Saudi Labor Law 2026 Guide

1. Scope of the Labor Law

The Labor Law applies to all private-sector employees, with specific exceptions:

• Covered: any worker employed for an employer, under their management or supervision, for a wage in the private sector.
• Excluded: government employees (under the Civil Service system and HR regulations), family members working for the employer, domestic workers (separate regulation), and club players/coaches under special rules.

If you are a government employee, see the government salary scales: the rules differ from the private sector.

2. Employment contract & probation

An employment contract is a written document, in two copies, setting out the nature of work, wage, and term. The law distinguishes two types:

• Fixed-term contract: has a start and end date. A non-Saudi worker's contract is always fixed-term; if no term is stated, the work-permit duration is treated as its term.
• Indefinite contract: available only to Saudis; it continues until either party ends it per the law.

Probation period

Probation may not exceed 90 days, extendable by written agreement up to a total of 180 days. Eid and weekly-rest days are not counted. During probation, either party may end the contract without an award, unless the contract says otherwise.

3. Working hours & rest

• Working hours: a maximum of 8 hours per day or 48 hours per week.
• Ramadan: reduced to 6 hours per day (36 per week) for Muslim employees.
• Rest breaks: no more than 5 continuous hours of work without a break for rest, prayer, and meals, and no more than 12 hours of total presence at the workplace per day.
• Weekly rest: Friday at full pay, no less than 24 continuous hours.

4. Overtime pay

Under Article 107, every hour worked beyond standard hours is overtime, paid at the hourly rate + 50% (i.e., hourly × 1.5). Work on the weekly rest day or public holidays counts fully as overtime. The annual overtime cap is 720 hours.

Calculate your overtime precisely for both private and government sectors with the overtime calculator.

5. Leave entitlements

Annual leave

At least 21 days of paid leave, rising to 30 days after 5 continuous years of service (Article 109).

Sick leave

Within a single year (Article 117): first 30 days at full pay, then 60 days at three-quarters pay, then 30 days unpaid.

Maternity leave

12 weeks for a working woman (Article 151), with a daily nursing hour on return. She may not be dismissed because of pregnancy or during maternity leave.

Other leave

• Occasion leave: 3 days for marriage, 3 days for the birth of a child, 5 days for the death of a spouse or a parent/child.
• Hajj leave: 10 to 15 days once during service for an employee with 2 years' tenure who has not performed it before.
• Exam leave: for an enrolled student, per the law's rules.
• Public holidays: Eid al-Fitr, Eid al-Adha, National Day, and Founding Day, at full pay.

6. Wages & wage protection

Wages are paid in the official currency (Saudi Riyal), and a monthly-paid employee is paid at least once a month. The Wage Protection System (WPS) requires private-sector firms to deposit salaries through approved banks no later than the 27th of the month, via the Mudad platform.

Track salary payment dates and compute your net pay after GOSI.

7. Termination & notice

Notice period

For an indefinite contract, the party ending it must notify the other in writing: 60 days if the employer terminates, and 30 days if the employee resigns (for monthly-paid staff).

Dismissal without award (Article 80)

An employer may dismiss without an award or notice in specific cases, including assault, gross breach of duties, forgery, disclosing work secrets, or unjustified absence for set periods, provided the employee is allowed to state their case.

Leaving with full rights (Article 81)

An employee may leave without notice and keep full rights if the employer breaches material obligations, commits fraud at contracting, exposes them to a serious hazard, or assaults them.

Compensation for unlawful termination

If a contract is ended for an invalid reason, the harmed party is owed compensation under Article 77 (unless agreed otherwise): 15 days' wage per year for an indefinite contract, or the wage for the remaining term of a fixed-term contract, with a minimum of two months' wage.

8. End-of-service benefits

Under Articles 84 and 85: half a month's wage for each of the first five years, and a full month's wage for each year thereafter, based on the last wage including fixed allowances. The entitlement percentage on resignation varies with length of service.

Calculate your benefit precisely (private and government sectors) with the end-of-service calculator.

9. Working women's rights

• Equal pay: wage discrimination between men and women for work of equal value is prohibited.
• Maternity leave: 12 weeks, with dismissal because of pregnancy or during maternity leave prohibited.
• Nursing hour: the right to a period or periods for nursing, not counted against working hours.
• Safe environment: the employer must provide appropriate protection and care.

10. Labor dispute resolution

A labor dispute typically moves through these stages:

• Amicable settlement: through labor offices, the Qiwa platform, and friendly-settlement units.
• Labor courts: if settlement fails, the dispute goes to the competent labor court.
• Wage complaints: a salary delayed beyond the legal period can be reported via the Mudad platform.

Always refer to the official text of the Labor Law or consult a specialist before taking formal steps, as the details depend on each case.