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 most significant documented operational risk in 2026 is the automated data mapping between Qiwa and GOSI: if an expatriate employee's job classification (SSCO code) on the Qiwa work permit fails to precisely match the occupational category reported in the monthly GOSI payroll filings, the system automatically suspends the work permit without prior warning. The verification exists to stop companies from sponsoring individuals for specialized roles while declaring them under lower-cost classifications for insurance purposes.

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

  1. Create the employee profile and the digital contract on Qiwa.
  2. The employee accepts the contract via the Qiwa Afrad app.
  3. Enroll the employee in GOSI within 15 days of the start date.
  4. 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

Per the June 2026 baseline — fees change by subsequent decisions:

| Item | Amount or rate | | --- | --- | | Expatriate work permit and levy | SAR 9,700 annually | | GOSI — Saudi employee | 21.5 percent of salary (shared) | | GOSI — expatriate employee | 2 percent, borne by the employer | | Qiwa platform subscription | SAR 1,265 to 7,000 |

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 its occupation codes aligned and matched between Qiwa and GOSI, where an error means automatic work permit suspension.
  • 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.