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Verified: main employer charges cited
Mandatory employer contributions in Saudi Arabia
| Contribution | Employer rate | Monthly cap |
|---|---|---|
| Occupational hazard (non-Saudi employees) | 2.0% | 45,000 SAR/month |
Who these rates cover: expatriate employees.
Employer cost at three salary levels
| Annual salary | Employer contributions | On-cost % | Total cost | Total in USD |
|---|---|---|---|---|
| 130,000 SAR | 2,600 SAR | 2.0% | 132,600 SAR | $35,360 |
| 259,000 SAR | 5,180 SAR | 2.0% | 264,180 SAR | $70,448 |
| 518,000 SAR | 10,360 SAR | 2.0% | 528,360 SAR | $140,896 |
The examples use 1×, 2× and 4× Saudi Arabia’s 2025 GDP per person in local currency (129,512 SAR, World Bank) as reference salaries. GDP per person is not a wage; it is a neutral, cited yardstick for low, middle and senior pay.
Worked example
For a salary of 259,000 SAR a year, the employer adds about 5,180 SAR (2.0%) in mandatory contributions, for a total of 264,180 SAR, about $70,448 at the 2025 average exchange rate. The rate is roughly flat across salaries (2.0% to 2.0%), so on-costs scale with pay.
What is not included
- For Saudi nationals the employer pays 11.75% (9% social insurance, 2% hazard, 0.75% SANED). Base is basic salary plus housing, capped at SAR 45,000 a month.
How to budget a hire in Saudi Arabia
- Start from the gross salary you plan to offer in SAR.
- Add the mandatory contributions above. The calculator applies caps and salary bands automatically.
- Add benefits customary in Saudi Arabia (health cover, bonuses, extra month salaries) as a percentage in the calculator.
- If you have no local entity, add an employer-of-record fee. Deel and Remote both list EOR from $599 per employee per month on their public pricing pages (checked 23 October 2026).
- Convert to your budgeting currency with a current rate. The USD figures here use the World Bank 2025 average.
Compare Saudi Arabia with other countries in the any-country comparison, or see whether an EOR, contractor or own entity is cheaper.
Source: PwC Worldwide Tax Summaries: Saudi Arabia, other taxes, last reviewed 29 July 2026 (checked 23 October 2026). Exchange rate and GDP per capita: World Bank (2025, indicators PA.NUS.FCRF and NY.GDP.PCAP.CN). HireCost transcribes the rates; it does not invent or estimate missing ones.
Frequently asked questions
How much does it cost to employ someone in Saudi Arabia?
On a salary of 259,000 SAR, mandatory employer contributions add about 2.0%, for a total of roughly 264,180 SAR a year before benefits (PwC, reviewed 29 July 2026).
What are employer social security contributions in Saudi Arabia?
Occupational hazard (non-Saudi employees) 2.0%.
Is the Saudi Arabia data verified?
Yes: every rate is transcribed from PwC Worldwide Tax Summaries and dated.