Compensation and benefits

Q. What are the employee benefits in Saudi Arabia? 

It’s important for Saudi Arabia-based employers to provide employees with:

• Supplementary health insurance.
• Plane tickets to go home for vacation.
• Money for education expenses.
• Retirement plans.
• Mobile phones.
• Housing allowances.
• Transportation allowances.

Also Read: Termination and Severance Pay in UAE

Q. What is the minimum salary in Saudi Arabia? 

There's no minimum wage for private-sector workers. However, public sector employees get a minimum of 4,000 SAR monthly. Overtime payment is 100% of the normal hourly rate, with a 50% bonus for Friday or public holiday work.

Q. What happens if someone is permanently partially disabled due to an injury at work in Saudi Arabia?

As per the Saudi laws, if a person gets injured at work which leads to permanent partial disability, the person will receive compensation. 

Q. What health insurance benefits are provided under the KSA law?

In Saudi Arabia, medical insurance is compulsory and is provided by private insurers. Employers must give medical insurance to all employees (Saudi nationals and expatriates), their families, and dependents without any number limitation.

Q. Who are eligible for end-of-service benefits in Saudi Arabia?

If a worker works for more than 5 years but less than 10, they get two-thirds of the benefits as dictated in the Saudi labor laws. If they work for 10 years or more, they receive the full end-of-service benefits.

Also Read: What are Voluntary Benefits? 

Q. Does a worker get benefits if they resign after a certain period of service in Saudi Arabia?

Yes, if a worker resigns after working with the organization for 2-5 consecutive years, they get one-third of the award. For service over 5 years but less than 10, it's two-thirds. If their service is 10 years or more, they receive the full award.

Q. What benefits does a female employee receive if she ends her contract soon after marriage or childbirth in Saudi Arabia?

If a female employee ends her contract within six months of marriage or three months of giving birth, she is entitled to the full award.

Also Read: What is Holiday pay?

Q. How is severance pay calculated for foreign employees in Saudi Arabia?

As per the Saudi law, foreign employees in Saudi Arabia are entitled to a generous severance pay. The calculation is based on their final salary and length of service:

• For the first five years of work, they receive 15 days of wages for each year.
• After five years, they get a full month's wages for every additional year of employment.

This severance package is different for Saudi Arabian citizens. Their entitlement depends on their employment contract.

Also Read: Leaves Policy in Saudi Arabia