The Saudi Labor Law sets mandatory rules for working hours, overtime, and leave. This guide covers standard and Ramadan hours, overtime rate and daily cap, rest days, annual and sick leave, public holidays for 2026, and other leave types including parental leave. Compliance affects ESG and dispute risk; ensure overtime is recorded and paid correctly and that leave entitlements are reflected in contracts and payroll. Employer of record and HR teams must keep WPS and internal records aligned with these rules.
Standard Working Hours
Under the Saudi Labor Law, the standard working day is 8 hours and the standard working week is 48 hours, excluding rest periods and (where applicable) prayer and meal breaks. Certain sectors (e.g. some retail, hospitality, security) may have different rules or approved variations; employers must comply with the law and any sector-specific HRSD guidance. Hours beyond the standard daily or weekly limits generally count as overtime and must be paid at the statutory overtime rate (see Overtime).
Ramadan Working Hours
During Ramadan, working hours for Muslim employees are reduced to 6 hours per day (or 36 hours per week) unless otherwise agreed. Non-Muslim employees are typically subject to the standard 8 hours / 48 hours unless their contract or policy provides otherwise. Employers must roster and pay accordingly; any work beyond the reduced Ramadan hours for Muslim employees is overtime and must be paid at 150% of basic salary. Plan shift patterns and payroll in advance to avoid underpayment and dispute risk.
Overtime Rate and Daily Cap
Overtime is payable at 150% of the employee's basic hourly rate. The basic hourly rate is typically calculated as: (monthly basic salary × 12) ÷ (52 × weekly hours). The Labor Law also limits total daily working time including overtime to 11 hours in a single day (with limited exceptions for certain industries). Overtime must be paid in money — time-off-in-lieu is not a lawful substitute unless the employee agrees in writing and the arrangement is documented (e.g. in the contract or a signed addendum in Qiwa). Employers must keep records of overtime worked and paid; WPS and internal payroll should reflect overtime payments so that in any dispute the employer can demonstrate compliance.
Weekly Rest Day
Employees are entitled to at least one rest day per week, which is typically Friday for most sectors. Where operational needs require work on the rest day, the employee must receive a substitute rest day or compensation as per the Labor Law and the contract. Continuous work without a weekly rest day is not permitted. Employers in shift-based or 24/7 operations must roster rest days and document any compensatory rest or pay.
Annual Leave
After one year of continuous service, the employee is entitled to 21 days of paid annual leave. After five years of continuous service with the same employer, the entitlement increases to 30 days per year. Leave is paid at the employee's basic salary (and contractual allowances if applicable). Unused leave may not be carried over indefinitely — the Labor Law and employer policy typically require use within a defined period or payment on termination. On termination, any accrued but untaken annual leave must be paid in cash. For calculation of leave balance and payout on exit, see ESG and final settlement.
Sick Leave
Sick leave entitlements under the Saudi Labor Law are tiered:
- First 30 days in a year: full pay.
- Next 60 days: half pay.
- Next 30 days: unpaid.
Total sick leave is therefore up to 120 days per year. Employers may require a medical certificate for absences beyond a certain number of days (as per policy). Sick leave is separate from annual leave and cannot be substituted for it without agreement.
Public Holidays 2026
The following public holidays apply to the private sector in Saudi Arabia. Exact dates are set by government announcement (Islamic holidays are lunar-based):
| Holiday | Typical duration (days) |
|---|---|
| Eid Al Fitr | 4 |
| Eid Al Adha | 4 |
| National Day | 1 |
| Founding Day | 1 |
Employees required to work on a public holiday are typically entitled to compensatory leave or premium pay as per the contract and the Labor Law. Confirm current dates each year via HRSD or official gazette.
Other Leave: Maternity, Paternity, Breastfeeding
Maternity leave: 10 weeks (full pay from day one of employment). Paternity leave: 3 days. Breastfeeding breaks: nursing mothers are entitled to two breaks of at least 30 minutes each per day for 18 months after birth (or as per the Labor Law and HRSD guidance). For full detail on eligibility, pay, and job protection, see Saudi parental leave. Employers must record leave in payroll and ensure WPS and Qiwa remain consistent; unpaid leave or reduced pay during leave must be clearly documented. HRSD may require evidence of compliance during inspections.