Understanding Saudization and payroll system a guide for expats business owners
Understanding Saudization and payroll system a guide for expats business owners . For expat business owners in Saudi Arabia, understanding Saudization and the local payroll system is crucial for staying compliant with labor laws. Saudization refers to the Saudi government's initiative to increase employment among Saudi nationals by reducing the reliance on foreign workers. This policy requires businesses to hire a specific percentage of Saudi nationals, depending on the sector and company size. The payroll system in Saudi Arabia also has specific rules that business owners must follow. Salaries must be paid on time, and all workers—whether Saudi or expat—must receive a minimum wage as set by the government. Additionally, businesses must contribute to social insurance schemes for their employees, such as the General Organization for Social Insurance (GOSI), which provides benefits like pensions and healthcare. As an expat business owner, it’s essential to track the number of Sa...