Saudi employee cost calculator: true cost of an in-house employee vs. a managed B2B service contract

How to read the result

• The left column is the full monthly cost of an in-house employee based on your figures. The right column is the illustrative monthly fee for a managed B2B service contract.
• The number of managed services multiplies the totals, so you can model several services at once.
• For yearly statutory costs such as work permits, Iqama renewals, and flight tickets, divide the annual figure by 12 and enter the monthly equivalent.

What the cost lines mean

• Iqama & work permit (expat levy): Monthly equivalent of residency permit issuance/renewal, Qiwa work permit, and expat levy fees for foreign employees.
• Paid annual leave: The monthly cost of paid annual leave days when the employee is paid but away from work.
• Yearly flight tickets: Monthly equivalent of annual home-country return tickets provided under the employment contract.

Mandatory Saudi employer overheads beyond the base rows

• Work Permit Fee (SAR 9,700/yr) & Expat Levy (~SAR 800/month): For non-Saudi staff in establishments above the exemption threshold, the Qiwa work permit combines SAR 100/year with the SAR 800/month expat levy (SAR 9,600/year) plus SAR 650/year Iqama renewal (~SAR 862/month per expat employee).
• Non-Saudi GOSI Contribution (2% Occupational Hazards): Employers pay 2% of (basic salary + housing allowance) to GOSI for non-Saudi employees.
• End-of-Service Benefits (EOSB / مكافأة نهاية الخدمة): Under Saudi Labor Law Article 84, half a month's wage per year for the first 5 years and one full month's wage per year thereafter (~4.17% to 8.33% monthly accrual on gross salary).
• Workstation, software licenses, recruitment fees, and internal supervision time.

Because The Kabeer Co delivers services 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.

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Common questions on Saudi employer costs

What is the true cost of an in-house employee vs. a managed B2B service contract in Saudi Arabia?

An in-house hire carries mandatory statutory and operational overheads on top of base salary: work permit and expat levy fees, Iqama issuance/renewal, GOSI contributions, End-of-Service Benefits (EOSB), housing, transport, medical insurance, annual leave, and flight tickets. With a managed B2B service contract from The Kabeer Co, you pay a single B2B service invoice that is fully expensable as an operating cost, and 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.

How much are the work permit fee (9,600–9,700 SAR) and expat levy (~800 SAR/month) in Saudi Arabia?

For non-Saudi employees in establishments exceeding the Saudi-to-expat threshold, the annual work permit fee (رسوم رخصة العمل) via Qiwa combines the SAR 100 base permit fee with the expat levy (المقابل المالي للعمالة الوافدة) of SAR 800 per month (SAR 9,600 per year), totaling SAR 9,700 per year (~SAR 808 per month) before adding the SAR 650/year Iqama renewal fee via Absher/Muqeem. Enter your establishment's actual monthly equivalent in the Iqama & work permit box above.

How is GOSI calculated for non-Saudi employees (2% occupational hazards)?

Under General Organization for Social Insurance (GOSI) rules, employers pay a 2% occupational hazards contribution (فرع الأخطار المهنية) on basic salary plus housing allowance for non-Saudi employees, while Saudi nationals are covered under annuities, SANED, and occupational hazards at higher statutory rates. Always verify current contribution rates on gosi.gov.sa.

How are End-of-Service Benefits (EOSB) calculated under the Saudi Labor Law?

Under Article 84 of the Saudi Labor Law, End-of-Service Benefits (مكافأة نهاية الخدمة) accrue at half a month's total wage for each of the first five years of service and one full month's wage for each subsequent year, calculated on the employee's last gross wage (roughly 4.17% of monthly gross salary in years 1–5 and 8.33% thereafter).

Are the default figures accurate, and how is the estimated monthly service fee calculated?

The defaults are illustrative averages for a mid-level employee. Values shown are auto-estimated for illustration based on the local base salary you enter, and may vary based on the service scope and conditions provided by the client. You can also enter a custom monthly fee if you already have a quote.

Can I embed this calculator on my own website?

Yes. Copy the embed code on this page. It includes a link back to this page.

See also how our pricing works and the Saudi workforce & compliance glossary.