Employment Contract in Saudi Arabia

It would be best if you researched various things before you start working in a new environment. If you want to seek employment in Saudi Arabia, you need to find out the cost of living and understand different laws that are relevant to work. An employment contract in Saudi Arabia can be quite confusing if you are not sure about what you should sign. This simple guide will be helpful to you when signing such contracts.

What is a basic salary?

This may sound easy, but it could be challenging. Basic salary usually refers to what you get paid on a monthly basis as wages. Employers in Saudi Arabia have different offers of basic salary. A salary package in Saudi Arabia as outlined by the contract could have the following provisions:
• 1-month vacation
• 1 guaranteed bonus per year
• Basic pay for 12 months
• Accommodation allowance for 3 months only
• Transportation allowance for 1 month
Suppose you have been offered $2,000 as basic salary in an employment contract in Saudi Arabia. To count your total annual earnings, you multiply the high 18 months with $2,000 to get $36,000.

Wages and Salaries

Salaries are paid monthly while daily wages are paid weekly. Currently, the minimum wage does not apply in Saudi Arabia. Overtime refers to the hours your work more than forty-eight. Overtime is not paid to salaried people. Overtime is only for hourly workers.

Working Hours

An employment contract in Saudi Arabia should give details of vacation time, days per week, and daily working hours. Usually, they are 6 days per week; working daily for 8 hours. There are 10 public holidays yearly.

Probation period

The probationary period should be less than 90 days. The contract can be terminated or confirmed at the end of this period. If you resign, you should receive your payment within 7 days.

Exit Visa and Re-entry

For a non-Saudi employee, your employer should pay for residence and work permit in addition to exit visas and re-entry fees. Always check in your contract to confirm that all these fees are paid in full.

Despite how good your working relationship is with your employer, in case of anything, the employment contract will be your savior. That’s why you should be keen when signing it.

To know more about Employment Contracts in Saudi Arabia,
Visit Nasreen Alissa Law Firm