Payroll Services Saudi Arabia
WPS-compliant payroll processing for Saudi businesses — GOSI, EOSB accruals, Saudization tracking, and full Saudi Labour Law compliance.
Saudi Arabia's payroll landscape is one of the most compliance-intensive in the GCC. Every employer must process payroll through the Wage Protection System (WPS), contribute to GOSI (General Organization for Social Insurance) for both Saudi and expatriate employees, maintain EOSB (End of Service Benefits) accruals, and comply with detailed provisions of the Saudi Labour Law on leave, overtime, final settlements, and working hours.
Non-compliance carries serious consequences — WPS violations can result in frozen government services, visa and Iqama blocks, and suspension of commercial registration renewal. GOSI underpayments attract penalties of 2% per month plus back-contributions. Intelli Solutions provides a fully managed, WPS-compliant payroll service that eliminates these risks and gives your employees confidence that their salaries, benefits, and entitlements are calculated accurately every month.
Saudi Payroll Compliance Requirements
Wage Protection System (WPS)
Salary payments to all employees must be made through SADAD/direct transfer and reported through the Ministry of Human Resources' WPS portal. Violations result in immediate suspension of government services.
GOSI Contributions
Saudi employees: 22.5% of salary (9% employee, 13.5% employer). Expatriate employees: 2% employer-only contribution. Monthly GOSI submission required by the 15th of each month.
End of Service Benefits (EOSB)
Saudi Labour Law requires EOSB accruals for all employees. New EOSB Investment Scheme (Tasaheel) applies to private sector employees from June 2024 — monthly employer contributions to investment accounts.
Annual Leave Accruals
21 days annual leave (rising to 30 days after 5 years) must be accrued monthly. Leave not taken must be compensated upon termination. Accurate leave ledgers are essential for final settlement calculations.
Saudization (Nitaqat) Tracking
Monthly tracking of Saudi employee headcount against Nitaqat requirements — ensuring the business stays in the Green or Platinum band and government services remain accessible.
Payslips & Employee Records
Bilingual (Arabic/English) payslips with full earnings breakdown, deductions, and YTD figures. Employee payroll records maintained in the format required by Saudi Labour Law.
End-of-Service Benefit Calculation — 2024 Update
Saudi Arabia's EOSB rules underwent a significant change in 2024 with the introduction of the Tasaheel (New End-of-Service Programme):
Traditional EOSB (Pre-June 2024 Employees)
- Less than 2 years: No EOSB entitlement
- 2–5 years: 1/3 monthly salary per year
- 5–10 years: 2/3 monthly salary per year
- 10+ years: 1 full monthly salary per year
- Resignation: 1/3 of the calculated amount (under 5 years)
New EOSB Investment Scheme (Tasaheel)
- Monthly employer contribution to individual investment accounts
- Contribution rate: phased in over 3 years (starting 4% in Year 1)
- Managed by HRDF-approved investment fund managers
- Employee owns accrued investment balance upon departure
- Requires monthly WPS-linked transfers to Tasaheel accounts
The interaction between the old and new EOSB schemes — particularly for employees who were on the payroll before June 2024 — requires careful calculation. Our payroll team manages both schemes simultaneously for transitional employee populations.
Payroll Services Saudi Arabia — Key Facts
Frequently Asked Questions
Other Accounting & Financial Services
Need WPS-Compliant Payroll Processing?
Error-free payroll, on-time GOSI filings, and full Saudi Labour Law compliance. Free payroll assessment for new clients.