Curious About Salary Standards for Engineers and Unskilled Workers in Saudi Arabia? Let's Discuss!

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.

Regards,
Edgar

Minimum Wage as per Saudi Labor Law

As per the Saudi Labor Law, the minimum wage is SAR 3000. This amount can be considered as the Gross Salary and should be divided into at least three components: Basic (60%), Housing (20%), and Transportation (20%). You can also add other categories 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.

Regards,
Prabhat Kumar
Sr. Executive - HR & Administration
Jaihind Projects Limited
Kingdom of Saudi Arabia
[Email Removed For Privacy Reasons]
[Phone Number Removed For Privacy Reasons]
[Phone Number Removed For Privacy Reasons]

Thank you very much for the information! Can we decrease the housing and transportation allowance for the Saudi employees? I conducted some research, and it appears that in some companies, transportation is 10% and housing is 25%. In the numbers you provided for housing and transportation, are these figures based on company policy or on the law?

Thank you.

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
[Email Removed For Privacy Reasons]
Mobile No. - [Phone Number Removed For Privacy Reasons] / [Phone Number Removed For Privacy Reasons]

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.

Salary Analysis for Different Categories

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 http://www.gulftalent.com, which provide valuable insights.

Regards, Ukmitra

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.

Market Trends and Salary Determination

1. The above information aligns with current market trends based on my own research. It corresponds 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."

Compensation for Fresh Graduates

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.

Regards,
Ukmitra

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!