Saudi labour law at a glance
The Saudi Labour Law in practice: 48-hour weeks, 21 days of annual leave rising to 30, 120 days of sick leave, and end-of-service pay under Articles 84–85.
Governing law
Saudi Labour Law (Royal Decree M/51), as amended
Saudi Arabia regulates private-sector employment through the Labour Law issued by Royal Decree M/51, amended substantially since — most recently in the package of changes that took effect in 2025. It is administered by the Ministry of Human Resources and Social Development, and enforced in practice through Qiwa, Mudad and the wage protection system rather than through inspection alone.
That enforcement layer is what makes the Saudi figures unusual to work with: contracts, hours and wage payments are filed and matched against government platforms every month, so a rule applied loosely inside the company tends to surface as a compliance flag rather than as a dispute years later.
The two entitlements that step with tenure are annual leave, which rises from 21 to 30 days after five years, and end-of-service pay, which doubles its rate at the same point. Both are below.
At a glance
| Governing law | Labour Law (Royal Decree M/51), as amended |
|---|---|
| Standard hours | 8 hours a day, 48 a week |
| Ramadan hours | 6 hours a day, 36 a week for Muslim employees |
| Weekly rest | At least 24 consecutive hours, normally Friday |
| Annual leave | 21 days a year, 30 after five years (Art. 109) |
| Sick leave | 120 days a year: 30 full, 60 at three-quarters, 30 unpaid (Art. 117) |
| Maternity leave | 12 weeks at full pay |
| Probation | 90 days, extendable to 180 by written agreement (Art. 53) |
| Notice period | 60 days for monthly-paid indefinite contracts, 30 otherwise (Art. 75) |
| End of service | Half a month a year for 5 years, then a month a year (Art. 84) |
| Overtime | +50% of the hourly wage (Art. 107) |
| Wage protection | Monthly WPS filing through Mudad |
These rules, enforced automatically
Set the working week, leave entitlements and rest days once. Dawam applies them to every timesheet, leave balance and payslip after that — no manual counting, no rule remembered wrong.
The working week
Eight hours a day and 48 a week, cut to six hours a day and 36 a week for Muslim employees during Ramadan. Hours may be arranged over the week so long as no day exceeds ten, and every employee is owed a weekly rest of at least 24 consecutive hours — Friday by default, though another day may be substituted for some roles. Time spent on a rest day is overtime in full, not just the excess.
Annual leave
Article 109 gives 21 days of paid annual leave a year, rising to 30 days once an employee completes five continuous years with the same employer. The step is easy to miss in a spreadsheet and expensive to miss in practice — it is a 43% increase in entitlement that arrives on a single anniversary. Leave is taken in the year it falls due, and days may only be carried or cashed out with the employee’s written agreement.
Sick leave and other absences
Article 117 gives an employee 120 days of sick leave in a year, paid in three bands: the first 30 days at full wage, the next 60 at three-quarters, and the final 30 unpaid. The year runs from the first sick day, not from January. Maternity leave is twelve weeks at full pay, and an employer may not terminate a woman during it.
Probation, notice and end of service
Probation is 90 days, extendable to 180 where both sides agree in writing, and the period must be stated in the contract to exist at all. Notice on an indefinite contract is 60 days where the employee is paid monthly and 30 days otherwise. End-of-service pay is half a month of wage for each of the first five years and a full month for each year after — with no statutory ceiling. Article 85 reduces the award on resignation: nothing under two years, a third from two to five, two-thirds from five to ten, and the full amount from ten years on.
Overtime, wages and records
Overtime is paid at 150% of the hourly wage — a flat premium, without the separate rest-day and holiday tiers used elsewhere in the Gulf. Wages must be paid at least monthly and filed through the wage protection system; a mismatch between the filed wage and the actual payment is one of the most common findings against employers. Attendance records must be kept and produced on request, which makes an auditable timesheet a compliance asset rather than an administrative one.
Frequently asked
How many annual leave days are employees entitled to in Saudi Arabia?
Twenty-one days a year under Article 109, rising to 30 days once the employee completes five continuous years of service with the same employer.
How is end-of-service pay calculated in Saudi Arabia?
Half a month of wage for each of the first five years of service and one full month for each year after, with no statutory cap. Under Article 85 an employee who resigns receives nothing below two years, one-third from two to five years, two-thirds from five to ten, and the full award from ten years on.
What is the maximum probation period in Saudi Arabia?
Ninety days, extendable to a total of 180 days if both parties agree in writing. Probation only applies if it is stated in the contract, and the period excludes Eid holidays and sick leave.
How much notice is required in Saudi Arabia?
Sixty days for an employee on an indefinite contract paid monthly, and 30 days for everyone else, under Article 75. A fixed-term contract simply ends on its date unless it is renewed.
How many sick days does Saudi labour law allow?
One hundred and twenty days in a single year under Article 117: the first 30 at full wage, the next 60 at three-quarters of wage, and the last 30 unpaid. The year is counted from the first day of sickness.
What is the overtime rate in Saudi Arabia?
One and a half times the hourly wage for every additional hour, under Article 107. There is no separate higher rate for rest days or public holidays — the whole of a rest day worked is overtime at the same 150%.
This summary is written for HR and business owners, not as legal advice. Statutes are amended, ministerial decisions change the detail, and contracts and collective agreements routinely improve on the statutory minimum. Check the current text of the law, or your counsel, before acting on a figure here.
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