with the published conditions.
The details and periods vary according to official updates; refer to the Qiwa platform and the Ministry of Human Resources for your specific case.
6. Expat rights and wage protection
- Wage Protection (WPS): your salary is paid through an approved bank on time, and you have the right to file a complaint when it is delayed.
- Working hours and leave: the same Labor Law limits (8 hours a day, 21 days’ annual leave).
- Overtime: hourly wage × 1.5 in the private sector.
- Unfair dismissal: the Article 77 compensation applies to expats as well.
Learn about your full rights in the Labor Law guide, and salary delay and wage protection.
Frequently Asked Questions
Are social-insurance (GOSI) deductions taken from an expat’s salary?
No. A non-Saudi employee is not subject to pension or SANED contributions; those apply to citizens only. As a result, an expat’s net salary equals their full gross salary — no insurance deduction and no income tax.
Do expats pay income tax on their salary in Saudi Arabia?
No, there is no income tax on individuals’ salaries in the Kingdom, whether for a Saudi or an expat. Value Added Tax (15%) is levied on goods and services and is not a deduction from your salary.
Is an expat entitled to end-of-service benefits?
Yes. End-of-service benefits apply to all private-sector workers without any distinction between a Saudi and a resident, under the same Article 84 formula: half a month’s wage for each of the first 5 years, and a full month’s wage for each year thereafter.
Can an expat transfer their services without the sponsor’s approval?
Under the Labor Reform Initiative, an expat can request a job transfer through the Qiwa platform in certain cases and conditions (such as contract expiry, salary delay, or after a set period of the contract), without needing the employer’s approval in those cases.
Does the Wage Protection System apply to expats?
Yes, the Wage Protection System (WPS) covers all workers including expats, and obliges the employer to deposit the salary through an approved bank on time. An expat has the right to file a salary-delay complaint just like a Saudi.
Official sources
The figures and rules on this page are based on the following official references:
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