Learn the steps, compliance rules, salary structures, and total costs to successfully hire remote team in Saudi Arabia. This guide covers the country’s employment landscape, in-demand skills, labor laws, and the benefits of using an Employer of Record (EOR) to streamline global hiring.
Saudi Arabia is rapidly becoming a strategic location for remote hiring in 2025. With a growing economy fueled by Vision 2030 reforms, digital transformation initiatives, and diversified industries like technology, finance, and energy, the Kingdom offers an emerging pool of skilled professionals. Combined with a favorable business environment for international companies, Saudi Arabia presents a unique opportunity for building high-performing remote teams.
Table of Contents
- Overview of Saudi Arabia for Remote Hiring
- Leading Industries Driving Employment in Saudi Arabia
- Industry Landscape Snapshot
- Cost of Living for Remote Employees in Saudi Arabia
- In-Demand Skills in Saudi Arabia (2025)
- Key Legal Considerations for Hiring in Saudi Arabia
- Payroll and Tax Compliance in Saudi Arabia
- Using an EOR for Payroll and Compliance
- Salary Ranges for Remote Roles in Saudi Arabia (2025)
- Steps to Hire a Remote Team in Saudi Arabia
- Total Cost of Hiring Remote Employees in Saudi Arabia
- How Can Asanify Simplify Hiring in Saudi Arabia?
- Conclusion
- FAQs
Overview of Saudi Arabia for Remote Hiring
Saudi Arabia is the largest economy in the Middle East, strategically located to connect Asia, Africa, and Europe. Its workforce is young, increasingly educated, and supported by government initiatives to enhance digital and technical skills. Strong infrastructure—reliable internet, co-working hubs in major cities like Riyadh and Jeddah, and modern corporate facilities—supports remote work adoption.
The country’s business-friendly reforms, tax-free salaries for employees, and simplified company registration processes make it increasingly attractive for international employers.
Leading Industries Driving Employment in Saudi Arabia
Key industries leading remote hiring demand in 2025 include:
- Information Technology & Digital Services: Software engineering, cloud computing, and cybersecurity roles are in high demand as the Kingdom embraces digitization.
- Energy & Renewable Resources: While oil remains central, the push towards renewables and sustainable energy is creating new opportunities.
- Financial Services & Fintech: Riyadh is positioning itself as a regional financial hub, driving demand for accountants, analysts, and compliance specialists.
- Healthcare & Life Sciences: Expansion of hospitals, telemedicine, and biotech research are increasing skilled workforce needs.
- Logistics & E-commerce: The rise of e-commerce platforms and Saudi’s strategic trade position boost roles in supply chain and logistics.
Industry Landscape Snapshot
Saudi Arabia’s economy combines major multinational corporations, thriving small and medium-sized enterprises (SMEs), and a rapidly expanding startup ecosystem. Many of its startups focus on sectors like fintech, e-commerce, and AI, fueled by the government’s Vision 2030 initiatives. The Kingdom actively promotes innovation through investment incentives, accelerators, and support for R&D in areas like renewable energy, smart cities, and advanced technologies.
Remote work adoption is steadily increasing in these sectors, enabling global companies to leverage Saudi expertise for regional and international projects without the need to establish a physical presence in the country.
Cost of Living for Remote Employees in Saudi Arabia
The cost of living in Saudi Arabia varies by city, with Riyadh and Jeddah being more expensive than Dammam or Khobar. Salaries are tax-free for employees, which increases net earnings and attractiveness for remote roles.
| Expense Category | Typical Monthly Cost (SAR) | Notes |
| Housing | 2,500 – 5,000 | Higher in Riyadh; lower in Dammam |
| Utilities | 400 – 700 | Electricity, water, and internet |
| Transport | 300 – 600 | Ride-hailing and public transport options |
| Food & Groceries | 1,200 – 2,000 | Depends on lifestyle and family size |
| Leisure & Miscellaneous | 600 – 1,200 | Includes gyms, entertainment, and shopping |
Overall, Saudi Arabia offers competitive living costs for skilled remote employees, especially given the absence of personal income tax.
In-Demand Skills in Saudi Arabia (2025)
Top skills align with Saudi Arabia’s diversification goals:
- Technology & IT: Software development, AI, cloud, and cybersecurity
- Finance & Accounting: IFRS, risk management, and compliance
- Data Analytics: Machine learning, data engineering, and BI tools
- Healthcare & Life Sciences: Clinical research, telemedicine, and biotech
- Multilingual Customer Support: Arabic and English proficiency is highly valued
These skills are in strong demand for remote and hybrid positions serving both local and international projects.
Suggested Read: Labour Laws in Saudi Arabia (2025): A Complete Guide
Key Legal Considerations for Hiring in Saudi Arabia
Hiring remote team in Saudi Arabia requires strict adherence to Saudi Labor Law, social insurance regulations (GOSI), and proper worker classification to ensure compliance. Employers must follow rules covering employment contracts, end-of-service benefits, work permits for foreign employees, and statutory contributions. Failure to comply can lead to penalties, audits, or reputational risks. Understanding Saudi labor regulations is essential for building a compliant remote team.
Employment Laws
Saudi Arabia’s labor laws protect workers’ rights while defining employer obligations. Employers must comply with regulations related to wages, leave, workplace safety, and termination procedures. Non-compliance may result in fines, labor disputes, or restrictions on future hiring.
- Follow Saudi Labor Law provisions on salaries, benefits, and employee protection.
- Adhere to mandatory social insurance (GOSI) for Saudi nationals.
- Maintain valid work permits and visas for foreign employees.
- Non-compliance can result in fines, inspections, or suspension of work permits.
Work Hours and Overtime
The standard workweek in Saudi Arabia is 40–48 hours, generally across 5 or 6 days. Overtime is strictly regulated, with compensation requirements, and working hours are reduced during Ramadan for Muslim employees. Employers must monitor working hours closely to avoid violations.
- Standard workweek: 40–48 hours.
- Overtime requires premium pay, usually 1.5x the hourly rate.
- Shorter working hours apply during Ramadan for Muslim employees.
- Failure to comply with work hour laws can trigger inspections or fines.
Employment Contracts
Written employment contracts are mandatory in Saudi Arabia and must outline job responsibilities, salary, benefits, leave entitlements, and end-of-service provisions. Contracts can be fixed-term or indefinite, with specific rules for termination and renewal.
- Contracts must clearly define job role, compensation, and benefits.
- Include working hours, probation period, and notice period.
- End-of-service benefits (gratuity) are mandatory under Saudi law.
- Distinct rules apply to fixed-term and indefinite contracts.
Worker Classification
Proper worker classification is crucial to avoid misclassification risks. Employees are under company control and entitled to full labor law protections, while contractors operate independently. Misclassifying employees as contractors can result in fines, back payments, or labor disputes.
- Employees receive full benefits and are registered under GOSI (if Saudi nationals).
- Contractors are independent and handle their own tax and insurance obligations.
- Misclassification can lead to penalties, backdated contributions, and legal action.
- Clear contracts and accurate role definitions reduce compliance risks.
Payroll and Tax Compliance in Saudi Arabia
Employers in Saudi Arabia must comply with strict payroll and tax regulations to ensure accurate employee compensation and statutory contributions. This includes managing salaries, social insurance contributions (GOSI), and visa or residency-related obligations for expatriates. Non-compliance can lead to fines, audits, and operational delays, making robust payroll processes essential for companies operating in the Kingdom.
Payroll Taxes and Deductions
Saudi Arabia does not impose personal income tax on employees. However, employers must manage social insurance contributions for Saudi nationals and handle other statutory obligations for both local and foreign employees.
- Deduct and remit employee GOSI contributions (10% of salary) for Saudi nationals.
- Ensure employer GOSI contributions are paid monthly to cover pensions and workplace insurance.
- Expatriate employees are exempt from GOSI but require health insurance and proper visa sponsorship.
- Accurate and timely payments help avoid fines or compliance issues with the Ministry of Human Resources.
Employer Contributions
Employers in Saudi Arabia are responsible for social insurance and other employment-related contributions that protect workers and ensure regulatory compliance.
- Employer GOSI contribution: ~12% of the employee’s gross salary for Saudi nationals.
- Covers: Pensions, work injury insurance, and social security benefits.
- No GOSI contribution for foreign employees, but employers must provide health insurance.
- Late or incorrect payments can lead to penalties or audits by GOSI authorities.
Employee Benefits
Saudi Arabia mandates several employee benefits to protect workers and comply with labor laws. While some are statutory, many companies also offer additional perks to attract top talent.
- Mandatory benefits: Paid annual leave (21–30 days), public holidays, and end-of-service gratuity.
- Health insurance: Required for all employees, including expatriates.
- Optional perks: Housing allowances, transportation, performance bonuses, and flight allowances.
- Compliance with benefit requirements ensures employee satisfaction and legal protection.
Using an EOR for Payroll and Compliance
Companies can simplify payroll, social insurance, and benefits management in Saudi Arabia by partnering with an Employer of Record. An EOR ensures accurate payroll processing, full compliance with labor laws, and efficient onboarding of both local and expatriate employees.
- Handles payroll, GOSI contributions, and visa-related obligations in full compliance.
- Manages health insurance, leave entitlements, and other employee benefits.
- Reduces the risk of misclassification or non-compliance penalties.
- Enables faster and cost-efficient hiring without setting up a local entity.
Salary Ranges for Remote Roles in Saudi Arabia (2025)
| Role | Average Annual Salary (SAR) | Average Annual Salary (USD) | Notes |
| Software Developer | 180,000 – 240,000 | 48,000 – 64,000 | High demand for cloud and full-stack skills |
| Data Analyst | 150,000 – 200,000 | 40,000 – 53,000 | Rising demand with AI and BI projects |
| Project Manager | 200,000 – 260,000 | 53,000 – 69,000 | PMP-certified candidates earn more |
| Digital Marketing Specialist | 120,000 – 180,000 | 32,000 – 48,000 | Bilingual expertise is valuable |
| HR & Payroll Specialist | 140,000 – 190,000 | 37,000 – 50,000 | GOSI and compliance knowledge in demand |
| Customer Support Executive | 80,000 – 120,000 | 21,000 – 32,000 | Arabic-English bilingual roles pay higher |
| Finance & Accounting Analyst | 160,000 – 220,000 | 42,000 – 58,000 | IFRS and VAT expertise is preferred |
Steps to Hire a Remote Team in Saudi Arabia
Building a remote team in Saudi Arabia requires careful planning, legal compliance, and efficient processes. From defining the right roles to onboarding employees, each step ensures smooth operations and adherence to local labor laws.
Define Your Hiring Needs
Identify the roles, skills, and experience required for your remote team. Decide if you need full-time employees, contractors, or a blended workforce, and align these requirements with your business objectives and budget.
- Specify roles and key skills.
- Determine employee type: full-time, contractors, or a mix.
- Set workload expectations, project scope, and compensation.
Choose a Hiring Model
Select the model that best fits your compliance and operational needs.
- Direct Hiring: Requires a local Saudi entity and full labor law compliance.
- Contractor Hiring: Offers flexibility but poses misclassification risks.
- Employer of Record (EOR): Manages payroll, benefits, and compliance without a local entity.
Source and Interview Candidates
Use job boards, LinkedIn, and recruitment agencies to find qualified talent. Conduct structured interviews and assessments to ensure technical and cultural fit.
- Advertise on Saudi job boards and LinkedIn.
- Use recruitment agencies or global talent marketplaces.
- Conduct video interviews and skill evaluations.
Offer Letters and Contracts
Prepare compliant contracts per Saudi labor laws. Include salary, benefits, leave, and end-of-service gratuity.
- Define probation, notice periods, and working hours.
- Ensure compliance with GOSI and health insurance rules.
- EOR services can issue fully compliant contracts quickly.
Onboard and Manage Remote Employees
Provide clear onboarding, tools, and policies for seamless remote integration.
- Complete GOSI registration for nationals and health coverage for all employees.
- Implement HR and collaboration tools for performance management.
- Use project management platforms for remote efficiency.
Total Cost of Hiring Remote Employees in Saudi Arabia
| Role | Avg Gross Salary (SAR) | Employer Contributions (~12%) | Benefits Estimate | Total Cost (SAR) |
| Software Developer | 210,000 | 25,200 | 15,000 | 250,200 |
| Data Analyst | 175,000 | 21,000 | 12,000 | 208,000 |
| Project Manager | 230,000 | 27,600 | 18,000 | 275,600 |
| Digital Marketing Specialist | 150,000 | 18,000 | 10,000 | 178,000 |
| HR & Payroll Specialist | 165,000 | 19,800 | 12,000 | 196,800 |
| Customer Support Executive | 100,000 | 12,000 | 8,000 | 120,000 |
| Finance & Accounting Analyst | 190,000 | 22,800 | 14,000 | 226,800 |
Note: Excludes visa fees for expatriates; costs vary by city and EOR fees.
How Can Asanify Simplify Hiring in Saudi Arabia?
Asanify serves as an Employer of Record (EOR), overseeing payroll, employee benefits, compliant employment contracts, and all regulatory requirements for global companies. This enables organizations to hire faster, with employees onboarded in just 1–2 weeks, while maintaining full compliance to prevent misclassification and tax risks. It also ensures cost efficiency by eliminating the need for a local legal entity or complex administrative setup.
Additionally, Asanify manages social security contributions, tax filings, and Saudi labor law obligations, guaranteeing smooth and compliant cross-border operations. By centralizing HR, payroll processing, and compliance processes under one platform, Asanify allows businesses to focus on growth and expansion while seamlessly scaling their international teams.
Suggested Read: Remote Employees Onboarding Checklist with EOR in Saudi Arabia
Conclusion
Saudi Arabia is an attractive destination for hiring remote teams due to its expanding skilled workforce, strategic location in the Middle East, and rapidly growing economy under Vision 2030. By partnering with an Employer of Record provider, global businesses can streamline compliance with Saudi labor laws, speed up hiring timelines, and handle payroll and benefits seamlessly. This approach removes the need to establish a local entity while ensuring complete legal and administrative compliance.
FAQs
By establishing a local entity or using an EOR to legally employ staff without a local presence.
No, salaries are tax-free for employees; employers handle social insurance for Saudi nationals.
40–48 hours per week, with reduced hours during Ramadan for Muslim employees.
Health insurance, paid leave, end-of-service gratuity, and GOSI contributions for Saudi nationals.
Asanify manages payroll, contracts, benefits, and social insurance to ensure full legal compliance.
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.
