Payroll Process in Saudi Arabia

The payroll process involves calculating and disbursing employee salaries and benefits in a timely and accurate manner, while also ensuring compliance with relevant laws and regulations. It encompasses tasks such as tracking work hours, deducting taxes and other withholdings, and issuing payments to employees.

 

Managing payroll in Saudi Arabia can be complex and time-consuming. Let Carvy, your trusted payroll solutions provider, handle all the intricate details of your payroll process. With our expertise and dedication, we ensure smooth operations and compliance with all relevant regulations, allowing you to focus on your core business activities.

Payroll Services in Saudi Arabia

Saudi Arabia has become a more attractive choice for businesses due to a significant governmental restructuring that facilitates international trade. Managing payroll, benefits, and compensation has become standard for companies looking to expand in the Kingdom.

Here are some of the most notable Payroll Policies, Procedures, and Practices in Saudi Arabia (KSA)

  1. Social Security Contribution (GOSI):

    Navigating the complexities of GOSI contribution is simplified. We handle all calculations and ensure compliance with Saudi regulations for both Saudi nationals and expatriate employees.

  2. Wage Protection System (WPS):
    Stay compliant with Saudi labor laws. We streamline the entire WPS process, from registration to uploading confirmation files through the Ministry of Labor’s Mudad platform.
  3. Mudad Platform:
    Effortlessly manage your Mudad platform requirements. We ensure timely submission of WPS confirmation files and handle any responses or violations promptly to maintain compliance.

Statutory Leaves Management

From annual and sick leave to maternity and paternity leave, we handle all aspects of statutory leaves in accordance with Saudi labor regulations. Our expertise ensures precise tracking and administration, providing you peace of mind.

The table offers a comprehensive overview of the different statutory leaves available in Saudi Arabia, detailing their durations and specifics.

Type of Leave Duration Details
Annual Leave 21 days/year (first 5 years) 30 days/year (after 5th year) Accumulates annually, increasing with tenure
Sick Leave 120 days/year
  • First 30 days: Full Pay
  • Next 60 days: 75% Pay 
  • Remaining 30 days: Unpaid
Maternity Leave 10 weeks Provided to expecting female employees for childbirth
Hajj Leave 10 – 15 days Granted for pilgrimage to Mecca
Marriage Leave 5 days Offered to employees upon marriage
Paternity Leave 3 days Available to male employees following childbirth
Compassionate Leave 5 days Given for bereavement or urgent family matters
Iddah Leave
  • Muslim women: 4 months and 10 days.
  • Non-Muslim women: 15 days
Reserved for female employees following the death of a spouse

End of Service Gratuity

End-of-service gratuity is calculated accurately, adhering to the guidelines outlined by Saudi labor laws. All aspects of accrual and settlement are managed, guaranteeing prompt payment of entitlements to your employees.

Statutory Pay Components

Count on us to manage all statutory pay components in accordance with Saudi labor regulations. We guarantee precise payroll processing, meticulously handling all mandatory contributions and deductions to ensure compliance.

Working Hours and Overtime

Efficiently manage working hours and overtime with our assistance, ensuring adherence to Saudi labor laws. We accurately calculate overtime pay, ensuring your employees receive fair compensation for their extra hours worked.

End of Service Benefits

  • Handle unprocessed salary with precision and efficiency.
  • Ensure smooth arrangements for repatriation expenses.
  • Expertly manage any additional entitlements specified in your employees’ contracts.

Outsource your Payroll Services!

Carvy Consultants offer payroll services in the below locations;

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Partner with Carvy and experience hassle-free payroll management in Saudi Arabia. Focus on growing your business while we take care of your payroll needs with precision and professionalism. 

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