Factors That You Need To Look Into While Signing An Employment Contract In Saudi Arabia

When you sign an employment contract it means that you in fact get committed with your employer for a few months or years. Therefore it is a vital choice of your life as your services will be sold to your employer. While taking this important decision of your life, you need to look into a few aspects. Given below are some of the important features which you need to look into while signing an employment contract in Saudi Arabia.

Know the average salary

Before signing the employment contract it is important that you need to be aware of the average salary. You can enquire through your known friends and relatives who are already working in Saudi Arabia and know the average salary by profession.

Cash benefits

This is apparently the fundamental aspect and a minimum 50 % of your judgment relies on it. You must evaluate your salary with salary which you are receiving or the last drawn salary in your home country and other relative advantages. You should convert the salary that is offerted in Saudi Arabia from Saudi riyal into your home nation currency ( for eg, for Indians the currency must be converted into Indian rupees) and checked. Based on the outcome of your research and based on your requirements you need to take your decision. It is vital to read the contract several times before signing the employment contract.


Usually in the Kingdom of Saudi Arabia, When a job is offered, the housing or the housing allowance will be also be provided along with the job offer. As per the Saudi Labor Law your Employer or Sponsor must offer you any of the housing or house allowance. If it is not mentioned in the contract you need to ask for it and get clarified.

If the housing offer is mentioned in the contract, analytically verify it. It must approximately 20% or more of your fundamental salary. If it is lower than 20% then you must not accept it, and you need to talk, discuss this with your sponsor or employer. Normally, housing allowance’s average market rate is about 25% of your fundamental salary.

If employer is offering you physical housing as an alternative to the housing allowance, then you need to ensure wheter the housing is comfortable for you. Yet again, we are emphasizing, you need ascertain that the housing provided to you is worth a minium of 20% of your fundamental salary. You can verify this by asking the following questions with your sponsor or employer.

  • The number of rooms in the accommodation provided to you.
  • How far is the housing or accommodation from your workplace.
  • If you are not offered an independent house, but only a room then you need to again check whether the room provided is independent or shared.
  • If it is a shared accomotaon, ask how many persons will be sharing the room.
Transportation allowance

As per the Saudi Labor Law, the transportation allowance must be offered to you. You have the right to request for it from your sponsor or employer. If the transport allowance is mentioned in the contract, then it must be about 8% to 10% of your fundamental salary. If you are provided with a car, then it must be as per your designation.


As per the Saudi Labor Law, you are permitted to have a minimum 21 days paid yearly vacation. If the mentioned vacation is below 21 days, you can request your sponsor or employer to increase the vacation to 21 days. Likewise when you finish five consecutive years in an organization, you are eligible to a minimum of 30 days of paid yearly vacation.

Family status

This is another factor which you need to look into while signing the contract. If you are not offered a family status, you will not be permitted to bring your family to the kingdom of Saudi Arabia, regardless of your designation.


Saudi Labor law talks about about the vacation, however not about the airtickets. Hence you need to ensure that how many tickets will be offered to your organization or employer to your native country. A few organization will offer two return tickets per year while a few provide one return ticket in three years. Whichever may be the case, it is vital to look into this important aspect while signing a contract. Likewise you need to ensure whether the air tickets will be offered only to you or also to your family.

Period of Probation

As per the Saudi Labor Law, the period of probation can be utmost three months and not beyond that. During this period both parties ( you and the employer) are free to get relieved from each other without offering any notice. Please not if your sponsor or employer request to extend the probation period, it is considered as unlawful or against the law.

Medical amenities

Usually, the employees are covered with the organization’s medical insurance. But it is not labur law’s legal requirement. If you are provided with a family status, you must look into whether medical amenities or facilities is offered to your family members.

Education to kids

The employer or organization offers education to two or three children of an employee who is higher than a specific grade. But this entirely relies on the employer’s discretion.

Working hours

Eventhough it may not be specified in the contract, however usually in Saudi Arabia, in a week, 48 working hours are permitted. Suppose if your employer request to work for some more time, then you are eligible to an overtime of 1.5 times of your usual time wages.

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