Saudi Arabia is becoming a global hiring hub across sectors like fintech, oil and gas, healthcare, SaaS, and professional services. With no personal income tax, a growing private sector, and Vision 2030 reforms, it offers an ideal environment for remote hiring. However, employers must comply with Saudi labor laws, Saudization quotas, GOSI registration, Iqama sponsorship, and Arabic employment contracts. One critical early step is issuing compliant offer letters that define salary, benefits, and responsibilities. These documents help set clear expectations and ensure legal alignment. To simplify this process, many companies partner with an Employer of Record (EOR), which manages visa sponsorships, onboarding, contract localization, and regulatory compliance. This guide offers a step-by-step approach to drafting and sending legally compliant offer letters through an EOR, helping global employers scale remote teams in Saudi Arabia efficiently and without risk.
Table of Contents
- Key Takeaways
- Job Offer Letter & Onboarding Flow for a Remote EOR Employee
- Offer Letter vs Employment Contract in Saudi Arabia
- When Should a Job Offer Letter Be Sent?
- What Salary Details Must Be in the Offer Letter?
- Job Offer Letter Checklist for Saudi Arabia
- Conclusion
- FAQs
Key Takeaways
- Learn how to structure compliant offer letters under Saudi labor law
- Understand the differences between offer letters and Arabic employment contracts
- Follow a proven step-by-step offer and onboarding flow tailored for Saudi Arabia
- Discover how an EOR simplifies hiring, documentation, and visa sponsorship
Job Offer Letter & Onboarding Flow for a Remote EOR Employee
Hiring remote employees through an EOR in Saudi Arabia follows a collaborative process between the client and the EOR:
- Candidate Selection – The employer shortlists and interviews the ideal candidate.
- Offer Drafting – The employer prepares a basic offer with job role, compensation, and benefits.
- EOR Review – The EOR localizes the offer, ensuring alignment with Saudi Labor Law and translating it into Arabic if necessary.
- Candidate Acceptance – The employee reviews the offer, negotiates terms (if needed), and provides formal acceptance.
- Employment Contract – The EOR issues a bilingual (Arabic-English) legally binding contract and submits it to relevant authorities.
- Government Processing – The EOR handles Iqama application, medical checkup, insurance, and GOSI registration.
Offer Letter vs Employment Contract in Saudi Arabia
- Job Offer Letter: A non-binding document summarizing the intent to hire. Includes general terms such as job title, salary, benefits, joining date, and reporting manager.
- Employment Contract: A formal, legally binding agreement in Arabic, governed by Saudi Labor Law and registered with the Ministry of Human Resources and Social Development (MHRSD).
Note: While the offer letter sets expectations, only the signed Arabic employment contract is enforceable under Saudi labor regulations.
Suggested Read: Pay Contractors in Saudi Arabia: The Ultimate Guide to Hiring
When Should a Job Offer Letter Be Sent?
Ideally, the offer letter should be issued within 24–48 hours after the final interview to maintain candidate engagement. A timely offer reinforces interest and sets a positive tone for onboarding. Delays can cause uncertainty, reduce acceptance chances, and lead to candidate drop-offs. This risk increases in Saudi Arabia’s competitive hiring market.
The offer letter should include the following key elements:
- A deadline to respond (typically within 3–5 business days)
Setting a response deadline creates urgency and allows the employer to plan onboarding timelines efficiently. It also ensures clarity for both parties during the decision-making process. - Tentative joining date and visa timeline
Mention an estimated start date and outline the expected visa or Iqama processing window. This helps manage expectations and gives the candidate a clear idea of onboarding duration. - Basic summary of job title, location (remote or hybrid), and benefits
Clearly state the role, reporting structure, working arrangement, and highlights of the compensation package—such as allowances, medical insurance, or airfare reimbursements. - HR or hiring manager contact details for further communication
Provide direct contact information for follow-up questions or clarification. This adds a personal touch and encourages open communication.
Issuing the offer promptly with all necessary information not only improves the likelihood of acceptance but also reflects the company’s professionalism and commitment to compliance and clarity in international hiring.
What Salary Details Must Be in the Offer Letter?
Saudi Arabia, like the UAE, uses a structured format for presenting salary details in offer letters. To ensure legal compliance and prevent confusion, employers should include the following:
- Gross monthly salary with basic and allowance split
Clearly state total pay, distinguishing between fixed basic salary and additional allowances. - Allowance breakdown: housing, transport, education (if applicable)
List each allowance separately to ensure full transparency and compliance with labor regulations. - Medical insurance and airfare (if offered)
Specify whether the employer will cover health insurance and annual flight benefits. - GOSI compliance and monthly salary frequency
Confirm alignment with GOSI requirements and that salaries will be paid monthly. - Gratuity eligibility based on basic salary
Mention that end-of-service benefits are calculated only on the basic salary component.
Including these details upfront reduces ambiguity, builds trust with candidates, and ensures the offer letter fully complies with Saudi labor law, facilitating a smooth transition to contract and onboarding.
Job Offer Letter Checklist for Saudi Arabia
Here’s a concise checklist to ensure your EOR-issued offer letter in Saudi Arabia meets all legal and onboarding requirements:
- Job title and summary: Clearly state the role and key responsibilities.
- Start date and work location: Mention joining date and whether the role is remote, hybrid, or location-based.
- Salary breakdown: Separate gross monthly pay into basic salary and allowances (housing, transport, etc.).
- Medical insurance & GOSI: Confirm health coverage and GOSI registration as per Saudi labor law.
- Gratuity, probation, and hours: Outline end-of-service benefits, probation period, and weekly working hours.
- Visa and Iqama sponsorship: Ensure EOR handles full sponsorship and related procedures.
- Arabic contract note: State that the final contract will be bilingual, with Arabic as the legally binding version.
- Response deadline and HR contact: Include a clear deadline and contact for any follow-up.
- Acceptance declaration: Add a section for e-signature or formal acceptance of the offer.
Suggested Read: EOR Saudi Arabia: A Detailed Guide 2025
Conclusion
Drafting a compliant, clear job offer letter is essential when hiring remote employees in Saudi Arabia through an EOR. Saudi labor law requires Arabic contracts, Saudization compliance, GOSI registration, and Iqama sponsorship. Partnering with a Saudi-based EOR ensures professional handling of all legal employment requirements. An experienced EOR like Asanify helps international companies localize and issue compliant offer letters. They prepare bilingual Arabic contracts, sponsor Iqamas, and manage onboarding from start to finish. Whether hiring tech talent in Riyadh or support teams in Jeddah, EORs simplify the process. Following this guide ensures smooth, compliant, and efficient remote hiring across Saudi Arabia.
FAQs
No, only the Arabic employment contract registered with MHRSD is legally binding.
Not required for the offer letter, but the final employment contract must be in Arabic (and optionally English).
Usually 90 days, but it can extend up to 180 days based on the agreement.
15 days of basic salary per year for the first five years; one month per year thereafter.
Yes, EORs issue both documents and act as the legal employer.
Yes, bonuses may be included as discretionary or performance-based benefits.
Health insurance, end-of-service gratuity, annual leave, and airfare.
Yes, but clear communication and documentation are recommended to avoid disputes.
Yes, allowances like housing and transport must be clearly mentioned for transparency and GOSI compliance.
GOSI (General Organization for Social Insurance) registration is mandatory for all Saudi-based employees.
Yes, EORs manage all legal onboarding steps including Iqama issuance and renewals.
Most EORs support full-time employment with full legal sponsorship; part-time options may be limited.
Yes, every employee must have valid health insurance before Iqama issuance.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
