HR Compliance

Saudi Labor Law & Zoho People: HR Compliance Made Easy

Iqama tracking, GOSI deductions, end-of-service benefits, and Saudization quotas — all handled in one HRMS.

Vikas Saroj Vikas Saroj March 21, 2026 9 min read

Saudi labor regulations have specific demands no off-the-shelf HRMS handles out of the box. Iqama tracking, GOSI contributions, end-of-service benefits (EOSB), Saudization (Nitaqat) quotas, WPS filing - they all need to work together. Here's how Zoho People + Payroll handles each one.

Iqama Renewal Tracking

Iqama renewal is a calendar emergency that turns into a compliance fine if missed. Configure Zoho People with:

  • Custom date fields for Iqama issue date and expiry
  • Automated 90-day, 60-day, and 30-day reminders to the HR team and the employee
  • Escalation to HR leadership if not renewed by D-7
  • Document upload for the renewed Iqama copy as audit evidence

GOSI Contributions

Employee TypeEmployer ContributionEmployee ContributionCoverage
Saudi national9.75%9.75%Retirement + Unemployment
Expatriate2%0%Workplace hazard only

Configure Zoho Payroll's tax engine to apply the correct slab automatically based on the employee's nationality field.

End-of-Service Benefits (EOSB)

Saudi labor law: half a month's salary per year of service for the first 5 years, then a full month per year thereafter. Pro-rated, accrued monthly. Zoho People + Payroll computes this in real-time and shows each employee their current entitlement on the self-service portal.

Nitaqat (Saudization) Quota Management

Saudi businesses are categorized into bands - Platinum, Green (High/Mid/Low), Yellow, Red - based on their Saudization ratio. Track your band against your headcount in real-time. Configure alerts when:

  • You approach a band boundary (e.g., dropping from Green High to Green Mid)
  • A Saudi resignation could push you below the threshold
  • A pending hire would improve your band

WPS (Wage Protection System) Filing

Saudi WPS requires monthly salary file submission to the Ministry of Human Resources via authorized banks (Riyad Bank, SNB, SAB, Al Rajhi, etc.). Zoho Payroll generates the SADAD-compliant text file with one click. Upload to your bank's portal - done.

Annual Leave & Eid Leave Tracking

Saudi minimums:

  • 30 days annual leave after 5 years of service (21 days before)
  • Sick leave with graduated pay (30 days full, 60 days 75%, 30 days unpaid)
  • Eid Al Fitr and Eid Al Adha public holidays per Hijri calendar

Configure leave types per Saudi minimums (with company top-ups as you wish).

Iqama and Visa Tracking for Expat Employees

Build a Zoho Creator companion app for visa and Iqama lifecycle: exit-re-entry permits, dependent visas, transfer of sponsorship, family-status tracking. Integrate it back into Zoho People as the master HR record.

Common HR Compliance Mistakes in KSA

  • Using a global HRMS without configuring Saudi-specific calculations - GOSI and EOSB are wrong by default
  • Manually tracking Saudization band - inevitable to miss a transition
  • Late WPS filing - the penalty applies the moment you cross the 3-business-day window
  • Not capturing Hijri dates for government-related events

Frequently Asked Questions

Is Zoho People compliant with Saudi labor law?

Yes, when configured by a Saudi-aware partner. The platform supports all required fields, calculations, and reports.

Can Zoho Payroll generate WPS files?

Yes. SADAD-format file generation is built in - upload directly to your bank.

How does Zoho People handle Iqama tracking?

Through custom fields, automated workflows, and notification rules we configure during implementation.

Need a Saudi-compliant HRMS? Talk to Raqmiat about Zoho People.

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