Hi, my name is Edgar. I am working in an EPC company as an HR located in Al Khobar, Saudi Arabia. I just want to know, what is the basic salary for Saudi employees like engineers? Also, what about unskilled Saudis? Unfortunately, I don't have enough information on this. Thank you, guys. Looking forward to all your answers.
From Saudi Arabia, Riyadh
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1From Saudi Arabia, Riyadh
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Hi,
You have to buy a copy of the compensation/market survey done in KSA to be able to get the information you want. I can help you obtain a copy of the KSA survey conducted by a reputable institution in the area. Additionally, I can assist you in benchmarking all your company's position titles with the KSA market median rates.
Please contact me if you need professional help and have a budget for this.
Best regards,
Ed Llarena, Jr.
Managing Partner
Emilla International Consulting Services
From Philippines, Parañaque
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You have to buy a copy of the compensation/market survey done in KSA to be able to get the information you want. I can help you obtain a copy of the KSA survey conducted by a reputable institution in the area. Additionally, I can assist you in benchmarking all your company's position titles with the KSA market median rates.
Please contact me if you need professional help and have a budget for this.
Best regards,
Ed Llarena, Jr.
Managing Partner
Emilla International Consulting Services
From Philippines, Parañaque
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Hi Edgar,
As per the Saudi Labor Law, the minimum wage is SAR 3000. The amount can be considered as Gross Salary and should be divided into at least 3 heads, namely Basic (60%), Housing (20%), and Transportation (20%). You can also add some other category as per your company's policy and requirements. It's important to note that the proportion of different categories varies from company to company.
The aforementioned amount represents the minimum wage applicable for "Unskilled Saudi Employees." For skilled workers such as Engineers or other professionals, the minimum wage law should be adhered to. Salaries and additional benefits depend on negotiation and the company's policies and requirements. However, it should always exceed the minimum wage of SAR 3000.
Thanks and Regards,
Prabhat Kumar
Sr. Executive - HR & Administration
Jaihind Projects Limited
Kingdom of Saudi Arabia
E-mail Id: prabhat@jpl.co.in / mishra.prabhat111@gmail.com
Mobile No.: 00966555058015 / 00966564970234
From India, Mumbai
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As per the Saudi Labor Law, the minimum wage is SAR 3000. The amount can be considered as Gross Salary and should be divided into at least 3 heads, namely Basic (60%), Housing (20%), and Transportation (20%). You can also add some other category as per your company's policy and requirements. It's important to note that the proportion of different categories varies from company to company.
The aforementioned amount represents the minimum wage applicable for "Unskilled Saudi Employees." For skilled workers such as Engineers or other professionals, the minimum wage law should be adhered to. Salaries and additional benefits depend on negotiation and the company's policies and requirements. However, it should always exceed the minimum wage of SAR 3000.
Thanks and Regards,
Prabhat Kumar
Sr. Executive - HR & Administration
Jaihind Projects Limited
Kingdom of Saudi Arabia
E-mail Id: prabhat@jpl.co.in / mishra.prabhat111@gmail.com
Mobile No.: 00966555058015 / 00966564970234
From India, Mumbai
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Hi Prabhat,
Thank you very much for the information!
Can we decrease the housing and transportation allowance for the Saudi? Because I made some research, some of the companies, their transportation is 10% and housing is 25%. In your given numbers for housing and transportation, are these figures based on the company policy or on the law?
Thank you.
From Saudi Arabia, Riyadh
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Thank you very much for the information!
Can we decrease the housing and transportation allowance for the Saudi? Because I made some research, some of the companies, their transportation is 10% and housing is 25%. In your given numbers for housing and transportation, are these figures based on the company policy or on the law?
Thank you.
From Saudi Arabia, Riyadh
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Hi Edgar,
You can go ahead with the desired proportion. The combination (60% + 20% + 20%) is standard, but it varies from company to company. Specifically, Saudi nationalities emphasize getting a higher proportion in Basic & Housing. The reason behind this is that they will benefit in GOSI amount (as GOSI for Saudis is 9% of Basic + Housing from the employee and 11% of Basic + Housing from the employer side).
Thanks & Regards,
Prabhat Kumar
Sr. Executive - HR & Administration
Jaihind Projects Limited
Kingdom of Saudi Arabia
E-mail Id: /
Mobile No. - 00966555058015 / 00966564970234
From India, Mumbai
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You can go ahead with the desired proportion. The combination (60% + 20% + 20%) is standard, but it varies from company to company. Specifically, Saudi nationalities emphasize getting a higher proportion in Basic & Housing. The reason behind this is that they will benefit in GOSI amount (as GOSI for Saudis is 9% of Basic + Housing from the employee and 11% of Basic + Housing from the employer side).
Thanks & Regards,
Prabhat Kumar
Sr. Executive - HR & Administration
Jaihind Projects Limited
Kingdom of Saudi Arabia
E-mail Id: /
Mobile No. - 00966555058015 / 00966564970234
From India, Mumbai
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Hi Edgar,
The discussion you have started is very interesting. Salary for any employees in Saudi Arabia or expatriates is based on the company's internal salary brackets and capacity to pay, and mostly it is governed by Saudi Labor Law to ensure compliance. Please note that contracting companies significantly differ from the direct staff of companies, leading to variations in salary breakdowns, which are generally more favorable for direct staff.
On average, according to my analysis:
- Unskilled Categories (5th pass to High School with a few technical/computer courses) - Basic SR 1500-4500
- Skilled Categories (Experience of 3 years and above with at least a higher Diploma or Graduation) - Basic SR 6000-25000
Additionally, I would suggest you review the salary surveys on websites like [www.gulftalent.com](http://www.gulftalent.com), which provide valuable insights.
Ukmitra
From Saudi Arabia, Riyadh
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The discussion you have started is very interesting. Salary for any employees in Saudi Arabia or expatriates is based on the company's internal salary brackets and capacity to pay, and mostly it is governed by Saudi Labor Law to ensure compliance. Please note that contracting companies significantly differ from the direct staff of companies, leading to variations in salary breakdowns, which are generally more favorable for direct staff.
On average, according to my analysis:
- Unskilled Categories (5th pass to High School with a few technical/computer courses) - Basic SR 1500-4500
- Skilled Categories (Experience of 3 years and above with at least a higher Diploma or Graduation) - Basic SR 6000-25000
Additionally, I would suggest you review the salary surveys on websites like [www.gulftalent.com](http://www.gulftalent.com), which provide valuable insights.
Ukmitra
From Saudi Arabia, Riyadh
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Hi Ukmitra,
Are those figures defined by company policy or labor law? How about in skilled roles; if a Saudi employee doesn't have any experience (fresh graduate), is the figure applicable to them?
Thank you
From Saudi Arabia, Riyadh
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Are those figures defined by company policy or labor law? How about in skilled roles; if a Saudi employee doesn't have any experience (fresh graduate), is the figure applicable to them?
Thank you
From Saudi Arabia, Riyadh
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1. Above information is in line with current market trends based on my own research. It aligns with company policy rather than labor law, as labor law does not stipulate specific salaries but rather outlines policies. Salary determination is at the discretion of the company, following the "terms of contract."
2. As previously mentioned, fresh graduates are compensated according to the respective companies' capacities. There is no legislation specifying a base salary, but periodically, the Saudi Ministry establishes the base salary for government staff. In my experience, fresh graduates with an Engineering Degree typically request and receive salaries ranging from SR3500 to SR6000 or higher in major contracting companies and EPC companies. From my observations, no Engineer accepts a salary below this range. Additionally, it is worth noting that a Security guard with 4 years of experience earns SR3500 or higher. Currently, Saudis are in high demand, leading to increased salary offers due to mandatory Saudization and the necessity of retaining talent. A rise in attrition rates among Saudi staff across various sectors has been observed.
Ukmitra
From Saudi Arabia, Riyadh
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2. As previously mentioned, fresh graduates are compensated according to the respective companies' capacities. There is no legislation specifying a base salary, but periodically, the Saudi Ministry establishes the base salary for government staff. In my experience, fresh graduates with an Engineering Degree typically request and receive salaries ranging from SR3500 to SR6000 or higher in major contracting companies and EPC companies. From my observations, no Engineer accepts a salary below this range. Additionally, it is worth noting that a Security guard with 4 years of experience earns SR3500 or higher. Currently, Saudis are in high demand, leading to increased salary offers due to mandatory Saudization and the necessity of retaining talent. A rise in attrition rates among Saudi staff across various sectors has been observed.
Ukmitra
From Saudi Arabia, Riyadh
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Hi Umitra,
That was a good source from you. It really helps since you have excellent information. Now I can start making a salary grade for Saudi engineers. If it is okay, do you have some sample salary grades for Saudi only?
Thank you very much!
From Saudi Arabia, Riyadh
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That was a good source from you. It really helps since you have excellent information. Now I can start making a salary grade for Saudi engineers. If it is okay, do you have some sample salary grades for Saudi only?
Thank you very much!
From Saudi Arabia, Riyadh
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Hi!
I have access to very good compensation and benefits data in KSA and UAE as I have conducted Job Evaluation (JE) and Compensation & Benefits Benchmarking there. I have also prepared a Benefits Menu for both countries that can serve as a useful reference for organizations looking to develop their own compensation and benefits structure. However, we sell this data.
I have a copy of the KSA Labour Law and have studied the various corporate policies of major companies there. My observation is that the Housing Allowance provided is equivalent to three (3) months' salary, distributed monthly (e.g., if the Monthly Basic Salary (MBS) is SR 4,000, then the monthly Housing Allowance is 12,000/12 or SR 1,000), approximately 25% of the basic monthly salary. Some companies opt to offer free accommodation/housing to their employees, especially those with lower MBS, as rental costs in KSA are high. Consequently, if the company provides free housing, some may not offer any Housing Allowance at all. Even Western Expats with substantial MBS may no longer receive housing allowances if they are provided with free housing and security benefits. However, Saudis receive the 25% Housing Allowance irrespective of their MBS.
Transportation Allowance (TA) is usually a fixed amount and is not given as a percentage of the monthly basic salary, though individuals with higher salaries receive more than those in lower job grades.
Best regards,
Ed Llarena, Jr.
Managing Partner
Emilla International Consulting Services
From Philippines, Parañaque
Acknowledge(0)Amend(0)
I have access to very good compensation and benefits data in KSA and UAE as I have conducted Job Evaluation (JE) and Compensation & Benefits Benchmarking there. I have also prepared a Benefits Menu for both countries that can serve as a useful reference for organizations looking to develop their own compensation and benefits structure. However, we sell this data.
I have a copy of the KSA Labour Law and have studied the various corporate policies of major companies there. My observation is that the Housing Allowance provided is equivalent to three (3) months' salary, distributed monthly (e.g., if the Monthly Basic Salary (MBS) is SR 4,000, then the monthly Housing Allowance is 12,000/12 or SR 1,000), approximately 25% of the basic monthly salary. Some companies opt to offer free accommodation/housing to their employees, especially those with lower MBS, as rental costs in KSA are high. Consequently, if the company provides free housing, some may not offer any Housing Allowance at all. Even Western Expats with substantial MBS may no longer receive housing allowances if they are provided with free housing and security benefits. However, Saudis receive the 25% Housing Allowance irrespective of their MBS.
Transportation Allowance (TA) is usually a fixed amount and is not given as a percentage of the monthly basic salary, though individuals with higher salaries receive more than those in lower job grades.
Best regards,
Ed Llarena, Jr.
Managing Partner
Emilla International Consulting Services
From Philippines, Parañaque
Acknowledge(0)Amend(0)
Hello Prabhat,
My name is Rakib Ali. I'm from Kolkata, India. Currently, I'm working in the private sector as an Operations Executive, and I have one year and five months of experience. I am curious about what my minimum in-hand salary would be in any private sector position in Saudi Arabia.
Thank you.
From India, Kolkata
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My name is Rakib Ali. I'm from Kolkata, India. Currently, I'm working in the private sector as an Operations Executive, and I have one year and five months of experience. I am curious about what my minimum in-hand salary would be in any private sector position in Saudi Arabia.
Thank you.
From India, Kolkata
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