PEO Services in Saudi Arabia: Streamline HR & Ensure Compliance

Your trusted partner for HR excellence and Saudization compliance.

Why Partner with a PEO?

Your business is established in Saudi Arabia with a Commercial Registration, a dedicated team, and a vision for growth. A Professional Employer Organization (PEO) partners with companies like yours, offering a co-employment model to professionalize HR, ensure compliance with Saudi Labor Law, and free your leadership to drive expansion without a large in-house administration.

Common HR Challenges

As you manage operations in Jeddah, Riyadh, or elsewhere, these challenges may sound familiar:

  • Nitaqat Pressure: Maintaining Saudization percentages to stay in the “Green” category and avoid penalties.
  • Iqama Administration: Time-consuming renewals of work permits for expatriate staff.
  • Payroll Compliance: Ensuring WPS-compliant calculations for salaries, overtime, and deductions.
  • End-of-Service Benefits: Accurately provisioning mandatory gratuity for departing employees.
  • Legal Updates: Tracking changes to Saudi Labor Law and MHRSD regulations.

Benefits of a PEO Partnership

Expert Compliance

Navigate Saudi Labor Law, GOSI, and Saudization to avoid penalties.

Streamlined HR

Efficient, WPS-compliant payroll and administrative HR management.

Competitive Benefits

Attract and retain top Saudi talent with tailored benefits packages.

Cost Savings

Enterprise-level HR support without an in-house team’s expense.

Core PEO Services

Our PEO services integrate with your operations to manage the employee lifecycle:

  • Payroll & WPS: Calculate salaries, overtime, deductions; provide payroll statements for your WPS-compliant bank payments.
  • Iqama & Visa: Prepare documentation, liaise with MHRSD and Jawazat for visa applications and renewals.
  • GOSI Compliance: Handle monthly contributions, reports, and filings under your registration.
  • Saudization: Optimize hiring strategies for Saudi nationals to meet Nitaqat requirements.
  • Employee Relations: Mediate disputes, guide disciplinary actions, ensure compliant terminations.
  • HR Administration: Draft contracts, manage onboarding, reviews, and employee relations.
  • Tech Startups: Support Riyadh tech firms with competitive benefits and expatriate visa renewals.

Key Employer Obligations

We ensure compliance with Saudi Labor Law requirements:

  • Work Regulations (Article 13): Create and submit work organization regulations to MHRSD.
  • Notify Authorities (Article 15): Register company details with the local labor office.
  • Workplace Records (Article 17): Maintain employee files and visible work schedules.
  • Annual Reporting (Article 25): Submit workforce reports during Muharram.
  • Joint Liability (Article 11): Guide obligations during business transfers.

PEO vs. EOR

PEO

Pros: Co-employment for businesses with a legal entity; handles HR and compliance.

Cons: You remain Iqama sponsor; less suited for market entry.

EOR

Pros: Full legal employer for companies without a local entity.

Cons: Higher fees; less control over HR.

Explore our EOR services if you’re entering the Saudi market.

How It Works

Our PEO partnership is simple and tailored:

  • Consultation: Assess your HR needs and workforce size.
  • Agreement: Sign a service agreement outlining co-employment roles.
  • Onboarding: Securely migrate employee data and integrate with your accounts.
  • Activation: Your dedicated PEO team manages daily HR tasks.

Frequently Asked Questions

No, you remain the legal employer and make strategic decisions. We handle administrative tasks and compliance.

Yes, our services save 30–50% compared to in-house HR teams.

We optimize hiring for Saudi nationals, monitor Nitaqat status, and ensure compliance.

No, your company remains the Iqama sponsor. We manage paperwork and liaise with MHRSD and Jawazat.

We calculate salaries, overtime, deductions, and provide WPS-compliant payroll statements for your bank payments.

We calculate and submit monthly GOSI contributions and reports under your registration.

We provide guidance on disputes and terminations, ensuring compliance and accurate gratuity calculations.

Costs vary (2–12% of payroll or fixed PEPM). Contact us for a tailored quote.

Focus on Growth. We’ll Handle HR.

Scale efficiently with our PEO services. Request a free consultation or download our guide.

Free PEO Consultation

Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Consult legal and tax advisors for tailored guidance. Accurate as of June 10, 2025.