Saudi Labour Law Basics: A Guide for New Employers

New employers in Saudi Arabia handle most of their setup and workforce processes through the Ministry of Human Resources and Social Development's employer services and the قوى platform, with residence-related steps managed via مقيم. Understanding the core fees and compliance rules is essential before hiring.

Work permit fees for foreign workers are not a single flat amount. The reported current charge is SAR 700 rising to SAR 800 That works out to annual totals of SAR 8,400 and SAR 9,600 respectively. A separate work permit issuance or renewal fee of SAR 100

Contracts and Saudization

Employers use قوى for registration and to draft and manage employment contracts. Contract-documentation compliance was tightened for 2026, with Saudi contract documentation targets set to reach 90% by 30 June 2026. From 15 April 2026, only قوى-documented Saudi contracts will count toward the Nitaqat Saudization score. Under the 2026 changes, Premium Residency holders must also obtain a separate work permit through قوى for a fee of SAR 100.

Transferring an employee's sponsorship carries fees of SAR 2,000, SAR 4,000, or SAR 6,000, depending on the transfer count. In قوى, the new employer pays, the worker accepts within 10 days, and the current employer has 14 days to object on legal grounds.

Residence-related costs include an Iqama renewal fee of SAR 650 a dependent levy of SAR 400 per month (SAR 4,800 per year), and exit/re-entry visa fees ranging from SAR 200 to SAR 500. Importantly, employers bear recruitment and permit costs and cannot pass them on to the worker. All these processes run through قوى and مقيم under the ministry's labour compliance system.

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