On August 6, 2024, the Saudi Council of Ministers approved significant amendments to the Kingdom of Saudi Arabia's (KSA) Labor Law and its Implementing Regulations.
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On August 6, 2024, the Saudi Council of Ministers approved significant amendments to the Kingdom of Saudi Arabia's (KSA) Labor Law and its Implementing Regulations. These changes, effective February 19, 2025, aim to modernize the labor market, enhance job stability, and attract both employers and employees. Aligning with Saudi Vision 2030, the amendments seek to improve working conditions, increase employment opportunities, especially for women, and bring Saudi labor laws closer to international standards.
Saudi Arabia's labor market consists of approximately 13.5 million workers, with expatriates making up 10 million (74%) and Saudis accounting for 3.5 million (26%). Women represent around 35% of the total workforce, a number expected to rise under Vision 2030 reforms. The amendments introduce changes across various employment aspects, including wages, benefits, leave policies, probationary periods, training, resignation procedures, contract termination, workplace equality, and compliance penalties.
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