Guide to Saudi Hiring Overheads: Work Permit (9,600–9,700 SAR), Expat Levy, GOSI & End-of-Service (EOSB)

When a Saudi company plans to add a person to its team, the budget conversation usually starts with base salary. In reality, base salary is only the first line of the true employer cost. Once mandatory statutory fees, allowances, and accruals are added, the fully loaded monthly cost of an in-house employee is significantly higher than the headline salary. This guide breaks down every cost line—and shows what changes when you use a managed B2B service contract instead.

1. Work Permit Fee (SAR 9,700/yr) & Expat Levy (~SAR 800/month)

For non-Saudi employees in private-sector establishments above the small-establishment exemption threshold, the annual Qiwa work permit (رخصة العمل) combines two statutory charges:

• Expat Levy (المقابل المالي للعمالة الوافدة): SAR 800 per month (SAR 9,600 per year) where non-Saudi staff exceed Saudi staff, or SAR 700 per month (SAR 8,400 per year) where Saudi staff are at least equal to non-Saudi staff.
• Base Work Permit Fee: SAR 100 per year via Qiwa.
• Iqama Issuance / Renewal (تجديد الإقامة): Typically SAR 650 per year via Absher Business / Muqeem, plus exit/re-entry visa fees.

Combined, the work permit and expat levy alone add SAR 9,700 per year (~SAR 808 per month)—or roughly SAR 862 per month once Iqama renewal is included—before a single riyal of salary is paid.

2. Social Insurance: Non-Saudi GOSI Contribution (2% Occupational Hazards)

Under General Organization for Social Insurance (GOSI) rules, employers pay a mandatory 2% occupational hazards contribution (فرع الأخطار المهنية) for non-Saudi employees, calculated on the sum of basic salary plus housing allowance. For Saudi nationals, statutory employer and employee rates apply across annuities, SANED (unemployment insurance), and occupational hazards.

3. End-of-Service Benefits (EOSB / مكافأة نهاية الخدمة)

Under Article 84 of the Saudi Labor Law, every in-house employee accrues statutory End-of-Service Benefits (EOSB) based on their final gross wage:

• First 5 years of service: Half a month's wage for each year of service (~4.17% monthly accrual on gross wage).
• Each subsequent year: One full month's wage for each year of service (~8.33% monthly accrual on gross wage).

4. Housing, Transport, Medical Insurance, Flights & Paid Leave

• Housing (Accommodation or Allowance): Typically 25% of base salary (or 3 months' salary per year), or licensed shared housing where required.
• Transport: Company vehicle and fuel or a monthly transport allowance (commonly 10% of base salary).
• Mandatory Medical Insurance: CCHI-compliant health insurance for the employee and eligible dependents.
• Annual Flight Tickets & Paid Leave: Home-country return tickets plus 21 to 30 days of paid annual leave under the Saudi Labor Law.
• Workspace, Equipment & Recruitment: Laptop, software licenses, office desk, visa recruitment agency fees, and onboarding time.

What changes under a managed B2B service contract with The Kabeer Co

With The Kabeer Co, you contract for a defined service and its outputs under an international B2B service agreement backed by contractual SLAs with service credits. Because the service is delivered remotely under a B2B agreement, your company does not carry visa, Iqama, work permit, expat levy, GOSI, EOSB, housing, transport, leave, flights, insurance, or equipment costs.

You receive a single B2B service invoice that is fully expensable as an operating expense, alongside a monthly QC-audited report of every task completed in Connect.

Calculate your exact comparison

Enter your own salary and overhead figures in our interactive Saudi Employee Cost Calculator to see the side-by-side monthly and annual savings for 1 or more services, or explore our Saudi Employment Glossary.

This article is general information, not legal or financial advice. Statutory rates, thresholds, and fees change, so confirm current requirements with MHRSD, Qiwa, and GOSI or a qualified adviser before making decisions.