| Labor relations | |
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Social Insurance |
Labor relations: |
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The Labor Law does not allow the formation of labor and trade unions in the Kingdom. Disputes between employers and employees are referred to the "Committee for Settlement of Disputes" which has the exclusive jurisdiction to render decision on such matters. The law provides for inspection of business premises by inspectors from the Ministry of Labor to ensure compliance with the provisions of the Labor and Workmen Law. |
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Pay and bonuses: |
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The rates of pay in the Kingdom vary considerably from industry to industry and between nationalities. The Labor Law provides for the minimum overtime rate as 150% of the normal rate. Bonuses are payable at the discretion of the employer. It is, however customary for banks and petrochemical companies to give their staff annual bonuses. |
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Social insurance: |
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Social insurance in the Kingdom is administered by the General Organization for Social Insurance. Employers are required to make contributions at rates of 10% and 2% of salary (including benefits in kind) of Saudi and non-Saudi employees respectively. Additionally, Saudi employees are required to contribute 5% of their wages (including benefits in kind) in respect of social insurance. |
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In addition employers are required to contribute 2% of the basic salary of both Saudi and non-Saudi employees to cover the job hazards risk. |
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Certain categories of employees such as certain government employees, armed forces and diplomatic personnel, domestic servants etc are exempt from social insurance contributions. |
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Employees contribution is 9% of their wages. |
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