Saudi Labour Law: A Starter Guide for New Employers

New private-sector employers in Saudi Arabia face a set of core obligations from the moment work begins, covering registration, wage protection, and the rights of their workers. Getting these right early helps businesses avoid penalties and build a compliant workplace.

Every new establishment must be registered on the labour systems of the Ministry of Human Resources and Social Development, with the competent labour office notified once operations start. Employers are also required to create and maintain a قوى account, which is integrated with Saudiization (Nitaqat), Wage Protection (Mudad), social insurance (GOSI), and immigration status through مقيم.

Wage Protection System compliance runs through مدد, which links to قوى, GOSI, and identity verification via نفاذ or an أبشر-linked one-time password. To activate the platform, employers verify their identity, link the Commercial Registration number, confirm employee data pulled from قوى or GOSI, choose a compliance package, and upload monthly wage files.

Mudad subscription fees for 2026

Annual مدد fees vary by workforce size, starting at SAR 460 and rising to SAR 575 for 10–29 employees, SAR 690 for 30–59, and SAR 805 for 60–99. Payments are made inside the platform using Mada, Visa, or Mastercard, with VAT added and no separate SADAD biller code.

Beyond registration, employers carry clear duties toward staff. Forced labour is prohibited, wages may not be withheld without a judicial basis, and workers must be treated with respect. Employers must uphold equal opportunity and avoid discrimination based on race, colour, sex, age, disability, or marital status. They are also required to provide suitable housing and transportation, or appropriate allowances within salary. On termination, a free service certificate must be issued on request, stating start and end dates, profession, and last wage, without any statement that could harm the worker's reputation or future employment.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving