Understanding Saudi Labor Law: Key Updates for 2025
Saudi Labor Law 2025: What Changed and What HR Teams Need to Do
Saudi Arabia's labor law saw major amendments in 2025 as part of the Vision 2030 overhaul. Here is what changed, what stayed the same, and where employers need to act.
Employment Contracts
The Ministry of Human Resources and Social Development (MHRSD) tightened contract requirements:
- Electronic contracts through Qiwa are now mandatory for all new hires.
- Contracts must spell out work hours, overtime policies, and remote work arrangements.
- Probation period rules were clarified with stronger protections for employees during the trial period.
Wage Protection System (WPS)
The WPS got stricter compliance requirements:
- All salary payments must go through approved banking channels.
- Payment deadlines are tighter to prevent late compensation.
- Employees can now flag delayed payments directly through Qiwa's reporting tools.
Employee Rights
Annual Leave
Minimum 21 days of paid annual leave. After five years of continuous service, that increases to 30 days. The 2025 updates clarify how leave accrual works for part-time and remote workers.
End-of-Service Benefits
The calculation formula remains tied to the employee's last salary:
- Half month's salary for each of the first five years
- Full month's salary for each year after that
- Pro-rated for partial years
Maternity Leave
Female employees get 70 days of maternity leave at full pay, distributed before and after delivery at the employee's discretion.
What Employers Should Do Now
- Review and update all employment contracts to meet the electronic filing requirements on Qiwa.
- Verify WPS compliance across every employee.
- Align internal HR policies with the latest MHRSD guidelines.
- Brief HR staff on the new regulations and reporting workflows.
How Saudi HR Can Help
Our AI assistant stays current with every Saudi labor law update. Ask a question about employment regulations and get guidance based on the latest legal framework.
For informational purposes only, not legal advice. Consult a qualified labor law professional for specific legal questions.