Hiring Your First Employee: Qiwa, GOSI, Work Permit

The short answer

Hiring a first employee in Saudi Arabia runs through three platforms: Qiwa for the digital contract, accepted by the employee; GOSI for enrollment within 15 days of the start date; and Muqeem for a new expatriate's Iqama within 90 days of arrival. An expatriate carries two rates, not one: a SAR 100 annual work permit fee, plus a levy of SAR 8,400 a year where expatriates do not exceed the Saudi headcount and SAR 9,600 where they do.

3 min read

Hiring a first employee is the moment a small business truly enters the world of labor compliance. The contractual relationship itself is governed by the Saudi Labor Law issued by Royal Decree M/51, as amended by Royal Decree M/44 of 1446H, with amendments effective 19 February 2025 — while the procedural execution runs through three interconnected government platforms whose data must stay matched at all times. This page lays out the sequence and costs as documented up to June 2026, within the business guides and labor rights materials on Hala Law.

The three platforms: Qiwa, GOSI, and Muqeem

Qiwa (qiwa.sa): digital employment contracts, work permits, and localization metrics.
GOSI: employee enrollment and monthly social insurance payroll deductions.
Muqeem and Absher: residency and immigration matters for expatriate employees.

The Ministry of Human Resources requires the profession recorded on the work permit to match the work the employee actually performs, and the penalties set in the ministerial decision apply to an employer who allows a non-Saudi to work in a profession other than the one on their permit. The point of this is to stop companies sponsoring individuals for specialised roles while declaring them under lower-cost classifications for insurance purposes. The widely repeated claim that a code mismatch between Qiwa and GOSI triggers an immediate automatic suspension without warning could not be verified against a published official source, so we do not present it here as an established mechanism — what is established is the matching requirement and the penalty for breaching it.

Required documents

The employee's National ID or Iqama.
A digital employment contract defining base salary, housing allowance, and transport allowance.
Attested educational certificates for specialized expatriate professions.

The sequence, step by step

Create the employee profile and the digital contract on Qiwa.
The employee accepts the contract via the Qiwa Afrad app.
Enroll the employee in GOSI within 15 days of the start date.
For a newly arrived expatriate: issue the Iqama via Muqeem within 90 days of arrival.

The steps above reflect the last verification in June 2026; labels and screens may change as the platforms are updated.

Fees and costs

The figures below come from the levy rules issued by Council of Ministers Decision 325, and change with subsequent decisions:

Item	Amount or rate
Work permit fee	SAR 100 a year per expatriate worker (SAR 25 per quarter)
Levy — expatriates not exceeding the Saudi headcount	SAR 700 monthly / 8,400 a year
Levy — expatriates exceeding the Saudi headcount	SAR 800 monthly / 9,600 a year
GOSI — Saudi employee, new entrant	Pensions 11 percent each side (phased over 5 years) + occupational hazards 2 percent employer + SANED 1.5 percent split — check the rate in force this year
GOSI — expatriate employee	2 percent, borne by the employer
Qiwa platform subscription	No fixed price list published — check in the establishment's Qiwa account

The April 2026 update: Qiwa-documented contracts are the basis

Among the most consequential changes of the past months: as of April 2026, Saudization ratios under Nitaqat are calculated exclusively using contracts electronically documented on Qiwa. A Saudi employee working under an unverified paper contract does not appear in the localization calculation at all. Documenting your first Saudi hire's contract on Qiwa is therefore not a formality — it is what makes the hire count toward the establishment's classification. The tiers and the minimum counted wages are covered in the Saudization and Nitaqat guide.

Expected timeline

One to two weeks for transferring an employee already inside Saudi Arabia, assuming an amicable release from the previous employer.
One to two months for overseas recruitment, including medical clearance and embassy processing.

When do you need a licensed lawyer or advisor?

The information above is a general framework, not an assessment of any specific hiring situation. Engaging an HR professional, licensed lawyer, or certified advisor carries direct weight when:

The establishment needs the profession on the work permit to match the work the employee actually does; allowing a non-Saudi to work in a profession other than the one on their permit carries the penalties set in the ministerial decision.
The establishment's position calls for localization ratio planning before expanding headcount, since every hire moves the Nitaqat classification.
A labor dispute arises over the contract, wages, or termination — matters assessed on each case's facts and documents before the competent bodies.
Contracts include bespoke clauses — probation periods, training terms, non-compete — whose effect varies with their drafting.

In those situations every assessment turns on the establishment's facts and documents, not on a single general rule.

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Frequently asked questions

When must the employee be enrolled in GOSI?

Per the documented sequence as of June 2026, the employee is enrolled in GOSI within 15 days of the start date, after the digital contract is created in Qiwa and accepted by the employee.

How much does an expatriate employee's work permit cost?

The SAR 9,700 figure in circulation is right in one case only. Under the levy rules issued by Council of Ministers Decision 325: the work permit fee is SAR 100 per expatriate worker, and the levy is **SAR 800 monthly (9,600 a year) for expatriate workers exceeding the number of Saudi employees** and **SAR 700 monthly (8,400 a year) for those not exceeding it**. So the annual total is SAR 9,700 in the first case and SAR 8,500 in the second. Payment may be split quarterly at minimum: SAR 25 for the permit plus SAR 2,400 or 2,100 of levy per quarter. The units for workers exceeding the Saudi headcount are collected first, then those matching it. Domestic workers are excluded. As for the Qiwa subscription, the platform publishes no fixed price list to rely on — check it in the establishment's Qiwa account.

What are the GOSI contribution rates?

The rate depends on which law applies to the employee, and that matters especially for a first hire. The new Social Insurance Law is confined to those newly joining work with no contribution periods before 3 July 2024 — which is most people being hired today. Under it: the pensions branch is 11 percent on each of employer and subscriber, phased in over five years at 0.5 percent a year from year two; occupational hazards and additional compensation are 2 percent borne by the employer; and SANED is 1.5 percent split equally. The 21.5 percent figure in circulation applies to existing subscribers under the previous system. Because the schedule is phased, check the rate in force for the current year with GOSI.

What happens if the occupation code differs between Qiwa and GOSI?

What is officially established is that the profession on the work permit must match the work the employee actually performs, and that the penalties set in the ministerial decision apply to an employer who allows a non-Saudi to work in a profession other than the one on their permit. The description of the suspension as automatic, immediate and without warning on a code mismatch between Qiwa and GOSI could not be verified against a published official source. Either way, keeping the data matched across the two platforms is an ongoing operational responsibility, not a one-time step.

Does a Saudi employee on a paper contract count toward Nitaqat?

No. As of the April 2026 update, Saudization ratios are calculated exclusively using employment contracts electronically documented on the Qiwa platform. A Saudi employee on an unverified paper contract does not appear in the localization calculation at all.

How long does hiring a first employee take?

No official body publishes a standard duration for either route, and the real elapsed time depends on the establishment and the issuing authority. The periods that are fixed are compliance deadlines rather than processing times: GOSI enrollment within 15 days of the start date, and the Iqama within 90 days of a new expatriate's arrival.

Official sources

Source	Article / reference	As of
The levy on work permits — rules for calculating the levy, Ministry of Human Resources and Social Development	Council of Ministers Decision 325 of 13/6/1442H: work permit fee SAR 100 per expatriate worker; levy SAR 700 monthly (8,400 annually) for expatriate workers not exceeding the number of Saudi employees and SAR 800 monthly (9,600 annually) for those exceeding it; payable quarterly at minimum; domestic workers excluded	2026-07-26
Social Insurance Law — Umm Al-Qura	The new law, confined to those newly joining work with no contribution periods before 3 July 2024	2026-07-26
Guide to the increase in contribution rates — Awareness Platform, General Organization for Social Insurance	Pensions branch 11% on each of employer and subscriber, phased over five years at 0.5% a year from year two; occupational hazards 2% on the employer; SANED 1.5% split equally	2026-07-26
Qiwa Platform — Ministry of Human Resources and Social Development	Qiwa: how to issue or renew work permits	2026-06-26

Change log

2026-07-26Corrected the levy from a single figure (SAR 9,700) to its two rates under Council of Ministers Decision 325: SAR 100 permit fee, plus SAR 8,400 a year where expatriates do not exceed the Saudi headcount and SAR 9,600 where they do — a total of SAR 8,500 or 9,700 depending on the case. Added quarterly payment, the priority of collecting the excess units first, and the exclusion of domestic workers. Removed two non-official sources, withdrew the description of work permit suspension as automatic, immediate and without warning as unverifiable, and kept the profession-matching requirement and its penalty.
2026-07-06First edition

Content on this site is general legal information, not legal advice, and is no substitute for consulting a licensed lawyer. We link you to official sources and do not represent any government body.