Salary & Compensation in Saudi Arabia
Salary and compensation are legally protected under Saudi Labour Law. Employees have clear financial rights related to wages, allowances, overtime, deductions, and timely payments.
This guide covers:
- Salary structure
- Allowances
- Overtime rules
- Deductions
- Delayed payments
- Final settlement
- Salary disputes
- Legal protection
- Expat salary rules
1. Salary Structure
- Basic salary
- Housing allowance
- Transport allowance
- Other benefits
Salary structure must be clearly defined in the employment contract.
2. Allowances
- Housing allowance
- Transportation allowance
- Education allowance
- Food allowance
- Medical coverage
3. Overtime Rules
- Overtime pay = 150% of hourly wage
- Overtime must be documented
- Friday overtime paid higher
- Holiday overtime compensation
4. Salary Deductions
- Legal deductions only
- No arbitrary deductions
- Written consent required
- Penalty limits apply
5. Delayed Salary Payments
Delayed salary payments violate Saudi Labour Law.
- Employer penalties apply
- Employee compensation rights
- Complaint filing rights
6. Final Settlement
- Unpaid salary
- Unused leave compensation
- EOSB
- Allowances
- Bonuses
7. Salary Disputes
- Salary delays
- Incorrect payments
- Unpaid overtime
- Illegal deductions
Disputes can be filed through HRSD, labour courts, and Najiz platform.
8. Legal Protection
Salary rights are legally protected.
- Wage Protection System (WPS)
- HRSD enforcement
- Labour court protection
9. Expat Salary Rules
- Salary linked to contract
- Iqama-linked payments
- Transfer impact
- Exit visa implications