Comparisons
UAE vs Saudi Arabia Labor Law: Complete Comparison 2025
Compare UAE and Saudi Arabia labor laws including working hours, leave, gratuity, Emiratisation vs Saudization, visas, and termination. Essential for GCC expansion.
Published: January 23, 2026
16 min read read
7 topics covered
Quick Summary: Compare UAE and Saudi Arabia labor laws including working hours, leave, gratuity, Emiratisation vs Saudization, visas, and termination. Essential for GCC expansion.
The UAE and Saudi Arabia are the two largest economies in the GCC, and many companies operate in both markets. While both follow broadly similar labor law principles, significant differences exist in contracts, leave, compensation, localization requirements, and termination rules. This comparison helps employers navigate compliance in both jurisdictions.
| Aspect | Details |
|---|---|
| Work Week | UAE: Mon-Fri | Saudi: Sun-Thu |
| Weekend | UAE: Sat-Sun | Saudi: Fri-Sat |
| Annual Leave | UAE: 30 cal days | Saudi: 21-30 work days |
| Gratuity Min | UAE: 1 year | Saudi: 2 years |
| Localization | Emiratisation | Saudization (Nitaqat) |
Quick Overview
Key regulatory differences between the two labor markets.
Governing Bodies
UAE is governed by Federal Decree-Law No. 33/2021 under MOHRE (Ministry of Human Resources and Emiratisation). Saudi Arabia follows Saudi Labor Law (Royal Decree M/51) under MHRSD (Ministry of Human Resources and Social Development).
Work Week Structure
UAE adopted Monday-Friday work week in 2022 with Saturday-Sunday weekend. Saudi Arabia follows Sunday-Thursday with Friday-Saturday weekend. This affects scheduling for companies with staff in both countries.
| Aspect | UAE | Saudi Arabia |
|---|---|---|
| Governing Law | Federal Decree-Law 33/2021 | Royal Decree M/51 |
| Regulatory Body | MOHRE | MHRSD |
| Work Week | Mon-Fri | Sun-Thu |
| Weekend | Sat-Sun | Fri-Sat |
| Localization | Emiratisation | Saudization (Nitaqat) |
| Expat Social Insurance | None | 2% (occupational) |
Employment Contracts
Contract types and requirements differ significantly between the two countries.
Contract Types
UAE mandates fixed-term contracts only since 2022, maximum 3 years renewable. Saudi Arabia allows both fixed and indefinite-term contracts, with indefinite still permitted for Saudi nationals.
Probation Period
UAE allows maximum 6 months probation. Saudi Arabia allows 90 days, extendable to 180 days by agreement. Notice requirements during probation differ: UAE requires 14 days, Saudi requires none.
Contract Registration
UAE contracts must be registered with MOHRE. Saudi contracts are managed through the Qiwa platform. Both require Arabic as the official language with bilingual versions accepted.
Working Hours and Leave
Detailed comparison of working time regulations and leave entitlements.
Working Hours
Both countries set 8 hours daily maximum and 48 hours weekly. Ramadan reduction is 2 hours per day - UAE applies to all employees, Saudi only to Muslims. Friday working is normal in UAE; Saudi requires congregation prayer break.
Overtime
UAE overtime is 125% (25% premium) for normal hours, 150% for nights/holidays. Saudi overtime is 150% (50% premium) for all overtime. UAE limits daily overtime to 2 hours; Saudi has no specific limit.
Annual Leave
UAE provides 30 calendar days after 1 year. Saudi provides 21 working days after 1 year, increasing to 30 working days after 5 years. The working days calculation in Saudi often results in more actual time off.
Sick Leave
UAE: 90 days total (15 full pay, 30 at 50%, 45 unpaid). Saudi: 120 days total (30 full pay, 60 at 75%, 30 unpaid). Saudi offers more generous sick leave provisions.
Maternity Leave
UAE: 60 days (45 full pay, 15 half pay) with 2x30min nursing breaks for 6 months. Saudi: 70 days fully paid with 1-hour nursing break for 2 years. Saudi is more generous on maternity.
| Leave Type | UAE | Saudi Arabia |
|---|---|---|
| Annual (after 1yr) | 30 calendar days | 21 working days |
| Annual (after 5yr) | 30 calendar days | 30 working days |
| Sick (full pay) | 15 days | 30 days |
| Maternity | 60 days total | 70 days fully paid |
| Paternity | 5 working days | 3 days |
| Hajj Leave | 30 days unpaid (once) | 10-15 days paid (once) |
Compensation and Gratuity
Salary systems and end-of-service benefits comparison.
Salary Payment
Both countries mandate electronic salary payment through WPS systems (UAE) and Mudad (Saudi). UAE requires payment within 15 days of due date; Saudi by end of month. No statutory minimum wage in UAE; Saudi has SAR 4,000 minimum for Saudis in Nitaqat.
Gratuity Calculation
UAE requires 1 year minimum service, calculates on basic salary only, with 2 years' salary cap. Saudi requires 2 years minimum, calculates on basic plus fixed allowances, with no cap. Saudi resignation reduces gratuity significantly (33% for 2-5 years, 67% for 5-10 years).
Social Insurance
UAE has no social insurance for expats (12.5% employer for nationals). Saudi charges 2% employer contribution for expats (occupational hazard) and 21.5% total for Saudi nationals including pension, SANED unemployment, and occupational hazard.
| Gratuity Aspect | UAE | Saudi Arabia |
|---|---|---|
| Minimum Service | 1 year | 2 years |
| First 5 Years | 21 days/year | 15 days/year |
| After 5 Years | 30 days/year | 30 days/year |
| Calculation Base | Basic salary only | Basic + fixed allowances |
| Maximum Cap | 2 years' salary | No cap |
| Resignation Reduction | None (fixed-term) | Sliding scale (33-100%) |
Localization Requirements
Comparing Emiratisation and Saudization requirements.
UAE Emiratisation
Targets for 2025: 7% by June, 8% by December. Applies to companies with 50+ skilled employees. SME requirements (20-49 employees) now require 1-2 Emiratis. Penalty: AED 9,000/month per unfilled position.
Saudi Saudization (Nitaqat)
Uses color-coded band system (Platinum, Green, Yellow, Red). Requirements vary by industry and company size. Minimum SAR 4,000 salary for Saudis to count toward quota. Penalties include work permit restrictions and fines.
Comparison
UAE uses straightforward percentage targets. Saudi's band system is more complex but offers more sector-specific flexibility. Saudi enforcement is generally stricter with work permit restrictions. Both are increasing requirements annually.
Termination Rules
Notice periods and termination procedures.
Notice Periods
UAE: minimum 30 days, maximum 90 days. Probation termination requires 14 days notice. Saudi: 30 days for indefinite contracts, 60 days for fixed-term. No notice required during probation.
Termination for Cause
Both countries allow termination without notice for gross misconduct. UAE Article 44 and Saudi Article 80 cover similar grounds: fraud, assault, safety violations, excessive absence. UAE: 7+ consecutive days absence. Saudi: 20+ consecutive days.
Dispute Resolution
UAE: MOHRE complaint, then labor court, 2-year time limit. Saudi: MHRSD/Labor Office, then labor court, 12-month time limit. UAE's MOHRE can enforce claims up to AED 50,000 directly.
Practical Differences for Employers
What matters most when operating in both markets.
Easier in UAE
Hiring expats is more flexible with simpler visa system. Fixed-term contract framework is clear. Monday-Friday work week aligns globally. No social insurance for expats means lower employer costs. Gratuity cap provides predictable liability.
Easier in Saudi Arabia
Annual leave calculation (working days) provides more actual time off. Sick leave is more generous. Maternity leave is longer and fully paid. Gratuity base includes allowances. No gratuity cap allows full accumulation.
Cost Comparison
UAE has no expat social insurance (0%) vs Saudi 2%. UAE nationals: 12.5% vs Saudi nationals: 11.75%. Health insurance costs are similar. Gratuity provision runs ~5.8% of basic in UAE vs 4.2-8.3% of total salary in Saudi.
Frequently Asked Questions
Multi-Country HR Compliance
NeuralHR supports both UAE and Saudi labor law with country-specific calculations and compliance.
Was this guide helpful?
NeuralHR Team
VerifiedUAE HR Compliance Experts
Our team of HR professionals and legal experts specializes in UAE labor law compliance, with extensive experience helping businesses navigate MOHRE regulations, Emiratisation requirements, and workforce management in the UAE and GCC region.
Related Guides
Comparisons
GCC Gratuity Comparison: End of Service Benefits 2025
Compare gratuity and end of service benefits across UAE, Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain. Calculation formulas, eligibility, caps, and resignation impact.
Read more
Compliance Guides
Emiratisation Requirements 2025: Complete Compliance Guide
Complete guide to UAE Emiratisation requirements 2025. Includes targets, penalties, NAFIS benefits, calculation methods, and compliance strategies for companies.
Read more
Compliance Guides
UAE Labor Law 2025: Complete Employment Law Guide
Comprehensive guide to UAE Labor Law 2025 including Federal Decree-Law No. 33/2021, 2024 amendments, contracts, working hours, leave, termination, and penalties.
Read more