Spending too much on recruitment, payroll or global HR?
We help you find the Best Providers at the lowest cost.
Saudi Arabia has one of the largest economies in the Middle East. Known for its wealth in the oil and gas sector, the country boasts economic diversity and a skilled workforce. It is no surprise that companies look to expand in Saudi Arabia; however, they’re often hindered by complex labor laws and exorbitant administrative costs. Such legal complexities can make hiring and transferring foreign workers more difficult. Fortunately, partnering with an EOR will help you overcome obstacles from costly payroll and a lack of HR expertise to maintaining labor law compliance.
At RemotePad, our team of EOR and hiring experts has worked extensively to bring you a list of the top six EOR services in Saudi Arabia. Whether you need to outsource HR or manage your workforce abroad, our comprehensive list can connect you to trusted international providers.
From hiring employees to guaranteeing compliance, discover how the best EORs in Saudi Arabia can make your business expansion goals a reality.
A Saudi Arabia Employer of Record, or EOR, is an independent service provider specializing in HR, payroll, benefits administration, tax withholding, and onboarding. The EOR agency has infrastructure in Saudi Arabia, allowing it to serve as the legal employer of your workforce. This means that you can hire employees through the EOR without establishing a legal entity in the country.
An EOR agency in Saudi Arabia is familiar with local labor laws governed by the Royal Decree M51/1426. They combine expertise and technology through employee management platforms to keep you compliant. In addition to online employee management, the service provider drafts employment contracts and handles offboarding. To save administrative costs, the EOR handles your HR functions and connects you to top talent through recruitment networks.
When you’re ready to hire a workforce, consider the following list of leading EOR companies in Saudi Arabia.
To help you navigate Saudi Arabia’s labor regulations and business customs, Remote People provides a self-management platform and dedicated support. Providing EOR services for over 150 countries, the global company helps businesses expand in Saudi Arabia with payroll, tax, onboarding, and recruitment solutions.
Remote People’s EOR is considered a client-centered service provider. The firm’s in-country experts are knowledgeable in Saudi Arabia’s local labor regulations and customs, simplifying compliance. Whether you are onboarding new employees or handling tax remittances, the top EOR ensures these processes align with legal standards. This level of workplace and business compliance protects against the penalties of violating the local labor regulations. It also prevents costly delays and reputational damage.
You may be pleased to discover that Remote People has one of the largest recruitment networks, in which thousands of vetted candidates seek employment opportunities. The professional recruitment team can quickly connect employers to skilled workers, and they’ll handle tasks, such as background checks and interviews.
Remote People’s EOR in Saudi Arabia is favored for its global payroll platform with integrated compliance. You can pay employees, administer benefits, and perform tax reporting, all from the secure system.
The Employer of Record stands out for its recruitment services, allowing you to quickly and easily source and place talented employees. If you are looking to hire foreign workers in the Middle Eastern country, Remote People delivers work visa assistance.
| Pros | Cons |
|---|---|
| Remote People has a dedicated support team for all clients. | Not all EOR services are available in every country. |
| Recruitment services streamline hiring top talent. | Currently lacks integrations. |
| Rapid onboarding and candidate placement. | Â |
The major EOR platform by Deel includes employee management, payroll, HR, and compliance integration. The Employer of Record delivers services in more than 150 countries, including Saudi Arabia. While Deel’s payroll and workforce management system can be complex for first-time users, it provides a range of services for business expansion. Partnering with Deel’s EOR, you can employ workers without a legal entity.
Deel is one of the major global EORs that allows clients to handle their employees’ needs on one secure platform. Whether you are interested in cost-effective payroll solutions or drafting compliant employment contracts, the service provider allows you to perform these tasks from a single system. This facilitates global workforce management and reduces the associated expenses, as you don’t need additional third-party services or an in-house HR team.
To attract Saudi Arabia’s most talented employees, Deel helps with valuable benefits packages, such as private healthcare. Furthermore, employers can utilize advanced tools on Deel’s EOR platform to support hiring, onboarding, and ease administration.
To ease the hiring process while guaranteeing compliance, Deel has launched several tools to support global businesses. This includes the mobility support tool, which is an end-to-end service, helping employers with international hiring and employee management. The goal is to reduce the administrative costs and complexities associated with establishing a workforce abroad.
What is unique about Deel is its mobility support tool, which is designed to make the international hiring process more efficient. Businesses can save on administrative costs and entrust HR to a professional team when employing new staff. The system also handles employee offboarding, so you can legally terminate employment contracts.
The employee management tool customizes stipends and allows you to add signatures to bonuses. This gives clients more flexibility while maintaining compliance with Saudi Arabia’s labor regulations.
| Pros | Cons |
|---|---|
| Experts are available for each country to advise on HR and labor laws. | First-time clients may find the workforce platform challenging to use. |
| Employees can be onboarded and managed on Deel’s platform. |  |
| Benefits packages are available on a global scale. | Â |
To learn more, be sure to read our in-depth review of Deel.
Previously known as Velocity Global, the EOR has rebranded under the name Pebl. The EOR provider offers payroll, HR administration, and tax reporting services in Saudi Arabia and just over 185 countries. By partnering with Pebl, clients can hire workers in the Middle East without the need to establish a legal entity.
Pebl is known for handling administration and backend compliance on behalf of its clients. The EOR firm hires and manages global employees as per local labor laws. Businesses can expand into Saudi Arabia without the time and costs of registering a commercial business. The service provider incorporates AI services to facilitate HR administration and improve the overall user experience on the platform. This includes the introduction of an AI assistant that produces country-specific information, from compliance to managing payroll.
In-country professionals offer guidance on employment regulations. The AI assistant provides EOR guidance in more than 50 languages, from estimates to compliance risks. Furthermore, Pebl makes integration with existing HR platforms easier, which means getting your business operational in a shorter period.
Its AI tools accelerate the onboarding process by verifying specific documents and reviewing contracts. Employees are onboarded in days rather than weeks or months, which means less downtime.
| Pros | Cons |
|---|---|
| Employees are managed through a single, secure workforce platform. | Pebl has high monthly costs. |
| An experienced team and sophisticated technology maintain compliance. | Â |
When expanding your workforce, Oyster HR provides EOR services in more than 180 countries, including Saudi Arabia. The dedicated Employer of Record supports payroll management in different currencies. Oyster’s EOR includes a workforce management platform where you can handle payroll and draft employment contracts. Compliance is integrated into the platform, simplifying employee management.
Oyster HR is a reliable EOR provider assisting its clients with hiring and payroll processing. The agency introduces EOR educational guides on its website to equip clients with knowledge in hiring employees abroad. This includes comparing the costs of employing full-time workers compared to independent contractors in Saudi Arabia. While not a part of its EOR service, Oyster HR also provides employee development and training.
Oyster HR’s EOR allows you to hire employees in Saudi Arabia without registering a legal entity. Their services include support for payroll management, employee onboarding, and processing benefits, such as social security contributions. The company is well-known for its rapid onboarding, which means faster market entry. International employees can be tracked and paid using the single platform. Lastly, Oyster HR has a support team to assist with EOR requirements.
| Pros | Cons |
|---|---|
| International benefits packages are available to attract and retain employees. | Clients are restricted to standard contract templates and HR workflows. |
| Quick onboarding. | The support team can take some time to respond to queries depending on the time zone. |
| HR services and integrated compliance minimize legal issues. | Â |
To find out more, check out our in-depth review of Oyster HR.
Hiring a Saudi Arabian workforce is more cost-effective with the expertise of Globalization Partners EOR. The service provider offers clients employee management solutions from payroll and HR to tax reporting and compliance. Delivering EOR services in more than 180 countries, G-P continues to assist international employers with dedicated support and expertise.
Globalization Partners emphasizes compliance by ensuring that your company adheres to Saudi Arabia’s labor laws. The service provider assists with drafting legally binding employment contracts covering working hours, salaries, and mandatory benefits. G-P consists of a technologically advanced employee management platform. By accessing expert support and AI tools, clients can manage HR, process employee benefits, and pay employees in the relevant currencies.
When you choose G-P as your EOR partner, you can rest assured that employee management is simplified and compliant. Clients can manage employee compensation, from ensuring that the workforce is paid on time to administering mandatory and fringe benefits.
In addition to overseeing the employment lifecycle, you can facilitate employee relocations across multiple countries. Lastly, contractors can be legally hired through the platform.
| Pros | Cons |
|---|---|
| In-country experts provide legal compliance. | Clients pay an extra fee for employee relocation services. |
| One platform supports employee management and payroll. | Employee management features may be limiting for large companies. |
| International teams are managed on the platform. | Â |
Papaya Global provides compliant and efficient solutions for managing employees in Saudi Arabia. The EOR is a SaaS platform that uses cloud technology to hire employees, facilitate onboarding, and process payroll. Employers can perform cross-border payments and system integration for global workforce management. The secure platform allows users to manage their employees in accordance with local labor laws.
Papaya Global has a simple-to-use platform in which HR functions, payroll, and compliance are managed and monitored. The emphasis on compliance in Saudi Arabia protects businesses from harsh penalties for violating the labor laws. New clients can take Papaya Global’s virtual tour to understand how to maximize the use of the EOR tools for expansion.
The EOR’s platform supports integration with VMS, ERP, and HRIS systems. The aim is to provide clients with the tools needed to effectively hire employees and expand their workforce. The inclusion of AI tools provides accuracy, reduces downtime, and maintains the highest levels of compliance with Saudi Arabia’s employment framework. The AI system updates local labor laws, preventing costly and damaging violations.
| Pros | Cons |
|---|---|
| AI tools support employee management by reducing inaccuracies and maintaining compliance. | Clients have reported delayed responses from the support team. |
| Work visa assistance. | Â |
A professional Saudi Arabia EOR aims to simplify employee hiring, payroll processing, and tax reporting. The service provider achieves this by acting as the legal employer of your workforce, assuming legal liability. The major benefit of partnering with an Employer of Record is that you can hire international employees or entire teams without the costs of registering a company. Employers and business owners have the freedom to test the Saudi Arabian market with minimal risks.Â
To successfully hire a workforce, you must understand Saudi Arabia’s labor laws. To help you in this process, we discuss several prominent labor lawsÂ
The most common types of employment contracts in Saudi Arabia are indefinite and fixed-term contracts. Short-term projects are secured with seasonal or part-time employment contracts. All contracts must be authenticated electronically on the Qiwa platform to be considered legally binding. Non-resident workers must receive a written agreement.Â
All employment contracts in the country must be in Arabic. An EOR can help you with translations and incorporating mandatory clauses governing the employment relationship. Details typically included in employment contracts include the employee’s personal details, salary, working hours, and annual leave.Â
The standard working hours are eight hours per day or 48 hours per week. During Ramadan, Muslim employees work for six hours per day or 36 hours a week. Between June 15th and September 15th, employees must not work in direct sunlight due to the high risk of heat exhaustion.Â
Employees who work overtime must be paid 1.5 times their standard wage. Overtime working hours cannot exceed 11 hours per day or 18 hours per week. Employees must receive a break for every five hours of consecutive work.Â
Effective January 2025, workers in the private sector are entitled to a monthly minimum wage of SAR 4000, which is equivalent to $1066.53.Â
Statutory employee benefits in Saudi Arabia consist of health insurance, sick leave, social security contributions, and paid annual leave. Employees also receive an end-of-year gratuity, which is paid upon the termination of an employment contract. Women are entitled to 12 weeks of fully paid maternity leave, with six weeks of leave taken after childbirth. Fathers receive three days of paid paternity leave taken after the birth of their child.Â
Supplementary or non-mandatory benefits can be used to appeal to skilled employees. In Saudi Arabia, non-statutory or fringe benefits range from housing allowances and private medical care to additional paid annual leave.Â
Personal income tax is not imposed on Saudi residents or non-Saudi citizens. They do, however, pay social insurance contributions. The General Organization for Social Insurance (GOSI) is responsible for overseeing social insurance, or social security. The contributions to GOSI differ between Saudi nationals and foreign employees. The contributions for residents consist of an employee’s standard salary plus their housing allowance. Employers contribute 9.75%, with 9% toward pension and 0.75% for unemployment insurance.Â
Expatriate employees do not contribute to social security; however, employers contribute 2% of a foreign employee’s salary and their housing allowance.Â
Employment contracts can be terminated by mutual agreement. In the case of fixed-term contracts, the agreement ends once the contract expires. Indefinite contracts require written notice. If the employer terminates the contract, the notice period is 60 days for monthly workers. Should the employee terminate the contract, the notice period is 30 days.Â
Severance pay in Saudi Arabia is called End of Service Benefits (EOSB). When the contract is terminated, employees are entitled to EOSB, which is calculated as half a month’s salary for the first five years of service and a full month’s salary for every year thereafter.Â
To effectively hire foreign workers in Saudi Arabia, employers must follow strict administrative and legal procedures. Employers must have a registered Saudi Arabian entity and comply with the Saudization (Nitaqat) program. To receive permission for hiring foreign workers, employers must obtain a block visa quota from the Ministry of Human Resources and Social Development (MHRSD).Â
Upon quota approval, the employer and employee must sign a valid employment contract. Only once the Ministry of Foreign Affairs issues a visa authorization number can employees apply for a work visa.
Undoubtedly, partnering with our six best Saudi Arabian EORs can help your business reach its goals more efficiently and effectively. Each provider incorporates the latest technology, such as AI, to reduce employee management costs. These tools help you keep updated on labor laws while compliantly onboarding employees and creating a dynamic global team.Â
Expansion in Saudi Arabia is simplified with the expertise of a trusted Employer of Record. Whether reducing payroll costs or improving your company’s HR administration, our recommended EOR services can guide you through the selection process.
Choosing the best Saudi Arabian EOR can be challenging. That’s why our team at RemotePad is here to refine your options with our list of the best six EORs in Saudi Arabia. Based on our industry expertise, we can align your business practices and goals with the right EOR. Whether you want to hire employees in the Middle East or outsource HR, speak to our dedicated RemotePad experts for international hiring and EOR solutions.
No, not all EORs in Saudi Arabia provide recruitment. Providers, such as Remote People, specialize in recruitment, which includes sourcing talented employees, onboarding them, and performing background checks. It is best to ask your EOR if they offer recruitment before entering into a binding agreement.
An affordable monthly price for EOR services in Saudi Arabia is $199 per month. This plan should include employee management solutions, such as payroll, tax reporting, onboarding, and HR administration. Before partnering with a particular service provider, look for hidden fees to avoid unwanted costs.
