Qoyod National Day offer: up to 50% off plans and add-ons · until 30 September See the details
Qoyod
Pricing
Qoyod
Pricing

Human Resources: The Complete Guide for Saudi Businesses

An organized reference for everything HR teams handle in Saudi Arabia: contracts, attendance, leave, the payroll run, wage protection, social insurance, end of service and Saudization, arranged in eight topics, with templates, calculators and glossary terms.

HR topics 8 topics

Start with the calculators

Frequently asked questions

How is end-of-service pay calculated under Saudi Labor Law?

Article 84 sets the award at half a month's wage for each of the first five years and one month's wage for each year after that, based on the last wage, pro rata for part of a year. Where the relationship ends by the worker's resignation, Article 85 reduces it by length of service: nothing under two years, one third from two to five years, two thirds over five and under ten, and the full award at ten years or more. Article 87 is an express exception to that scale: the full award is due regardless of length of service where the worker leaves as a result of force majeure beyond their control, or where a female worker ends the contract within six months of the date of her marriage contract or within three months of the date of giving birth. Article 81 likewise preserves all the worker's statutory rights in the cases it lists, so the Article 85 table must never be presented on its own.

How many days of annual leave is an employee entitled to?

Article 109 sets annual leave at not less than 21 days, rising to not less than 30 days once the worker completes five consecutive years with the same employer, paid in advance. The worker may not waive it or take cash instead while in service, and the employer sets the timing with at least 30 days' notice. On leaving, Article 111 entitles the worker to pay for accrued leave not taken, and pro rata for part of a year.

How is overtime pay calculated?

Article 107 requires the employer to pay, for overtime hours, the hour's wage plus 50% of the basic wage. Paid compensatory days off may replace it with the worker's consent.

What are the GOSI contribution rates for the employee and the employer?

Saudis registered before the new system started on 3 July 2024 stay at 9.75% for the employee and 11.75% for the employer, 21.5% combined. Saudi new entrants with no contribution periods before the system took effect fall under a stepped system in which the pension share rises 0.5% per side on 1 July each year: 9.5% from 1 July 2025, 10% since 1 July 2026, 10.5% from 1 July 2027 and 11% from 1 July 2028. At the current pension share that makes the total 10.75% for the employee and 12.75% for the employer once SANED at 0.75% per side and occupational hazards at 2% on the employer are added.

Where is the wage protection (WPS) file uploaded?

The WPS file is uploaded on the Mudad platform, not on Musaned, which covers domestic workers. In Qoyod HR the WPS file is ready from the payroll run itself.

What is the difference between an accounting system and personnel administration?

An accounting system records what payroll does to the books: the wage expense, the related liabilities and the journal entries behind them. An HR system runs the process before it ever reaches the books: the employee file and contract, attendance, leave, the payroll run and end-of-service entitlements. Qoyod HR is a standalone HR system on its own subscription, and the connection to Qoyod Accounting is now available.

Which documents should an employer keep for each employee?

An employee file usually holds the employment contract and its annexes, the ID or iqama with its expiry date, the offer letter and work commencement notice, the attendance record, approved leave requests and balances, salary components with allowances and deductions, professional certificates and licences with their validity dates, and finally the termination and clearance paperwork. What matters most is tracking expiry dates before they arrive.

How does Qoyod HR help with human resources management?

Qoyod HR is a standalone Saudi HR system on its own subscription, covering the employee lifecycle from contract to end of service: employee records, contracts and documents with their expiry dates, attendance, leave and balances from request to approval, the payroll run with its salary components and the WPS file ready from the run itself, branches, roles and permissions, and end of service with its entitlements. End-of-service, overtime and leave balance calculations are built into the system. The connection to Qoyod Accounting is now available.

The standalone Qoyod HR platform

Run your team on Qoyod HR

Employees, contracts, attendance, leave, the payroll run and end of service in one system, with end-of-service, overtime and leave balance calculations built in.

A standalone system on its own subscription that connects to your Qoyod Accounting account.