Saudi Arabia New Labor Law 2025: Why This Law Matters for Expats
Saudi Arabia has always been one of the most attractive destinations for expats. From construction and oil to hospitality, IT, and healthcare, millions of foreigners call the Kingdom their workplace. But with 2025, a fresh chapter begins – Saudi Arabia New Labor Law 2025.
Thank you for reading this post, don’t forget to subscribe!This law brings important updates that will directly affect expats. If you are already working here, or planning to move, you must understand your rights, responsibilities, and how these changes shape the job market. Let’s go step by step, in simple language.
Understanding Saudi Arabia New Labor Law 2025
What is Saudi Arabia New Labor Law 2025?
The Saudi Arabia New Labor Law 2025 is a set of reforms designed to modernize work practices, improve transparency, and make the labor market fairer. It updates old rules that sometimes caused confusion or gave too much power to employers.
The main focus is:
- Empowering employees with more rights.
- Reducing conflicts between workers and employers.
- Supporting Saudization by giving locals more opportunities.
- Making Saudi Arabia more attractive for skilled foreign workers.
Key Rights for Expats Under Saudi Arabia New Labor Law 2025
Job Transfers Made Easier
Before 2025, if you wanted to change jobs, you needed your employer’s No-Objection Certificate (NOC). That often led to problems, as many employers refused to give it.
Now, under the new labor law 2025, you can:
- Switch jobs once your contract ends without NOC.
- Move to another employer after completing the agreed contract period.
- Use government-approved platforms like Qiwa to request a transfer.
👉 Example: If your 2-year contract ends in December 2025, you can join another company in January 2026 without needing your current employer’s approval.
Clear Employment Contracts
Contracts must now include:
- Job title & description
- Salary details
- Leave entitlements
- Working hours
- Termination policies
This gives both parties clarity and reduces disputes.
👉 Example: If your offer letter promises housing allowance but the final contract doesn’t mention it, you can challenge it legally.
Working Hours & Overtime Pay
The new law sets strict rules for working hours:
- Maximum 8 hours per day or 48 hours per week.
- During Ramadan, Muslim workers have 6 hours per day.
- Overtime must be paid at 150% of normal wage.
👉 Example: If you work 10 hours a day, 2 hours will be counted as overtime and paid extra.
Annual Leave & Holidays
- Employees are entitled to 21 days annual leave, which increases to 30 days after 5 years.
- National holidays, Eid holidays, and weekends are separate from annual leave.
- Employers cannot force employees to give up their leave without proper compensation.
End of Service Benefits (Gratuity)
Expats qualify for end-of-service gratuity after completing 2 years of work.
- First 5 years: Half-month salary for each year worked.
- After 5 years: One-month salary for each year worked.
👉 Example: If you worked 7 years with a final salary of SAR 8,000, your gratuity could be nearly SAR 46,000.
Saudization and Its Impact on Expats
What is Saudization?
Saudization (Nitaqat program) is the government’s plan to replace expat workers with Saudi nationals in many roles.
Which Jobs are Most Affected?
- Retail and sales jobs
- Administration roles
- HR positions
Which Jobs Still Welcome Expats?
- Healthcare (doctors, nurses, pharmacists)
- IT and engineering specialists
- Hospitality and tourism experts
- Construction and technical fields
Example: A cashier position may now be reserved for Saudi nationals, but a foreign chef in a five-star hotel is still in demand.
Penalties Under Saudi Arabia’s New Labor Law 2025
For Employers
- Fines for delaying salaries.
- Penalties for not giving contracts to workers.
- Strict action against companies that exploit expats.
For Employees
- Expats must follow their contracts.
- Leaving a job illegally can lead to bans on future work visas.
- Misuse of the new job transfer rules can result in penalties.
Practical Examples of How the New Law Helps Expats
- Changing Jobs Without NOC
- Before: An engineer couldn’t leave his company without NOC.
- Now: He can switch freely after contract completion.
- Overtime Pay Guaranteed
- Before: Many companies ignored overtime rules.
- Now: Law ensures 150% extra pay.
- Leave Benefits Protected
- Before: Some expats lost annual leave.
- Now: Law guarantees 21–30 days of paid leave.
Tips for Expats to Succeed Under the New Law
Keep Copies of Your Contract
Always save a digital and paper copy.
Track Your Iqama
Make sure your residency permit is valid, as it affects job transfers.
Learn Basic Saudi Labor Rights
Even knowing the basics (hours, leave, gratuity) can save you from unfair treatment.
Use Government Platforms
Websites like Qiwa, Absher, and MOL (Ministry of Labor) can be used to file complaints or check job status.
Frequently Asked Questions (FAQ)
Q1: Do expats still need an NOC to change jobs in 2025?
No. The Saudi Arabia new labor law 2025 removes this requirement once your contract ends.
Q2: How many hours can I work under the new law?
Maximum 8 hours daily or 48 hours weekly. Extra hours must be paid as overtime.
Q3: What are my leave benefits as an expat?
You get 21 days annually, increasing to 30 days after 5 years.
Q4: Am I entitled to gratuity?
Yes. After 2 years of service, you get end-of-service benefits.
Q5: Will Saudization affect my job?
It depends on your sector. Retail is more affected, while healthcare and hospitality still need expats.
A Brighter Future for Expats in Saudi Arabia
The Saudi Arabia New Labor Law 2025 is a game changer. For expats, it means more freedom, better protection, and clearer rights. Yes, Saudization is real, but skilled professionals still have many opportunities.
If you plan to work in the Kingdom, staying informed about your rights will help you avoid problems and make the most of your career journey in Saudi Arabia.