In Saudi Arabia, a well-defined set of mandatory employee benefits is established by law to protect workers and ensure they receive fair compensation and time off.

Leave and Time Off

Employees are entitled to a minimum of 30 days of paid annual leave each year. This leave must be granted within 12 months of employment; otherwise, the company owes the employee cash instead. Employers must provide paid time off for all official Saudi public holidays, typically around 10-12 days per year. The specific holidays are announced at the beginning of each Hijri calendar year.

Employees are entitled to sick leave of up to 30 days at full pay, followed by 60 days at 75% pay, and finally 30 days of unpaid leave per year. A medical certificate is usually required to avail of sick leave benefits. Female employees are granted ten weeks of fully paid maternity leave, covering six weeks before the expected due date and four weeks after childbirth. New fathers receive three days of fully paid paternity leave. Additional mandatory leaves include time off for marriage, Hajj pilgrimage after two years of service, and bereavement leave in case of a family member's death.

Social Security Benefits

All employers in Saudi Arabia must enroll their employees in the General Organization for Social Insurance (GOSI) program. This program provides various benefits, including work-related accident and disability insurance, which covers employees in case of accidents, injuries, or occupational hazards during work. It also provides death and permanent disability insurance, which offers financial support to the employee's family in case of death or permanent disability. Unemployment insurance is another benefit, offering temporary financial assistance to employees who lose their jobs involuntarily.

End of Service Benefits

Upon termination of employment, employees are entitled to a lump sum payment called the End of Service Gratuity. This gratuity is calculated based on the employee's salary and years of service.

In Saudi Arabia, employers often offer a range of optional benefits to attract and retain top talent. These perks can be categorized into financial benefits, work-life balance benefits, and other benefits.

Financial Benefits

• Relocation Allowances: This benefit helps employees with the costs associated with moving to Saudi Arabia for work, including housing, transportation, and shipment of belongings.
• Profit Sharing: Some companies share a portion of their profits with employees, motivating them and creating a sense of ownership.

Work-Life Balance Benefits

• Flexible Working Hours: Offering flexible work arrangements, such as remote work options or compressed workweeks, can improve employee well-being and productivity.
• Paid Time Off (PTO) Banks: Some companies offer a combined pool of days for vacation, sick leave, and personal days, allowing employees more flexibility in managing their time off.
• Childcare Assistance: Employers might provide subsidies or on-site childcare facilities to help employees manage work-life balance.

Other Benefits

• Company Car: Certain companies might provide employees with a company car for personal and professional use.
• Educational Assistance: Employers may offer financial assistance for employees pursuing further education or professional development courses.
• Gym Memberships or Wellness Programs: Companies might cover gym memberships or organize wellness programs to promote employee health and fitness.
• Discounts on Products or Services: Negotiated discounts on various products and services can be a valuable perk for employees.

In Saudi Arabia, health insurance is a requirement for all private sector employees, both Saudi nationals and expatriates. This requirement also extends to the employee's dependents, which includes spouses, sons under the age of 25, unmarried non-working daughters, and orphans fostered by the family.

Employer Responsibilities

The responsibility for providing health insurance lies with the employer. The employer's duties include:

• Selecting a qualified insurance company and obtaining a cooperative health insurance policy for their employees and eligible dependents.
• Paying the insurance premiums on behalf of their employees.
• Providing employees with a copy of the policy and explaining the coverage details.
• Facing potential fines and penalties for non-compliance.

Regulatory Body

The Council of Cooperative Health Insurance (CCHI) is the government body that regulates the mandatory health insurance scheme in Saudi Arabia. They establish the minimum benefits for the insurance plans and enforce the regulations.

Additional Points

• Employers have the option to expand the scope of coverage offered by the basic health insurance plan at an additional cost.
• Employers can switch insurance providers with proper notification to CCHI.

The retirement landscape in Saudi Arabia is a multi-pillar system, with contributions coming from various sources to provide financial security for retirees.

Mandatory Public Pension

Managed by the General Organization for Social Insurance (GOSI), all private and public sector employees in Saudi Arabia are automatically enrolled in this plan. Both employers and employees contribute a fixed percentage of the employee's monthly salary (12% divided equally).

The benefits include an Old-Age Pension, calculated based on 2.5% of the employee's average monthly earnings during the last two years of contribution, for each year of contributions, up to a maximum of 100% of earnings. There's also an Old-Age Settlement, a lump sum payment for those who don't meet the minimum contribution requirements for a full pension. The retirement age is 58 years for men and women with at least 120 months of contributions (60 years using the Hijri calendar). Early retirement at any age is possible with 300 months (25 years) of contributions.

Voluntary Savings Schemes

These are individual retirement plans offered by financial institutions in Saudi Arabia. They are open to all residents, including employees. Contributions are voluntary by the individual. The benefits include tax advantages on contributions and investment options for potential growth of retirement savings.

Employer-Sponsored Plans

Some employers may offer additional retirement benefits on top of the mandatory public pension. These can be defined contribution or defined benefit plans. Eligibility and contributions vary depending on the plan design and may involve employer and/or employee contributions. These plans provide an additional income stream for retirement on top of the public pension.

Future Developments

The Saudi Arabian government is exploring the possibility of introducing a mandatory private pension system alongside the existing public scheme. This could provide a more robust safety net for future retirees.