Traditionally, companies looking to expand to Saudi Arabia must set up payroll, hire employees, enact a benefit management plan, and manage compensation. This work is all on top of establishing a subsidiary...
Read MoreTraditionally, companies looking to expand to Saudi Arabia must set up payroll, hire employees, enact a benefit management plan, and manage compensation. This work is all on top of establishing a subsidiary to operate in the country legally. Globalization Partners can take the burden of compliance off your shoulders by hiring employees on your behalf and setting your payroll up according to Saudi Arabia's regulations.
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Traditionally, companies looking to expand to Saudi Arabia must set up payroll, hire employees, enact a benefit management plan, and manage compensation. This work is all on top of establishing a subsidiary to operate in the country legally. Globalization Partners can take the burden of compliance off your shoulders by hiring employees on your behalf and setting your payroll up according to Saudi Arabia’s regulations.
As an employer, you have to pay certain taxes on behalf of your employees and also make sure those employees are registered to pay taxes themselves. Employers are required to pay Saudi social insurance tax (GOSI) for every employee based on their basic salary. You should typically budget about 10% of the employer’s cost for this. You’ll also have to make a 2% contribution to occupational hazards insurance for all employees.
You have several Saudi Arabia payroll options, including:
Before you can set up your Saudi Arabia payroll, you have to establish a subsidiary. This process is often lengthy and can take several months or longer. Certain steps throughout the process may also have costs, making it important for companies to budget the correct amount. When you work with Globalization Partners, we will act as the Employer of Record, so you won’t have to establish a subsidiary. We can help you get started in a few days as well so that you can set up your payroll and hire talented employees right away.
Before you hire employees and establish payroll, it’s critical to outline entitlement and termination terms. Saudi Arabia allows probation periods up to 90 days based on an agreement with the employer and employee. Certain employment contracts include how much notice you must give employees before the end of employment, and once employment ends, an employee is entitled to an “end-of-service award” depending on their wages.
Globalization Partners will take the burden of compliance off your shoulders by hiring employees on your behalf and setting up your payroll according to Saudi Arabia’s regulations. You can trust us to help you grow in a new country. Contact us today to learn more.
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
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