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Saudi Labour Law

Official Saudi Labour Law, covering:

 

Saudi Arabia’s labor laws, governed by the Saudi Labor Law (Royal Decree No. M/51 of 2005) and its amendments, regulate employment rights and obligations.

  1. Employment Contracts: Contracts must be in writing, specifying salary, job role, and conditions, with Arabic as the official language.

  2. Working Hours & Overtime: The standard workweek is 48 hours (8 hours per day, 6 days a week), reduced to 36 hours during Ramadan. Overtime is paid at 150% of the regular wage.

  3. Wages & Salary Protection: The Wage Protection System (WPS) ensures timely salary payments. There is no fixed minimum wage except for Saudi nationals, who must receive at least SAR 4,000 per month for Nitaqat compliance.

  4. Leave & Holidays: Employees receive 21 days of paid annual leave, increasing to 30 days after five years. Maternity leave is 10 weeks, and fathers get 3 days of paternity leave.

  5. End of Service Benefits (ESB): Employees get half a month’s salary per year for the first 5 years, and one full month’s salary per year thereafter as gratuity.

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